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OMB A-87: Cost Principles for State, Local, and Indian Tribal Governments

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OMB A-87: Cost Principles for State, Local, and Indian Tribal Governments

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Cost Principles

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Why does OMB A-87: Cost Principles for State, Local, and Indian Tribal Governments matter?

Contractors working with state and local governments on federally-funded projects must understand these cost principles. Indirect cost rate negotiation, cost allocation plans, and allowability determinations follow this framework (now in 2 CFR 200).

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Key Requirements

  • Indirect cost rate proposals and negotiations
  • Cost allocation plans for central services
  • Direct/indirect cost classification rules
  • Allowable and unallowable cost definitions

Details

Document
A-87
Category
Cost Principles
Requirements
4

Other Cost Principles Documents

A-122: Cost Principles for Non-Profit OrganizationsA-122A-21: Cost Principles for Educational InstitutionsA-21A-94: Guidelines and Discount Rates for Benefit-Cost Analysis of Federal ProgramsA-94

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Bureauify. (2026). OMB A-87: Cost Principles for State, Local, and Indian Tribal Governments — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/omb/a-87

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