According to DAP 9525.9: (1) eligible DAC are actual reasonable costs that can be assigned to one specific project; (2) indirect costs are incurred for a common or joint purpose to benefit more than one cost objective and are not readily assignable to the cost objectives specifically benefited; and (3) indirect costs are not eligible for reimbursement as DAC. The Memorandum from the Assistant Administrator also explains that travel expenses related to general support and not directly tied to one specific project are indirect costs.The Grantee claimed travel costs were incurred for the benefit of multiple PWs during each respective trip. Accordingly; those costs are ineligible for reimbursement as DAC. Appeal Letter

Memorandum from Assistant Administrator (Sept. 8; 2009). HeadnotesAccording to DAP 9525.9: (1) eligible DAC are actual reasonable costs that can be assigned to one specific project; (2) indirect costs are incurred for a common or joint purpose to benefit more than one cost objective and are not readily assignable to the cost objectives specifically benefited; and (3) indirect costs are not eligible for reimbursement as DAC. The Memorandum from the Assistant Administrator also explains that travel expenses related to general support and not directly tied to one specific project are indirect costs.The Grantee’s claimed travel costs were incurred for the benefit of multiple PWs during each respective trip. Accordingly; those costs are ineligible for reimbursement as DAC. Appeal Letter