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2 CFR 200 allows any non-Federal entity (NFE) that has never received a negotiated indirect cost rate to charge a de minimis rate of 10% of modified total direct costs (MTDC), which the NFE may be use indefinitely as a Federally-negotiated rate.  This option for NFE recovery of proper indirect costs incurred during work under Federal awards removes administrative barriers smaller organizations previously faced receiving and implementing Federal financial assistance. With the introduction of the de minimis rate, these organizations can now charge allowable costs which indirectly support the direct work on the Federally-funded project(s); something that was previously difficult because of the large administrative burden associated with the negotiation process. 

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