PF 2025-38 (FAL 2025-05) Implementation of Indirect and Fringe Benefits Cost Reimbursement Limits on Financial Assistance Awards
On November 10, 2025, the U.S. District Court for the District of Oregon entered an appealable order vacating Policy Flash PF 2025-25 in its entirety and enjoining DOE from implementing it (Case 6:25-cv-01458-MTK). The Department of Energy reserves all rights to appeal. Portions of Financial Assistance Letter FAL 2025-05 and its appendices that implement Policy Flash PF 2025-25 must not be applied until further notice.
Date: June 30, 2025 (Updated 11/14/2025)
To: HCAs/Procurement Directors/Contracting Officers
From: Director, Contract and Financial Assistance Policy Division, Office of Policy, Office of Acquisition Management
SUMMARY: This Policy Flash provides information and guidance on DOE’s implementation of the indirect cost and fringe benefit reimbursement limit in financial assistance awards. The reimbursement limit will be calculated as a percentage of the
Total Award Amount and specified in the award terms and conditions as a maximum dollar amount to be used for indirect costs and fringe benefits. The percentages used to calculate the reimbursement limitations are as follows:
- For-Profit Organizations: up to 15% of the Total Award Amount
- Nonprofit Organizations: up to 15% of the Total Award Amount
- State & Local Governments: up to 10% of the Total Award Amount
Questions concerning this policy flash should be directed to the Contract and Financial Assistance Policy Division at DOE_oapmpolicy@hq.doe.gov.
For NNSA questions concerning this policy flash, please contact the Acquisition Policy and Oversight Division, Policy & Oversight Branch (NA-PAS-111), at (505) 845-5639.