Issues Identified During our Evaluation of Interagency Agreement No. R13PG20058 Between the Bureau of Reclamation and the U.S. Geological Survey

While evaluating interagency agreement No. R13PG20058 between the U.S. Geological Survey (USGS) and the Bureau of Reclamation (USBR), we identified issues with the rates USGS charges for its reimbursable services. Under the agreement, USGS provides USBR with water quality and monitoring services in the Upper Klamath and Lost River Basin. We found that USGS charges an administratively determined rate of 12 percent to cover its overhead costs for providing reimbursable services. This bureau-level overhead rate has not been revised since atleast 2009 and does not reflect USGS' actual cost of providing service.

 

To ensure that its bureau-level overhead rate reflects its actual cost of providing service, we recommend that USGS implement a policy of recalculating and revising the overhead rate annually and charge that overhead rate on all interagency agreements and reimbursable activities.