Cost Share Agreements

							Cost Share
Agreements




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Cost Share - Agenda
 Master Agreement Provisions
 Elements of a Cost Share
 Shared Costs
 Cost Share Methods
 Tracking costs
 Close-out/Billing



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Master Agreement – Cost Share
Clause
   Delegates authority to line officer to
    negotiate cost share.
   Stipulates when a cost-share agreement
    will be prepared
     Multi-jurisdictional or
     Threatens or burns across direct protection
      boundaries
   Includes sample agreement

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Cost Share Agreement – Key
Elements
1.   Parties to the agreement
2.   Authority for the agreement
3.   Incidents involved – names & numbers
4.   Time period – start and stop
5.   Technical contacts



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Cost Share Agreement – Key
Elements
6. Approving Officials
7. Date of final agreement
8. Source used to arrive at costs




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Cost Share Agreement – Key
Elements
9. Method of cost sharing
   Mutual Aid
   Acres Burned
   Cost Apportionment
   You Order You Pay
10. Who captures the costs


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Shared Costs - What DO we
share?
 Aircraft and associated retardant
 Equipment
 Personnel/Travel
 Off incident support costs
  Buying Team
  Mob center
 Suppression Rehab


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Shared Costs - What DON’T we
share?

 Accountable/Sensitive property
 Administrative Overhead costs
       agency personnel, support and services
        not directly involved with the incident
 Claims costs
 Non-suppression rehab



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Cost Share – Common language




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Cost Share Methodologies
   Each Agency pays for its own resources
      fire suppression efforts are primarily on
      jurisdictional responsibility lands.
     services rendered approximate the
      percentage of jurisdictional responsibility, but
      not necessarily performed on those lands.




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Cost Share Methodologies
             You Order You Pay (YOYP).
   Each agency is fiscally responsible for the
    resources they order, regardless of where they
    are used on the incident.
   A unified ordering point is required
   On-incident support costs may be split by the
    percentage of agency requested resources.
   Off-incident support costs are paid for by the
    ordering unit.


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Cost Share Methodologies
               Cost by Acre
  Fair  method IF direct resources equally
   utilized across all direct protection areas.
  Based on percentage of acres burned within
   each direct protection area.
  Final map should be attached.




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Cost Share Methodologies
          Cost Apportionment
Most common method:
   Assignment    of direct resources tracked and
    validated daily.
   Support costs shared proportionally to the
    direct costs.
   Aviation costs should be on an actual use
    basis.


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Cost Share Methodologies
   Cost Apportionment - NR Effort Methods
     Effort Method #1 – % acres burned & costs by day.
     Effort Method #2 - common cost apportionment
     Effort Method #3 – weighted effort by category of
      control line, i.e., Road and Equipment
                High
                Moderate
                Low




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Cost Share Tracking
   ISuite – Cost Module
     Creates  a daily line entry for each resource
     Variety of report options available
        Cost Share Summary
        Cost Share by Shift and Kind

        Cost Share Detail

        Cost Share Resource Worksheet




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Cost Share Tips
 Revisit the agreement as fire progresses
 Consider cost-share for support
  organizations, i.e., expanded dispatch,
  buying team, etc.
 Request assistance
      IncidentBusiness Advisor (IBA)
      Agency Business Representative

      Agency Incident Business Coordinators


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Close-out/Billing
 Regardless of the cost share method
  utilized, percentage is applied to actual
  costs.
 All federal agencies bill their own costs,
  regardless of the lead agency.
 Final billing normally is not complete until
  the following spring.

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