Cook Inlet Tribal Council, Inc. v. Mandregan, No. 19-5005 (D.C. Cir. 2021)Annotate this Case
Cook Inlet Tribal Council, representing federally recognized tribes in Alaska, opened an alcohol recovery center through a contract with the Indian Health Service. The Indian Self Determination and Education Assistance Act, 25 U.S.C. 5321, requires that the Service pay the secretarial amount, a negotiated sum that cannot be less than what the Service would have spent on the program if it directly provided care, and pay contract support costs to reimburse tribes for expenses the Service does not incur when it runs the program, like workers’ compensation premiums.
In 1992, the Service agreed to pay the Council $150,000; $11,838.50 paid for facility costs (rent and a partial salary for a facilities coordinator) as expenses the Service would have incurred if it ran the recovery center. The Service paid the facility costs from the secretarial amount. In 2014, the Council received $2,000,000 from the Service. In 2014, the Council unsuccessfully proposed to add $400,000 in annual facility costs to be paid as contract support costs to supplement secretarial funds already applied to facility costs. The Council did not request an increase in the annual secretarial amount to cover the unfunded facility costs.
The district court awarded judgment to the Council. The D.C. Circuit reversed. The Act does not require the government to pay contract support costs for expenses the Service normally pays when it runs a health program. Those expenses are eligible for reimbursement only under the secretarial amount.