Which federal agencies will negotiate indirect costs rates with institutions?

The correct answer is that the Department of Health and Human Services (DHHS) and the Office of Naval Research (ONR) are the federal agencies responsible for negotiating indirect cost rates with institutions. Understanding the role of these agencies is crucial in the context of grant funding and financial management within research institutions.

DHHS plays a significant role in funding health-related research and conducts negotiation for indirect cost rates, which are essential for covering overhead expenses related to federally funded projects. The ONR, being a part of the Department of the Navy, funds various research initiatives and is involved in indirect cost rate negotiations, particularly for institutions involved in defense-related research.

In this way, both agencies help institutions secure the necessary funding to support research initiatives while ensuring proper use and management of federal funds. This negotiation process allows institutions to receive reimbursement for indirect costs associated with their research activities, fostering an environment for conducting productive research.

The other options include combinations of different agencies, some of which may not have a role in negotiating indirect costs or may not work together in this respect. Consequently, those combinations would not accurately represent the federal entities involved in these negotiations. Thus, the focus on DHHS and ONR stands out as the correct pairing responsible for these negotiations.