108 STAT. 3996 PUBLIC LAW 103-382—OCT. 20, 1994 "(A) conduct such studies as may be needed to establish an empirical basis for determining relevant factors substantially affecting the required administrative costs of tribal elementary and secondary educational programs, using the formula set forth in subsection (c), and "(B) conduct a study to determine— "(i) a maximum base rate which ensures that the amount of the grants provided under this section will provide adequate (but not excessive) funding of the administrative costs of the smallest tribal elementary or secondary educational programs, "(ii) a minimum base rate which ensures that the amount of the grants provided under this section will provide adequate (but not excessive) funding of the administrative costs of the largest tribal elementary or secondary educational programs, and "(iii) a standard direct cost base which is the aggregate direct cost funding level for which the percentage determined under subsection (c) will— "(I) be equal to the median between the maximum base rate and the minimum base rate, and "(II) ensure that the amount of the grants provided under this section will provide adequate (but not excessive) funding of the administrative costs of tribal elementary or secondary educational programs closest to the size of the program. "(2) The studies required under paragraph (1) shall— "(A) be conducted in full consultation (in accordance with section 1131) with— "(i) the tribes and tribal organizations that are affected by the application of the formula set forth in subsection (c), and "(ii) all national and regional Indian organizations of which such tribes and tribal organizations are t3T)ically members; "(B) be conducted onsite with a representative statistical sample of the tribal elementary or secondary educational programs under a contract entered into with a nationally reputable public accounting and business consulting firm; "(C) take into account the availability of skilled labor, commodities, business and automatic data processing services, related Indian preference and Indian control of education requirements, and any other market factors found substantially to affect the administrative costs and efficiency of each such tribal elementary or secondary educational program studied in order to assure that all required administrative activities can reasonably be delivered in a cost effective manner for each such program, given an administrative cost allowance generated by the values, percentages, or other factors found in the studies to be relevant in such formula; "(D) identify, and quantify in terms of percentages of direct program costs, any general factors arising from geographic isolation, or numbers of programs administered, independent of program size factors used to compute a base administrative cost percentage in such formula; and "(E) identify any other incremental cost factors substantially affecting the costs of required administrative cost func-
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