Appendix-B-Summary-of-Savings Intragovernmental-Administrative-Costs 4. Intragovernmental Administrative Costs. Simplifying and reducing the federal government's reporting requirements will generate savings at the federal, state, and local levels. The estimate assumes that over 75% of the state and local governments will accept a fee-for-service option in place of existing cost reimbursement procedures from FY1995-1999 in return for greater administrative flexibility. Eliminating cost reimbursement procedures slows cost growth by 3% per year at the federal level.