The Incurred Cost Submission – When It Is Required, How to Prepare and Best Practices

Contractors with the Federal Acquisition Regulation (FAR) Clause 52.216-7, Allowable Cost and Payment included in their cost reimbursable and time & materials (T&M) contracts are required to submit an Incurred Cost Submission (ICS). Submitting your ICS on time to the appropriate Government Administrative Contracting Officer and the cognizant Defense Contract Audit Agency (DCAA) office can be a hurdle but a requirement. Late submissions are subject to a unilateral decision by the Contracting Officer (CO) to apply a decrement factor, which will reduce the billed cost.In this episode of Cherry Bekaert’s GovCon Podcast, Brendan Halloran, a Senior Manager in the Firm’s GovCon practice who was previously a Divisional Administrative Contracting Officer (DACO) at the Defense Contract Management Agency (DCMA), welcomes Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contracting Industry practice. Together they cover the ICS submission process, the first step in developing final indirect cost rates for contractors with flexibly priced contracts, due six months after the end of the fiscal year.Listen in as they discuss:When an ICS is a requirementICS preparation and required schedulesDCAA’s ICE ModelThe importance of the preparation, due diligence and review processFactors that can play into questioned costs and the full audit programProcess for extensions and repercussions for not timely submitting an ICS Common issues and best practicesIf you have any questions specific to your situation, Cherry Bekaert’s GovCon consultants are available to discuss your situation with you.View all Government Contracting Podcasts