Incurred Cost Submission Deadlines are around the corner for 12/31 year end contractors

No One Gets Good at Anything They do Once a Year!

The annual Incurred Cost Proposal is a constant for most government contractors (GCs). The Allowable Cost and Payment clause of FAR 52.216-7 requires that every GC with flexibly priced contracts generally prepare and submit their incurred cost proposal no later than six months following the end of their fiscal year.

The Defense Contract Audit Agency (DCAA) provides an Excel® template for the proposal (called the “Incurred Cost Electronic” or ICE model) and most firms use it. Some GCs also use DCAA’s adequacy checklist to review their finished proposals. The ICE template isn’t particularly difficult to figure out, but it is both temperamental and fragile, and completing it is a time-consuming and error-prone process. And, if you only do it once a year, you’ll probably never get really good at it.

Outside Help and Outside Eyes Can be Very Effective

We’re good at it! We understand the incurred cost proposal requirements, the process, the ICE model and we review/assist/prepare dozens of them for our clients each year. Many of our clients have come to realize that preparing their own proposal is a time drain. Taking even a small part of the accounting or finance staff off-line for a month or more each year to re-learn the ICE model is especially onerous during the first half of the year when so much else is going on.

And, DCAA is known to reject a submission based on its adequacy checklist – sometimes for the smallest things! Don’t let that happen to you.

We can help with your proposal on several different levels.

• We can prepare the entire proposal for you from your accounting reports.
• We can conduct training on the ICE model specific to your organization to get your staff up to speed on the model and any changes to requirements or formats.
• We can do an independent review of your self-prepared proposal.

If we assist you, whether we prepare the entire proposal or review the materials you’ve prepared, we will complete DCAA’s adequacy checklist for you to submit with the proposal to help ensure acceptance.

We Can Help

That ICP submission deadline will be here before you know it! Contact Kristen Soles at 703-847-4411 to discuss your needs and explore how we can help.

About Watkins Meegan, a division of CohnReznick LLP

CohnReznick professionals have been specializing in the government contracting industry for over 40 years. We have worked with government contractors ranging from small to Fortune 100, as well as agencies themselves. Over these 40 years, we have worked with contractors that span the globe and have worked with all federal government agencies and departments. We thoroughly understand contracting vehicles, FAR and CAS clauses, set-aside programs, and affiliation rules.

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