Use Costpoint To Get Rid Of DCAA Inadequacies For Incurred Cost Submissions

1. Use Costpoint To Get Rid Of DCAA Inadequacies For Incurred Cost Submissions If you’re working under the norms of the DCAAon a federal contract or grant, you’ll probably have to create an ICS. Some people use the terms final indirect rate proposal, cost rate submission, incurred cost proposal, and incurred cost electronic submission for ICS. If you look for the Federal Acquisition Regulations or FAR 52.216-7, you’ll find the Allowable Cost & Payment Clause. It requires government contractors like you to submit a proposal for incurred costs within six months of the end of your financial year. If you wish to learn about the potential outcomes of failing to meet deadlines, there’s a webinar you need to watch. The name doesn’t make any difference because the purpose remains the same. It fundamentally incorporates truing up your actual indirect expenses to the indirect cost billed provisionally in the previous contractor fiscal year. The ultimate objective is to disclose the fact that the costs are allocable, reasonable, and allowable in compliance with the FAR, GAAP, CAS, and contract provisions. The webinar mentioned above reviews all the ICS schedules, as well as their reconciliation points in an in-depth manner. It even addresses the schedules, whether supplemental or mandatory, that you can avoid completing while submitting ICS and what makes an adequate submission. It’s best for contractors to refer to the ICS Adequacy Checklist of the Defense Contract Audit Agency for an internal review before submitting anything. The rates developed from this submission are usually the starting points for calculations, including Provisional Billing rates, Forward Pricing rates, and more. More about ICS

2. According to the GSA, government contractors won’t get any kind of a “blanket extension” of time regarding IncurredCost Submissions because of the COVID-19 pandemic. Unless a contractor requests a specific amount of time extension in accordance with the FAR, the individual has to file in accordance with the terms and conditions of the contract, particularly the payment clause 52.216-7 and allowable costs. In the end, you should remember that documentation is mission-critical for the successful outcome of an incurred cost audit. Continuity is also something worth pondering over as there may be a lag in time between submitting the data and an audit of the incurred cost proposal. Finally, remember to prepare supplemental schedules, even if they don’t seem mandatory for submission. Contact Us Address: Edward D. Moore, dcaa Consulting LLC Phone: 336-880-9040 Email: dcaacunsultant@gmail.com