For government contractors, navigating the
complexities of DCAA (Defense Contract Audit Agency) incurred cost submissions is
crucial for maintaining compliance and securing future contracts. The incurred
cost submission, also known as the Incurred Cost Electronically (ICE) model, is
a detailed report that contractors must submit annually, documenting all costs
incurred during the fiscal year.
What is an Incurred Cost Submission?
An incurred cost submission is a
comprehensive report detailing all expenses a contractor has incurred under a
government contract. This submission allows the DCAA
to verify that costs are allowable, reasonable, and allocable according to the
Federal Acquisition Regulation (FAR) Part 31. Properly preparing and submitting
this report is critical, as errors can lead to audits, financial penalties, or
contract termination.
Key Components of an Incurred Cost
Submission
Schedules: These include the Schedule of
Direct Costs by Contract/Subcontract, Indirect Cost Rate Schedules, and the
Certificate of Final Indirect Costs.
Schedules of Indirect Costs: These outline
costs related to overhead, general, and administrative expenses, and fringe
benefits.
Supporting Documentation: Detailed records
supporting the costs claimed, such as timesheets, invoices, and receipts, must
be included.
Strategies for Successful Submission
Accurate Record-Keeping: Maintain
meticulous records throughout the year to ensure all expenses are
well-documented and easily accessible.
Internal Reviews: Conduct regular internal
audits to identify and rectify any discrepancies before submitting the report.
Timely Submission: Submit the report by the
required deadline to avoid penalties or increased scrutiny.
Software Solutions: Utilize accounting
software that integrates with DCAA requirements to streamline the process and
reduce the risk of errors.
At DCAA Consulting, we streamline your
incurred cost submissions, ensuring accuracy and compliance with DCAA
requirements. Our expertise minimizes risks, saves time, and prevents costly
errors, allowing you to focus on your core business. Partner with us for
seamless compliance and peace of mind in government contracting.
