The Federal Acquisition Regulations require government contractors to submit an incurred cost proposal within 6 months after the end of its fiscal year. This applies to contractors with cost plus contracts or T&M contracts where the contractor is reimbursed for indirect burdens (M&H or G&A) on non-labor costs.
If a contractor does not provide a cost submission, then DCAA may recommend that the contracting officer make a unilateral determination regarding your indirect cost rates. This means that the contracting officer will be able to determine your rates and leave your organization with no recourse, even if the assigned rates are much lower then required to ensure profitability. In addition, you may be penalized if you misclassify cost (direct, indirect & unallowable) in you submission.
Preparing the incurred cost submission is a very time-consuming task for many organizations, especially if your systems have not been designed to properly track and segregate you costs. AB S can help by both providing ICS development support and by performing a system review and reconfiguration that will ensure the future ICS processes are simpler and far less time-consuming provide the following services:
- Development of the incurred cost submission & supporting documentation
- Review of existing transactions for proper cost segregation and allowability
- Make system changes to ensure compliance and streamline ICS development
Contact ABS to get started.