A Quick Guide on Incurred Cost Submission

It doesn’t matter how much we try to simplify and systematize the incurred cost submission provision process. It’s a hard-and-cold circumstance that it at all times presents unique challenges for contractors. It is not so common for contractors to be capable of taking the Defense Contract Audit Agency (DCAA) Incurred Cost Electronically (ICE) model, enter their setup data, and import their universal ledger data and, the proposal is complete.

Since DCAA’s announcement of the electronic ICE model, the research procedure for a bulk of contractors is undoubtedly rationalized. At a minimum, most of the contractors can enter their arrangement into the setup as well as use the model to create the framework for an outsized majority of agendas. From this point, most of the contractors will have to make alterations to the model to accommodate their specific cost allocation assembly. Even contractors that use a foundation of allocating overhead pools instead of labor dollars can adapt the agendas with relative ease.

Criterion

The model can work as a checklist and guide for submission planning. This consists of contractors that have:

  • A present, agreed-to incurred cost prototype in use
  • A cost arrangement with elements that is problematic, at best, to acclimatize, such as standard cost.
  • A noteworthy volume of information that makes Excel an insufficient tool

Most Principal Adaptation

The most effective adaptation is possible to be Schedule H, Contract Direct Charges by Contract/Subcontract and Subsidiary Expense Applied at Requested Rates. Here are a few important features:

Firstly, very few medium-to-large administration contractors make use of a “fat” general ledger. The basis of direct contract cost is a work cost or project cost ledger that offers summary journals to the general ledger.

Secondly, contract detail necessitates cost detail at the lowermost level of essential tracking. That is, if a contract needs you to invoice at the sub-task level, you should report costs on Schedule H at the sub-task level for that agreement. The arrangement distinguishes every contract’s reporting level.

Lastly, on Schedule H, agreement detail necessitates display of unallowable direct expenses at the reportable contract level. For instance, a contract with a ceiling on travel would display (by means of the Format delivered in the DCAA ICE model) the additional travel cost on a discrete line demonstrating it is unallowable. All this also helps in indirect rate development and a variety of other matters.

Advertisements