GovCon Wednesdays Estimated Read Time: 5 minutes Preparing a compliant Incurred Cost Submission (ICS) requires more than filling out schedules, it requires accurate documentation, consistent accounting practices, and strong compliance with FAR cost principles. This final installment in the ICS Essentials Series explains the best practices contractors should follow to assemble an accurate and audit-ready ICS package. All recommendations are based on your ICS slide deck guidance. Core Concept: What… Read More
ICS
ICS Essentials #7: Key FAR Clauses You Must Know for ICS Compliance
GovCon Wednesdays Estimated Read Time: 5 minutes Every Incurred Cost Submission is built on a foundation of key Federal Acquisition Regulation (FAR) clauses. These clauses define what costs are allowable, how they must be documented, and which contracts require ICS filing. Understanding these FAR requirements is essential for preparing a compliant ICS and avoiding questioned or disallowed costs. This article outlines the clauses highlighted in your ICS slide deck. Core… Read More
ICS Essentials #6: Who Reviews ICS? DCAA, Agency Auditors & GAO Oversight
GovCon Wednesdays Estimated Read Time: 5 minutes Once your Incurred Cost Submission (ICS) is submitted, it undergoes review by federal audit organizations responsible for ensuring taxpayer dollars are used appropriately. Depending on the agency you support, your ICS may be audited by DCAA, an Inspector General office, or another federal audit branch. This installment explains who reviews ICS packages and the standards they must follow. Core Concept: Who Reviews ICS?… Read More
ICS Essentials #5: What’s Included in an ICS? Breakdown of Required Schedules
GovCon Wednesdays Estimated Read Time: 5 minutes The Incurred Cost Submission (ICS) is more than a single document, it is a structured package of schedules designed to reconcile your fiscal year’s direct and indirect costs and certify that all claimed costs comply with FAR 52.216-7. These schedules help the government determine whether your billed costs were reasonable, allowable, and allocable, and they support final indirect rate determinations and contract closeouts. This installment… Read More
ICS Essentials #4: ICS Requirements for Time & Materials (T&M) and Mixed Contracts
GovCon Wednesdays Estimated Read Time: 5 minutes One of the most common ICS misunderstandings in GovCon comes from Time & Materials (T&M) and mixed contracts. Many contractors assume T&M or partially fixed-price agreements do not require an ICS but under FAR rules, ICS requirements depend on whether the contract reimburses actual allowable costs. This installment explains exactly when T&M and mixed contracts trigger ICS filing. Core Concept: When T&M… Read More
ICS Essentials #3: Thresholds & Deadlines for ICS (Including Post–July 1, 2018 Award Rules)
GovCon Wednesdays Estimated Read Time: 5 minutes For contractors with flexibly priced contracts, timely submission of the annual Incurred Cost Submission (ICS) is required under FAR 52.216-7. Missing the deadline can slow down contract closeouts, trigger increased audit scrutiny, or even result in the government setting your indirect rates for you through a unilateral determination.This part of the ICS Essentials Series explains the key thresholds and deadlines that GovCons must… Read More