Estimated Read Time: 6 mins Takeaways Point 1: The Immediate Fix. No software platform is “DCAA-approved” right out of the box. True compliance requires intentionally structuring your general ledger around distinct cost objectives and logical allocation bases under DFARS 252.242-7006. Point 2: The Compliance Risk. Failing to isolate unallowable costs or failing to reconcile your job-cost ledger with your general ledger creates structural audit risk. Under DFARS 252.242-7005, an unoptimized system with material weaknesses can trigger… Read More
FAR 52.216-7
What Triggers a DCAA Audit? The 8 Most Common Triggers GovCons Should Watch For
GovCon Wednesdays Estimated Read Time: 5 minutes DCAA audits usually don’t happen “out of nowhere.” In most cases, an audit is triggered because the Government needs independent audit support to make a contract decision (award, rates, billing, or closeout), or because your contract type and clauses require specific compliance steps. This post breaks down the most common DCAA audit triggers and what government contractors can do to stay audit-ready without overbuilding processes. Why… Read More
ICS Essentials #8: How to Prepare a Compliant ICS (Documentation & Best Practices)
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 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 #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 #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