{"id":140,"date":"2026-01-14T09:00:54","date_gmt":"2026-01-14T09:00:54","guid":{"rendered":"https:\/\/www.vsinghcpa.com\/blog\/?p=140"},"modified":"2026-04-14T18:49:08","modified_gmt":"2026-04-14T18:49:08","slug":"ics-essentials-3-thresholds-deadlines-for-ics-including-post-july-1-2018-award-rules","status":"publish","type":"post","link":"https:\/\/www.vsinghcpa.com\/blog\/ics-essentials-3-thresholds-deadlines-for-ics-including-post-july-1-2018-award-rules\/","title":{"rendered":"ICS Essentials #3: Thresholds &#038; Deadlines for ICS (Including Post\u2013July 1, 2018 Award Rules)"},"content":{"rendered":"<p><em><strong>GovCon Wednesdays<\/strong><\/em><\/p>\n<p><em><strong>Estimated Read Time: 5 minutes<\/strong><\/em><\/p>\n<p><span data-redactor-style-cache=\"font-size: 16px;\">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 understand.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Core Concept: ICS Thresholds &amp; Due Dates<\/strong><\/h2>\n<h3><strong>ICS Deadline<\/strong><\/h3>\n<p>Contractors must submit their ICS\u00a0<strong>within 6 months after their fiscal year-end<\/strong>, unless they request and receive an extension from their Administrative Contracting Officer (ACO).<br \/>\nThis aligns with FAR 52.216-7, which requires contractors to support allowable incurred costs on an annual basis.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Business Impact: Award Rules &amp; Thresholds<\/strong><\/h2>\n<p>Your slide deck outlines a key threshold:<\/p>\n<h3><strong><span data-redactor-style-cache=\"font-size: 16px;\">Contracts Awarded After July 1, 2018 \u2013 $2 Million Rule<\/span><\/strong><\/h3>\n<p>Contracts awarded after July 1, 2018 with a net value exceeding $2 million require certified cost or pricing data. This requirement applies to all negotiated contracts with an Allowable Cost and Payment clause (not just cost-plus).<\/p>\n<p>This rule increases the level of documentation and rigor required when preparing your ICS.<\/p>\n<h3><strong>Failing to Submit an ICS<\/strong><\/h3>\n<p>If your ICS is late or incomplete, the ACO may issue a unilateral rate determination under FAR 52.216-7. This means:<\/p>\n<ul>\n<li>The government establishes your indirect rates without your input<\/li>\n<li>Rates are typically lower to protect federal funds<\/li>\n<li>You may owe money back if the government determines overbilling<\/li>\n<li>Future billings and cash flow may be affected<\/li>\n<\/ul>\n<p>Late submissions also delay contract closeouts and extend audit timelines.<\/p>\n<h2><strong>What Contractors Should Do<\/strong><\/h2>\n<p>To stay compliant and avoid year-end surprises:<\/p>\n<p>\u2714 Track your fiscal year-end and set internal ICS deadlines<br \/>\n\u2714 Review all contracts for FAR 52.216-7 and cost-reimbursable components<br \/>\n\u2714 Verify if your contract exceeds the $2M threshold (July 1, 2018 rule)<br \/>\n\u2714 Maintain complete documentation to support all incurred costs<br \/>\n\u2714 Request extensions\u00a0<em>before<\/em>\u00a0deadlines if exceptional circumstances arise<br \/>\n\u2714 Prepare indirect rate calculations early to avoid compression<\/p>\n<p>Being proactive reduces audit risk and ensures smoother closeouts.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Key Takeaways<\/strong><\/h2>\n<ul>\n<li>ICS is due six months after fiscal year-end.<\/li>\n<li>Contracts awarded after July 1, 2018 over $2M require certified cost\/pricing data.<\/li>\n<li>Failing to submit allows ACOs to impose unilateral indirect rates.<\/li>\n<li>Early preparation prevents billing issues and supports audit readiness.<\/li>\n<li>ICS timing affects contract closeouts, cash flow, and compliance posture.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Need Help Preparing Your ICS?<\/strong><\/h2>\n<p>VSINGH CPA assists GovCons with ICS preparation, indirect rate modeling, documentation support, and navigating DCAA or agency audits.<\/p>\n<p>\ud83d\udc49\u00a0<strong>Check out our YouTube Shorts<\/strong>\u00a0for quick GovCon Essentials:<\/p>\n<p><a href=\"https:\/\/youtube.com\/shorts\/IHFUscFp2zM\" target=\"_blank\" rel=\"noopener\">https:\/\/youtube.com\/shorts\/IHFUscFp2zM<\/a><\/p>\n<p>&nbsp;<\/p>\n<h1><strong>Coming Up in the GovCon ICS Essentials Series<\/strong><\/h1>\n<p>\u2705\u00a0<strong>ICS Essentials #1:<\/strong>\u00a0What Is an ICS?<br \/>\n\u2705\u00a0<strong>ICS Essentials #2:<\/strong>\u00a0Who Must Submit an ICS?<br \/>\n\u2705\u00a0<strong>ICS Essentials #3:<\/strong>\u00a0Thresholds &amp; Deadlines<br \/>\n4\ufe0f\u20e3\u00a0<strong>ICS Essentials #4:<\/strong>\u00a0ICS Requirements for Time &amp; Materials (T&amp;M) and Mixed Contracts<br \/>\n5\ufe0f\u20e3\u00a0<strong>ICS Essentials #5:<\/strong>\u00a0What\u2019s Included in an ICS? Breakdown of Required Schedules<br \/>\n6\ufe0f\u20e3\u00a0<strong>ICS Essentials #6:<\/strong>\u00a0Who Reviews ICS? DCAA, Agency Auditors &amp; GAO Oversight<br \/>\n7\ufe0f\u20e3\u00a0<strong>ICS Essentials #7:<\/strong>\u00a0Key FAR Clauses You Must Know for ICS Compliance<br \/>\n8\ufe0f\u20e3\u00a0<strong>ICS Essentials #8:<\/strong>\u00a0How to Prepare a Compliant ICS (Documentation &amp; Best Practices)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&#8230; <a class=\"more-link\" href=\"https:\/\/www.vsinghcpa.com\/blog\/ics-essentials-3-thresholds-deadlines-for-ics-including-post-july-1-2018-award-rules\/\">Read More<a><\/p>\n","protected":false},"author":2,"featured_media":223,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"ics-deadlines compliance-timing far-52-216-7","_genesis_custom_post_class":"govcon-blog ics-series deadline-post","_genesis_layout":"","footnotes":""},"categories":[6],"tags":[22,97,101,14,57,18,31,110,55,20],"class_list":{"0":"post-140","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ics","8":"tag-audit-readiness","9":"tag-compliance-deadlines","10":"tag-contract-closeout","11":"tag-dcaa-compliance","12":"tag-far-52-216-7","13":"tag-govcon-accounting","14":"tag-government-contracting","15":"tag-ics-deadlines","16":"tag-incurred-cost-submission","17":"tag-indirect-rates","18":"entry","19":"govcon-blog ics-series deadline-post"},"_links":{"self":[{"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/posts\/140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/comments?post=140"}],"version-history":[{"count":1,"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/posts\/140\/revisions"}],"predecessor-version":[{"id":141,"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/posts\/140\/revisions\/141"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/media\/223"}],"wp:attachment":[{"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/media?parent=140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/categories?post=140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vsinghcpa.com\/blog\/wp-json\/wp\/v2\/tags?post=140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}