Friday, June 14, 2013

Incurred Cost Proposal Adequacy Checklist

We wouldn't want to let a week go by without telling you about another Government checklist. As we approach the due date for submitting incurred cost proposals (June 30th for calendar year contractors) it is important to remember that incurred cost proposal submissions passing DCAA Incurred Cost Adequacy Checklist, have reduced likelihoods of being audited. For proposals under $15 million, and assuming no history of "significant" questioned costs, that likelihood is only five percent. See our previous coverage on this topic. Now, that's incentive for getting it right the first time.

The latest version of the incurred cost adequacy checklist, Version 2.2 from April 2012 can be downloaded here.

The checklist steps through each of the required schedules, 'A through 'O and asks a series of questions for each schedule. These schedules correlate to the final incurred cost proposal requirements of FAR 52.216-7(d)(1)(iii). Many of the questions deal with internal consistencies within the proposal itself. For example,one of the questions pertaining to Schedule A is whether amounts shown on that Schedule can be traced to the corresponding amounts on Schedules B, C, D, F, and H.

We believe that this checklist should be part of each contractor's proposal preparation process. It has the potential for saving a lot of time in the long run.

If you're frustrated with the complexities of DCAA's ICE package (Incurred Cost Electronically), you might want to look into our significantly improved and fully compliant version of the model. We call it SPICE and its available for $250 which includes one hour of technical support. Call David Koeltzow ('Kelso') 866-849-4887 Ext. 5 for more information.

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