Wednesday, April 5, 2017
Spring is Here - Prepare for ICE
PNWC would like to remind all Government contractors of an important deadline - annual incurred cost submissions are due on June 30th (or six months after fiscal year end for contractors whose fiscal years do not coincide with calendar years). Preparation for this annual ritual, commonly referred to as "ICE" meaning "Incurred Cost Electronically" after DCAA's Excel-based interpretation of the requirements of FAR 52.216-(d)(2)(iii), should begin now.
DCAA's (Defense Contract Audit Agency) ICE model is ponderous to comprehend and complete because DCAA has built it to accommodate many different situations and accounting systems, and indirect rate structures. That is why many contractors and their consultants, including PNWC, have developed streamlined versions specific to individual contractors.
Contractors need to ensure that their ICE submissions are adequate. DCAA will perform an "adequacy review" of each submission. Failing an adequacy review will certainly slow the process for settling indirect rates and if the deficiencies are egregious, could result in a higher risk category, meaning an increase in the probability that the submission will be audited. DCAA has developed and published an Incurred Cost Proposal Adequacy Checklist to assist contractors in preparing adequate proposals.
PNWC's professionals have been assisting contractors in preparing annual Incurred Cost Proposals for more than 10 years. We can help reduce the stress associated with Incurred Cost Submissions. Give us a call to reserve your slot.