Incurred Cost Submission Preparation & Advisory Services
An annual Incurred Cost Submission (ICS), prepared using the Incurred Cost Electronically (ICE) model or an equivalent format, is required for most contractors performing cost-reimbursement, time-and-materials, labor-hour, and other flexibly priced government contracts. Starting at $4,500 for incurred cost submission preparation.
Incurred Cost Submission (ICS/ICE) Preparation & Advisory Services
An annual Incurred Cost Submission (ICS), prepared using the Incurred Cost Electronically (ICE) model or an equivalent format, is required for most contractors performing cost-reimbursement, time-and-materials, labor-hour, and other flexibly priced government contracts. GovCon advisory services help contractors prepare accurate, complete, and audit-ready submissions that comply with FAR 52.216-7, FAR Part 31, and DCAA guidance — without providing an attest opinion or assurance report. **The ICS Preparation Process** **Initial Engagement & Compliance Assessment** • Determine ICS filing requirements • Review applicable government contracts • Evaluate contract clauses and indirect rate requirements • Identify submission deadlines • Assess accounting system readiness • Develop an ICS preparation timeline **Financial Records Review** • Review trial balance and general ledger • Verify job cost records • Review payroll and labor distribution • Analyze indirect cost pools • Review contract billings • Verify reconciliations between accounting records and financial statements **FAR Allowability Review** • Review expenses for FAR Part 31 compliance • Identify allowable and unallowable costs • Reclassify unallowable expenses • Review executive compensation limitations • Analyze travel and entertainment expenses • Document cost treatment decisions **Indirect Cost Rate Development** • Calculate final Fringe rates • Calculate final Overhead rates • Calculate final G&A rates • Calculate Material Handling rates, when applicable • Reconcile provisional versus actual indirect rates • Document allocation methodologies **Contract Cost Validation** • Verify direct labor charges • Review subcontract costs • Validate direct material costs • Review other direct costs (ODCs) • Reconcile billed costs to accounting records • Verify costs accumulated by contract **ICE Model Preparation** Preparation and completion of the required schedules within the ICE model or equivalent submission package includes: Schedule A – Indirect Expense Rates Schedule B – General & Administrative Expenses Schedule C – Overhead Expenses Schedule D – Occupancy and Facilities Costs (if applicable) Schedule E – Claimed Direct Costs by Contract Schedule F – Contract Information Schedule G – Cumulative Direct and Indirect Costs Schedule H – Government Participation Schedule I – Cumulative Claimed and Billed Costs Schedule J – Subcontract Information Schedule K – Summary of Claimed Costs Schedule L – Payroll Reconciliation Schedule M – Decisions and Agreements Schedule N/O – Certificate and Supplemental Information (as applicable) **Reconciliations & Quality Review** • Reconcile all ICE schedules to the general ledger • Tie payroll records to labor distribution reports • Verify indirect rate calculations • Reconcile billed versus claimed costs • Validate government participation calculations • Perform internal quality control reviews **Audit Readiness Review** • Organize supporting documentation • Prepare reconciliation workpapers • Review accounting policies • Verify indirect rate support • Assemble audit-ready documentation • Identify and resolve potential DCAA questions before submission **Submission Assistance** • Review the completed submission with management • Assist with electronic submission procedures • Verify completeness of required schedules • Confirm supporting documentation is organized • Prepare management certification package • Coordinate submission with the contracting agency, when requested **Post-Submission Support** • Respond to DCAA information requests • Assist with audit preparation • Prepare reconciliation schedules • Support management during DCAA discussions • Develop corrective action recommendations, if needed • Assist with final indirect rate negotiations
Incurred Cost Submission Services Include
Comprehensive ICS support from initial planning through post-submission audit assistance.
Avoid rate rollbacks
A DCAA-approved submission means your final indirect rates stick. No renegotiation, no surprises.
Faster closeout on contracts
A compliant ICS clears the path to final payment and contract closeout. No lingering open items.
Defendable audit trail
Every cost pool and allocation base is documented, sourced, and ready for DCAA review at any time.
Reduced DCAA follow-ups
Complete, accurate schedules mean fewer clarification requests. DCAA moves faster when the data is clean.
Confidence in rate negotiation
Know your provisional and final rates are backed by real data, not estimates. Negotiate from a position of proof.
Why GovCon Interactive for ICS Preparation
GovCon advisory support works alongside your accounting team to prepare complete, accurate, and audit-ready Incurred Cost Submissions. The focus is on practical consulting, detailed reconciliations, and compliance guidance throughout the process — from planning and ICE schedule preparation to audit support and indirect rate reconciliation. The goal: a well-documented, defensible submission while avoiding costly errors and improving long-term compliance. **Benefits of Professional ICS Preparation** • Improve accuracy of annual incurred cost submissions • Reduce the risk of DCAA audit findings • Ensure compliance with FAR Part 31 and contract requirements • Support timely submission of annual ICS packages • Strengthen documentation and internal controls • Minimize delays during DCAA audits • Improve confidence in indirect cost rate calculations • Reduce management's administrative burden • Position the company for successful contract performance and future growth **Common Issues Resolved** • Incorrect indirect cost pool allocations • Unallowable costs included in claimed expenses • Payroll and labor distribution discrepancies • General ledger and ICE schedule reconciliation issues • Incomplete contract cost records • Improper billing adjustments • Missing supporting documentation • Inaccurate provisional rate reconciliations • Government participation calculation errors • Prior-year audit findings and corrective actions **Advisory Disclaimer:** Services provided are consulting and management advisory services designed to assist management in preparing and organizing an Incurred Cost Submission. GovCon Interactive LLC does not perform audits, examinations, reviews, or other attest engagements, and does not issue an independent opinion or assurance report on the submission. This approach allows for implementation, compliance, and audit-readiness assistance without performing attest services.
What a professional ICS delivers
From first-pass readiness to post-submission defense, a professionally prepared ICS saves time, money, and audit exposure.
SF 1408
First-pass readiness
Designed to pass the DCAA pre-award accounting system review on the first attempt.
Single
Point of contact
One specialist handles your compliance from system design through final rate negotiation.
100%
FAR Part 31 alignment
Every incurred cost submission built to match FAR Part 31 cost principles exactly.
Incurred cost submission support from Sarasota
One call starts your path to a compliant incurred cost submission and a clean DCAA audit. **Advisory Disclaimer:** Services provided are consulting and management advisory services designed to assist management in preparing and organizing an Incurred Cost Submission. GovCon Interactive LLC does not perform audits, examinations, reviews, or other attest engagements, and does not issue an independent opinion or assurance report on the submission. This approach allows for implementation, compliance, and audit-readiness assistance without performing attest services.