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Federal contractors · Incurred cost · DCAA ICE model

Incurred cost submissions that reconcile and hold up to DCAA.

We prepare your annual incurred cost submission in the DCAA ICE model, reconcile it to your general ledger, catch up overdue years, and support you through DCAA or DCMA review. Our team is based in Ashburn and works with contractors across the DC region.

Forms & standards
FAR 52.216-7FAR 31.2FAR 42.705DCAA ICE modelCertificate of Final Indirect CostsFAR 52.242-4

Serving Northern Virginia, Washington, DC, Maryland.

What we handle

Due six months after year end, every year

If you hold cost-reimbursement, time-and-materials or other flexibly priced contracts, the Allowable Cost and Payment clause (FAR 52.216-7) generally requires a final indirect cost rate proposal within six months after the end of each fiscal year. For a calendar-year contractor, that is June 30.

An adequate submission includes your indirect rate calculations, allocation bases, direct costs by contract, cumulative contract costs, and a signed Certificate of Final Indirect Costs, with unallowable costs removed. Late or inadequate submissions can lead to withheld payments, unilateral rate decisions and delayed contract closeout.

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  • Annual ICS preparationAll required ICE model schedules, including the indirect rate schedules, Schedule H direct costs by contract and Schedule I cumulative costs.
  • General ledger reconciliationTies every pool and base to the trial balance so the submission survives an adequacy review.
  • Unallowable cost reviewIdentification and removal of expressly unallowable costs under FAR Part 31 before you certify.
  • Overdue years catch-upMultiple past years prepared in order, with a plan agreed with your contracting officer.
  • Indirect rate true-upsComparison of provisional billing rates with actual rates and preparation of billing adjustments.
  • DCAA adequacy and audit supportResponses to adequacy checklists, document requests and draft findings.
  • Contract closeoutCumulative cost schedules and quick-closeout support for completed contracts.
  • Subcontractor and teaming dataSupporting schedules for subcontract costs and prime/sub information requests.

Where we help

Common incurred cost situations

First year

Your first ICS

A new cost-type contract and no one in-house who has prepared an ICS before.

Overdue

Several years behind

Contracting officers asking for submissions that were never filed.

Rejected

Found inadequate

A submission sent back by DCAA for missing schedules or reconciliation gaps.

Rates

Billing rates drifted

Provisional rates well above or below actual, creating refunds or underbilling.

Our approach

How the engagement runs.

Collect

Trial balance, payroll, contract list, billing and prior-year submission.

Build

Pools, bases and contract schedules in the ICE model, reconciled to the ledger.

Review and certify

We walk you through unallowable costs and the certificate before you sign.

Submit and support

Submission to DCAA and your contracting officer, then audit liaison.

Questions

Frequently asked

If your question isn't here, call (703) 880-8412 and you'll reach a person.

When is my incurred cost submission due?

Generally within six months after the end of your fiscal year, under FAR 52.216-7. A calendar-year contractor is due June 30. The contracting officer can grant an extension in writing.

What is the DCAA ICE model?

ICE (Incurred Cost Electronically) is DCAA's Excel workbook for preparing the submission. Using it is not strictly required, but it lays out the schedules DCAA expects and makes the adequacy review faster.

What happens if we don't submit on time?

The government can withhold a percentage of billings, set indirect rates unilaterally, and delay closeout of completed contracts. Overdue submissions also tend to attract more audit attention.

Do firm-fixed-price contracts need an incurred cost submission?

Pure firm-fixed-price contracts generally don't, but their costs still count in your indirect rate allocation bases if you also have flexibly priced work.

What are expressly unallowable costs?

Costs the FAR specifically disallows, such as entertainment, alcohol, most interest, fines and penalties, and certain lobbying costs. Including them in a certified submission can trigger penalties under FAR 42.709.

Can you work with our existing bookkeeper or accounting system?

Yes. We work from QuickBooks, Deltek, Unanet and other systems, and can train your team to maintain the pools during the year.

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