Defining CAS Coverage and What Constitutes a CAS Covered Contract In its simplest sense, a CAS covered contract is any U.S. Government contract that does not meet an exemption from the Cost Accounting Standards (CAS) and includes the CAS clause (FAR 52-230-2 Cost Accounting Standards). While that sounds simple, what is not is navigating whether a …
If a contractor has received a contract containing the Allowable Cost and Payment clause (FAR 52.216-7), the clause requires preparation of an Indirect Cost Rate Proposal (ICRP). The clause is applicable to all cost-type contracts. The proposal also goes by the following industry names “Incurred Cost Proposal” (ICP) and “Incurred Cost Submission” (ICS). The proposal …
Incurred Cost Submission: Everything You Need to Know Read More »
The Defense Contract Audit Agency (DCAA) maintains multiple audit programs to monitor and verify government contractor compliance. DCAA audit programs may occur before, after, or during contract performance through Preaward Audits, Postaward Audits, and Contractor Business System Audits. DCAA is chartered with identifying and evaluating all activities that contribute to or impact proposed or incurred …
For an introduction to incurred cost proposals, please read What is an Incurred Cost Proposal? There are six main steps to an incurred cost proposal: Gather input data from contractor accounting system, and project files Input data into the rate model Ensure reconciliation of the model to cost data Analyze resulting over/under billings by contract …
How to Prepare and Submit an Incurred Cost Proposal Read More »
If you have a US Government contract containing the Allowable Cost and Payment clause (FAR 52.216-7) you are required to submit an annual Incurred Cost Proposal. This clause applies mostly to cost-reimbursable contracts, such as Cost Plus Fixed Fee (CPFF) and Time and Material (T&M). An Incurred Cost Proposal, also known as an Incurred Cost …