Incurred Cost Proposals
All flexibly-priced (including cost-reimbursement and Time & Material) contracts require the preparation and submission of an annual Indirect Cost Rate Proposal (ICRP). ICRPs are used to settle indirect costs under flexibly-priced contracts and are a major audit focus of the U.S. Government historically, and more recently have received an increased focus due to the aging backlog of the Defense Contract Audit Agency (DCAA). ICRPs must first pass an adequacy checklist by DCAA, or other assigned audit interest, and will be rejected for correction and re-submission if they do not meet the adequacy criteria. Additionally, ICRPs involve all costs of a contractor and, as such, involve technical cost accounting methods that must adhere to a contractor’s established cost accounting practices. We can assist with the accurate and compliant preparation of these submissions for audit and negotiation with your U.S. Government customer.