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 […]
Indirect Cost Rate Preparation
An Incurred Cost Proposal, also known as an Incurred Cost Submission (ICS), or Indirect Cost Rate Proposal (ICRP), takes all the cost accounting data from a contractor’s expense accounts to calculate the actual indirect rates for the cost accounting period (the fiscal year).
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Under cost-type contracts, contractors utilize a provisional billing rate throughout the year. The intention of the Incurred Cost Proposal is to true-up a contractor’s provisional billing rate to actual under its cost-type contracts. The actual rate is compared to what was billed and the calculated over/underbill is either credited back to the government or invoiced, respectively.
As required by the Federal Acquisition Regulation (FAR), Incurred Cost Submissions must be submitted within 6-months of the contractor’s fiscal year end. For example, a contractor who’s fiscal year is the calendar year, must submit its Incurred Cost Proposal by June 30th of the following year. While it is not recommended, contractors may request an extension for submission of their rates, which may or may not be honored by DCAA.
ICRP Services
Our team is skilled and experienced in navigating ICRP awards and the potential pitfalls that come with them.
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).
Indirect Cost Rate Structuring & Evaluation
The cost accounting methods used in your indirect rate structure drive forward pricing rates, provisional billing rates, and have the potential to impact contractor recovery of costs on all contracts. We can help you design a new indirect cost rate structure or evaluate your existing indirect cost rate structure with a focus on optimal cost recovery and compliance with applicable U.S. Government regulations including Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS).
Provisional Billing Rates
Establishing Provisional Billing Rates are important for cost-type contracting. We will work with you to tranlsate your accounting data into logical forecasts to develop both reasonable and strategic rates. Our goal is develop rates that minimize potential over/under billings on your cost-type contracts, but that meet your organizational objectives.
Negotiated Indirect Cost Rate Agreement (NICRA)
Whether you are a nonprofit or for-profit organization we can help you to develop or review your NICRA for existing or upcoming grants and cooperative agreements. We understand the compliance requirements that come with establishing indirect rates under 2 CFR 200, and grant programs under a multitude of Government Agency.
AASHTO Overhead Rates
If your organization is required to calculate and submit AASHTO Overhead Rates, RKI can help ensure compliance with AASHTO requirements, and help you navigate any subsequent audits.
ICRP Frequently Asked Questions
Our team is skilled and experienced in navigating ICRP awards and the potential pitfalls that come with them.
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries
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