RESOURCES FOR GOVERNMENT CONTRACTORS
Valuable sources of information for government contractors
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FREQUENTLY ASKED QUESTIONS (FAQs)
An incurred cost proposal or incurred cost submission is required for Federal contractors who have flexibly priced contracts or subcontracts containing FAR 52.216-7 – Allowable Cost and Payment clause. Need more details on ICS? →Check out the ICS Services Page
An Incurred Cost Submission is required for all federal contractors holding cost-type or time and materials (T&M) contracts. Our ICS Audit experts identified the key 5-ways to start DCAA audit preparation for the incurred cost audit, while preparing the current annual ICS.
- Documentation is critical for a successful Incurred Cost audit outcome.
- Spread the knowledge wealth. Continuity is essential as there will likely be a lag in time between submission and an audit of the incurred cost proposal.
- Prepare supplemental schedules, even though they are not required for a submission to be deemed adequate by DCAA.
- Keep a “working copy“ of the incurred cost proposal. This version of the file should be fully linked and contain all completed supplemental schedules. It will prove invaluable during the incurred cost audit.
- Understand audit expectations. Clear communication and setting of expectations at the beginning of an audit can smooth the process.
→Click to visit our Incurred Cost Submission Page for more on ICS Compliance.
The Office of Federal Procurement Policy (OFPP) has not published the 2020 compensation cap amounts. However, the OFPP did post the formula to be used to calculate the cap. The cap has also been released by DCAA in MRD 20-PSP-004(R) dated August 20, 2020.
- 1/1/22 – 12/31/22: $589,000
- 1/1/21 – 12/31/21: $568,000
- 1/1/20 – 12/31/20: $555,000
- 1/1/19 – 12/31/19: $540,000
Cap is for contracts awarded after June 24, 2014.→Need more information? Check out the ICS Services Page.
Any organization who received single or net CAS-covered awards with a total equaling more than $50 million in its most recent cost accounting period shall submit a Disclosure Statement. Need more information on Cost Accounting Determination and Compliance? →Check out the CAS Services Page
A few things are primary, and, if performed effectively should enhance the opportunity for a low or medium risk determination. First, timely and thorough responses to DCAA’s initial requests for information. Responses need to specifically address the DCAA requests or questions and demonstrate how the response satisfies the related compliance requirement or audit objective. Second, identification and submission of relevant written documentation demonstrating the use and effectiveness of key controls. Written documentation may be policies, procedures, process flows, or other material. And third, a comprehensive business system demonstration or walkthrough of the processes, procedures, and internal controls applicable to the principal components of the business system. Need more information on DCAA Compliance? →Check out the DCAA Services Page Resources
The Federal Acquisition Regulation (FAR) is the regulatory compliance foundation comprised of the rules and requirements that the federal government and government contractors are obligated to comply with when pursuing, executing and performing contracts with the Federal government.
FAR 1.102(a) states “The vision for the Federal Acquisition System is to deliver on a timely basis the best value product or service to the customer, while maintaining the public’s trust and fulfilling public policy objectives. Participants in the acquisition process should work together as a team and should be empowered to make decisions within their area of responsibility.” Need more details on FAR compliance? →Check out the FAR Services Page
Our Experts know Government Contracting regulations can be difficult to manage, but terminology should not be. The GovCon industry uses a lot of acronyms so our team put together some of the most used terms as a quick resource. →Check out the Government Contract Acronyms Resource Sheet