Incurred Cost Proposal
Prepare an Accurate, Audit-Ready Incurred Cost Submission
Gov-Con Solutions helps government contractors prepare Incurred Cost Submissions (ICE), Incurred Cost Proposals, and Final Indirect Cost Rate Proposals in accordance with applicable government contract requirements, including FAR 52.216-7.
Our team works with your accounting records, contract costs, indirect rates, labor, billings, and supporting documentation to prepare an organized and supportable submission designed for DCAA adequacy review and audit readiness.
FAR 52.216-7 requires an adequate final indirect cost rate proposal for applicable contracts and specifies the supporting schedules/data.
Who Needs an Incurred Cost Submission?
Not every government contractor is required to prepare an Incurred Cost Submission.
The requirement generally applies when a contractor has applicable cost-reimbursement or other flexibly priced contracts containing FAR 52.216-7, Allowable Cost and Payment.
For contractors subject to this requirement, an adequate Final Indirect Cost Rate Proposal generally must be submitted within six months after the end of the contractor’s fiscal year.
Gov-Con Solutions can help contractors determine the applicable requirements, prepare the necessary schedules, reconcile the submission to the accounting records, and prepare for government review.
More Than Completing an ICE Spreadsheet
Preparing an Incurred Cost Submission involves much more than entering numbers into the DCAA ICE Model.
The costs and rates claimed in the submission must be supported by the contractor’s underlying accounting records.
Gov-Con Solutions helps reconcile the relationship between your:
- General Ledger
- Job cost records
- Direct contract costs
- Labor distribution
- Fringe, Overhead and G&A pools
- Indirect cost allocation bases
- Contract billings
- Claimed final indirect rates
Our goal is to identify inconsistencies and reconciliation issues before the submission is provided to the Government.
Our Incurred Cost Submission Services
- Accounting & General Ledger Review
Review accounting records and supporting financial data to help ensure costs are properly classified and supported before preparation of the ICE submission. - Final Indirect Rate Calculation
Calculate and reconcile actual Fringe, Overhead, G&A, and other applicable indirect rates using the contractor’s actual cost experience for the fiscal year. - Contract Cost Reconciliation
Reconcile direct and indirect costs by applicable government contract and subcontract to the contractor’s accounting records. - DCAA ICE Schedule Preparation
Prepare applicable schedules and supporting information required for an adequate Final Indirect Cost Rate Proposal. - ICE Adequacy Review
Review the completed submission for mathematical accuracy, consistency, reconciliation, required schedules, and supporting documentation before submission. - DCAA Audit Support
Assist contractors with DCAA questions, documentation requests, reconciliations, and follow-up related to their Incurred Cost Submission.
DCAA ICE Model Preparation
Gov-Con Solutions prepares Incurred Cost Submissions using the applicable DCAA ICE (Incurred Cost Electronically) Model and reconciles the schedules to the contractor’s accounting records and supporting documentation.
DCAA describes its ICE Model as a tool for preparing incurred cost proposals in accordance with FAR 52.216-7. DCAA currently offers its newer Microsoft Power Query ICE Model Version 1.08, released July 2026, as well as the Visual Basic model, and states that either version is acceptable for submission.
What's Included in an Incurred Cost Submission?
Depending on the contractor and applicable requirements, an adequate Final Indirect Cost Rate Proposal can include schedules supporting:
- Claimed indirect expense rates
- G&A expenses
- Overhead expenses
- Indirect cost pools and allocation bases
- General Ledger reconciliation
- Direct costs by contract and subcontract
- Government participation
- Cumulative costs claimed and billed
- Subcontract information
- T&M and Labor-Hour contract information
- Payroll-to-labor distribution reconciliation
- Certification of final indirect costs
- Contract closeout information
These categories closely track the supporting data identified in FAR 52.216-7 for an adequate final indirect cost rate proposal.
Behind on Your Incurred Cost Submissions?
Submitting an Incurred Cost Proposal may be only the beginning of the process.
The Government may review the submission for adequacy, request additional supporting documentation, and audit claimed costs and indirect rates. FAR 42.7 provides for the Government’s review of final indirect cost rate proposals and, where applicable, audit and negotiation of final rates.
Gov-Con Solutions can continue supporting contractors after submission by helping respond to DCAA requests, reconcile schedules to accounting records, provide supporting documentation, and prepare for the indirect cost rate audit process.
From ICE Preparation Through DCAA Audit Support
Don’t let multiple fiscal years create a larger compliance problem.
Gov-Con Solutions can assist contractors that have delinquent or multiple outstanding Incurred Cost Submissions by organizing the accounting records, calculating final indirect rates, preparing the applicable ICE schedules, and developing a plan for bringing outstanding fiscal years current.
Why Gov-Con Solutions?
An Incurred Cost Submission requires more than knowledge of an Excel template. It requires an understanding of government contract accounting, indirect cost allocation, FAR cost principles, contract billing, labor distribution, and DCAA expectations.
Gov-Con Solutions brings these disciplines together to help contractors prepare supportable annual submissions and remain prepared for government review.
- Government contractor accounting specialists
- 20+ years supporting government contractors
- DCAA and FAR compliance expertise
- Indirect rate development and reconciliation
- DCAA ICE Model preparation
- Accounting record and contract cost reconciliation
- DCAA audit readiness and support
Need Help With Your Incurred Cost Submission?
Whether you are preparing your first ICE submission, completing your annual Final Indirect Cost Rate Proposal, catching up on prior fiscal years, or responding to DCAA questions, Gov-Con Solutions can help.
Prepare your submission with confidence—and be ready to support it when DCAA comes calling.
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