Incurred Cost Proposals (ICPs) or Incurred Cost Estimates (ICEs) Consulting Services

Preparation of timely and accurate required incurred cost submittals, usually referred to as incurred cost estimates (ICEs) or incurred cost proposals (ICPs), is often confusing and quite time consuming, especially for the busy accounting staff that does not have a lot of experience with preparing incurred cost proposals.  The Defense Contract Audit Agency has established precise format requirements, which frequently are modified, where recent changes to the Federal Acquisition Regulation have made that format a regulatory requirement.  Proper ICE preparation requires not only completion of specified exhibits but calls for considerable judgment to ensure the best possible results of incurred cost proposals are achieved.  DCAA is very strict in its requirements that specific exhibits in its incurred cost proposal reconcile with others.

Our staff of former DCAA auditors and supervisors, contractor accounting compliance executives, CFOs/controllers and division accounting executives have contributed to our preparation of literally hundreds of incurred cost proposals.  If our client wants us to prepare the ICE proposal we can complete the incurred cost proposals in considerably less time than your busy staff can.  If our clients prefer us to review their work then our broad experience can allow several perspectives.  If the incurred cost proposals show our client overbilled the government then we will offer alternative approaches to mitigate having to pay back the government.  If it turns out the incurred cost proposals show our client underbilled the government then we present alternatives on how to present the incurred cost proposal and what steps are needed if payments are desired.  DCAA auditors are now required to be transparent in their communications during the audit so we will make ourselves available to apply our knowledge of how DCAA conducts its audits to identify issues as they arise and proactively address them to minimize questioned costs in the final report.  We will also be available to address unfair questioned costs in written and verbal formats intended for auditors, their supervisors and management as well as ACOs.

ICE consulting services include:

• Review of clients’ incurred cost proposals
• Formulate strategies to obtain the best incurred cost proposal results
• Prepare incurred cost proposals
• Be available during the audit to proactively address issues as they arise.
• Respond to questioned costs and other issues in written and verbal formats
• Help negotiate positions with DCAA management and Administrative Contracting Officers