ICE: The Clock is Ticking

ICE: the Clock is Ticking

Marcelle Green
Marketing Director
VBP OutSourcing, Inc.
pr@vbpoutsourcing.com
410-590-5000

SUMMARY
For most federal contractors, the Incurred Costs Proposal (ICE, or Incurred Costs Electronically) must be submitted in June. The report can be more complicated than filing taxes, so the time to start is now.

Most companies who do work for the federal government are just a few weeks away from submitting a series of government forms that rival corporate tax forms in complexity and importance: the Incurred Cost Submission. Typically filed electronically, and known as ICE (Incurred Costs Electronically), the ICE is comprised of 20-30 linked spreadsheets, known as schedules. Not all companies will have to complete every schedule.

Who has to complete and submit an ICE? Generally, if you have a prime contract with the FAR Allowable Cost and Payment Clause 52.216-7 or you are a subcontractor with flow-down provisions from the prime, you will need to complete an Incurred Cost Submission. In doubt? Check with the Contract Officer (CO).

If your accounting system is DCAA-compliant and conforms with all applicable portions of the Federal Acquisition Regulations (FAR), completing the ICE will be time-consuming, but not exceptionally difficult. (In short, in the ICE you will provide contract detail tied to your income statement with indirect rate calculations, completing detailed schedules to support claimed indirect expenses, occupancy, G&A and cost of money.)

If your accounting system is not DCAA compliant, or you’ve failed a DCAA audit and not corrected all of your deficiencies, completing the ICE will be difficult, and may lead to a DCAA audit. If you’ve never filed an ICE, or your accounting firm isn’t familiar with the ICE, finding experienced help is far better than trying to figure it out yourself. ICE problems can reduce or delay payments on current government contracts, and lead to ineligibility to bid on future contracts.

Government regulations say that the ICE must be submitted within six months of end of the contractor’s (not the government’s) fiscal year. For companies that align their fiscal year with the calendar year, that would mean the ICE is due by the end of June. Extensions are available, but are not automatically granted.

Note: DCAA revises the ICE to correct errors or for other reasons. The latest ICE, along with instructions, is a free download from the publications section of http://www.dcaa.mil. Make sure you have the latest version.


About VBP OutSourcing
VBP OutSourcing is a Maryland-based, professional accounting and marketing firm servicing the growing needs of DoD federal contractors. Whether you have a need for DCAA government cost accounting solutions via QuickBooks and Peachtree software or you need to strengthen the links between your company's brand and the federal government with a strong capability statement, website or brochure, our professional team is ready to assist. We've been helping government contractors gain more federal business and also meet their DCAA compliance requirements for over 13 years. For more information call 410-590-5000 or visit http://www.vbpoutsourcing.com.