What Do You Need To Know About Incurred Cost Submissions All federal contractors have to provide Incurred Cost Submissions or ICS. It’s especially true for the contractors holding cost-type or time and materials contractors. ICS is a universal requirement, regardless of agency customer. Every contract requiring ICS will include the “Allowable Cost & Payment Clause” of the Federal Acquisition Regulations and the “T&M Payment Clause.” If you wish to learn more about the subject, you should continue reading.
ICS has several names, including incurred cost electronic submission, final indirect rate proposal, incurred cost proposal, indirect cost rate submission, ICP, ICES, and others. The name isn’t of any consequence. It’s just the mechanism for the true-up of your actual indirect expenses to the indirect costs billed provisionally for one contractor in one fiscal year. ICS covers several broad areas. When it comes to submitting your expenses, you have to do it six months after the end of a fiscal year. Therefore, if your fiscal year ends on 12/31, your submission won’t be due later than the following June 30 for each fiscal year in which you incur costs under an applicable type of contract. You have to make exclusive considerations, especially when circumstances like acquisitions, mergers, or changes in fiscal years are present.