We help contractors prepare, review, submit, and defend their ICS
For government contractors, the Incurred Cost Submission (ICS) is more than an annual requirement, it is a critical compliance milestone that directly impacts cash flow, contract closeout, and audit risk.
We help contractors prepare, review, submit, and defend their ICS with precision.
Whether you are a growing small business or an established prime contractor, our team ensures your submission is compliant, defensible, and aligned with federal regulations.
Our Approach is
Simple
To help contractors move from reactive ICS compliance to proactive audit-ready confidence.
What Is an Incurred Cost Submission?
An Incurred Cost Submission is an annual report required under FAR 52.216-7 (Allowable Cost and Payment) for contractors holding cost-reimbursable contracts.
The submission reconciles:
- Actual direct and indirect costs incurred during the fiscal year
- Provisional indirect billing rates applied throughout the year
- Final indirect cost rates to be negotiated with the government
The ICS provides transparency into how costs were accumulated, allocated, and billed, forming the basis for establishing final indirect rates.
Most contractors must submit their ICS within six months after the end of their fiscal year.
Iuvo becomes your compliance partner, bringing structure, accuracy, and confidence to your Incurred Cost Submission process.
Why ICS Compliance Matters
An inadequate or late submission can create significant operational and financial risk.
Regulatory Exposure
Incomplete or noncompliant submissions may be rejected during adequacy review, delaying rate negotiations and increasing audit scrutiny.
Cash Flow Delays
Final indirect rates cannot be settled until the ICS is accepted, potentially impacting contract closeout and reimbursements.
Audit Risk
DCAA or other cognizant audit agencies rely on the ICS to evaluate allowability, allocability, and reasonableness of costs.
Reputation & Growth
Strong compliance history supports future contract awards and strengthens relationships with Contracting Officers.
Who We Support
Our ICS services are designed for:
- Small and emerging government contractors
- Prime contractors with cost-type portfolios
- Contractors transitioning from fixed-price to cost-reimbursable contracts
- Organizations implementing new accounting systems
- Companies preparing for their first DCAA review
Whether your accounting platform is Deltek Costpoint, Unanet, QuickBooks (GovCon-configured), or another compliant system, we integrate seamlessly into your environment.
Common Challenges We Help Solve
We address these issues proactively, before they become compliance concerns:
- Indirect pools not reconciling to financial statements
- Misclassified or unallowable costs
- Inconsistent allocation bases
- ICE model errors
- Inadequate documentation trails
- Late preparation timelines
- Prior year audit findings
Our Incurred Cost Submission Services
Iuvo integrates with your team to deliver structured, compliant, and defensible ICS execution, from preparation through audit resolution.
Full ICS Preparation
We manage the entire submission process, including:
- Preparation of required schedules and supporting documentation
- Development of indirect cost rate calculations
- ICE model population and validation
- Reconciliation to general ledger and financial statements
- Executive certification coordination
Our approach ensures all schedules tie out, supporting documentation is audit-ready, and cost pools are properly structured.
ICS Review & Adequacy Assessment
If your internal team prepares the submission, we provide independent compliance reviews, including:
- DCAA adequacy checklist alignment
- Indirect rate validation
- Allowability testing
- Schedule cross-verification
- Risk identification and remediation guidance
This service is ideal for contractors seeking a second layer of assurance before submission.
Indirect Rate Strategy & Analysis
Your ICS is not just compliance, it is financial strategy.
We help you:
- Analyze rate fluctuations
- Identify unallowable costs
- Evaluate pool structure efficiency
- Improve allocation methodologies
- Plan provisional billing rates for the upcoming year
Our team ensures your indirect rate structure supports both compliance and profitability.
Audit Support & Response Management
If your ICS is selected for audit, we stand alongside your team.
Our support includes:
- Audit request coordination
- Preparation of supplemental documentation
- Response drafting
- Question resolution
- Negotiation preparation for final rate settlements
We help reduce disruption and maintain a professional, organized audit posture.
Process Improvement & Readiness
Strong ICS outcomes begin long before year-end.
We work with contractors to:
- Strengthen accounting system controls
- Improve cost segregation processes
- Establish documentation standards
- Develop monthly reconciliation procedures
- Create ICS preparation timelines
Our goal is to transform ICS from a reactive annual burden into a controlled, predictable process.
Our ICS Preparation Process
We follow a structured, transparent methodology:
01
Planning & Data Assessment
We review contract types, provisional rates, indirect structures, and accounting systems.
02
Data Compilation & Reconciliation
General ledger data, labor records, subcontract costs, and indirect pools are reconciled and validated.
03
Schedule Development
All required schedules are prepared, cross-referenced, and tied to supporting documentation.
04
Quality Review & Compliance Check
Internal review ensures alignment with regulatory requirements and adequacy standards.
05
Submission & Ongoing Support
Final submission is completed, and post-submission support is available if needed.
Let’s Simplify Your Incurred Cost Submission
ICS preparation doesn’t have to be stressful or reactive.
Iuvo Systems brings over 17 years of specialized expertise in outsourced accounting & financial services, data analytics & reporting, enterprise system solutions, and GovCon staffing for government contractors and agencies.
HQ: Columbia, MD
Office: Atlanta, GA
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