Redstone - DCAA ICE Model Version 2.0.1f (October 2016)Contractors subject to FAR 52.216-7, “Allowable Cost and Payment” clause are required to submit, to the cognizant contracting officer and DCAA auditor, an electronic final indirect cost rate proposal in accordance with FAR 42.705-1(b)(1) within six months after the end of the contractor’s fiscal period. This final indirect cost rate submission will primarily be used to establish final indirect rates; however, it has evolved to also serve the purpose of establishing total allowable (direct and indirect) contract costs. DCAA has recently released a new version of the ICE Model, which is the electronic version of the “Model Incurred Cost Proposal” which provides contractors with a standard ICE submission for preparing adequate incurred cost proposals in accordance with FAR 52.216-7, “Allowable Cost and Payment.” This version, 2.0.1f (released in October 2016), may be downloaded from the DCAA website. There were no computational changes to the newly released version; only minor changes to headings and abbreviations. The following are the changes:

  • Supplemental Schedule C, “Release to Prime” (column F) heading change; added “Yes/No” so that required entry would be self-explanatory.
  • Schedule H removed occurrences of the abbreviation “Var” and the word “Various.”

SUPPPLEMENTAL C

In August 2015, a note was added to Supplemental C to clarify what information is to be entered on this schedule. It seems DCAA is taking this schedule a step further in order to better clarify one column of this schedule. Supplemental Schedule C requires the identification of prime contracts under which the contractor performs as a subcontractor. This information is required at the pricing level (e.g. delivery order, CLIN) for all subcontract efforts (e.g. cost-type, incentive contracts, T&M/LH, FFP, etc.). This is different from Schedule J, which requires identification of subcontracts you have awarded to companies for which you are the prime or upper-tier contractor, including inter-divisional effort. Supplemental C requires contractors to include all contracts in which the company is a subcontractor, no matter the prime contract type. Therefore, firm fixed price and commercial contracts in which the company is a subcontractor would be included on this schedule. It is important to note that supplemental information is not required to determine if an indirect cost rate proposal is adequate, but may be required during the audit process. It’s debatable whether or not providing subcontract information on a fixed-price prime contract serves any meaningful purpose, but this does not prevent DCAA from requesting Supplemental Schedule C.

SCHEDULE H

Schedule H, which is the Schedule of Direct Costs by Contract/Subcontract and Indirect Expenses Applied at Claimed Rates, had minor revisions to the title of each section. The “Var” was excluded from the Time & Material, Fixed Price, and Commercial Work section. Schedule H requires contracts be grouped by contract type. Cost type, other flexibly priced time and material, fixed price, and commercial work are the sections provided by DCAA ICE Model. Costs per contract are shown by each direct cost element and indirect rates are applied to calculate the total costs per contract. Again, no computation change--just cleanup of contract type section titles.

No computational or functions changes have been made to the ICE Model since June 2012. Schedule J was revised in version 2.0.1e (released in December 2015) requiring additional information, such as prime contract value and the subcontractor DUNS number. These are all minor changes, but information that DCAA will expect to see before it will audit your Indirect Cost Rate Proposal.   For those considered low-risk, this is information that DCAA will insist on, even though they accept your indirect rates as proposed.Whitepaper: Audit World's Biggest Myths Download Now

Written by Kimberly Basden

Kimberly Basden Kimberly is a Managing Consultant with Redstone Government Consulting, Inc. based in our Huntsville, Alabama office. Her areas of expertise include working with government contract accounting and contracting issues and audit. Kimberly specializes in assisting government contractors in the unique accounting, pricing, proposal preparation, and compliance requirements of the U.S. Government. Professional Experience Kimberly’s experience includes preparation of complex incurred cost submissions, compliant accounting infrastructure, preparation and evaluation of policies and procedures, contract closeout process, developing provisional indirect rate budgets, monitoring actual indirect rates, and providing audit support to government contractors. Her primary focus is working pro-actively in preparing small contractors for government contract challenges as well as resolving DCAA issues. Kimberly has almost ten years of experience assisting clients with Federal Acquisition Regulations (FAR) and Cost Accounting Standards (CAS) best practices and compliance. She works with government contractors to comply with critical Federal Acquisition Regulations (FAR) requirements related to cost accounting and proposals. Her sundry experience with various government contract issues and successful resolutions provides insight that benefits our clients. Prior to joining Redstone Government Consulting, Inc., Kimberly specialized in assurance and advisory services with a regional firm (Jackson Thornton), working as a staff accountant conducting compilations and reviews, auditing financial statements and assisting with litigations. Education Kimberly earned a Bachelor of Science degree in Commerce and Business Administration from The University of Alabama in 2007. Affiliations National Contract Management Association Women in Defense

About Redstone GCI

Redstone Government Consultants are a team of the most senior industry veterans and the brightest new talent in the industry. Many have held senior government positions including leadership roles in the DCAA. Our new talents bring significant accounting and software experience along with fresh perspectives, inspiration and energy to our team. Through our leadership and combined experience, we provide a unique perspective, bringing both government and contractor proficiencies to bear and ensuring rock-solid government compliance for our clients.

Topics: Incurred Cost Proposals, DCAA Audit Support