Most companies doing business of $500,000 or more with the Department of Defense must prepare a Cost-Incurred Proposal (CIP) once a year. The Defense Contract Audit Agency DCAA) provides a set of spreadsheets called Incurred Cost Electronic (ICE) to submit the CIP, so the CIP is sometimes called the ICE report. Based on comments from DCAA auditors, plus personal experience with many CIPs, here is a list of ICE tips for those companies filing or fixing their own ICE reports:

• Explain any and all adjustments in Schedules.
• Make sure all Schedules reconcile with each other.
• Submit on time. The deadline for companies with a calendar fiscal year is June 30. Submitting on time opens the door to direct billing, which can reduce payment time on invoices by several weeks. Submitting late can bring much more stringent controls, increasing your unbillable overhead burden.
• CFO or above must sign Schedule N. Don’t overlook this signature page. President or Vice President signature is acceptable, but not an administrative assistant.
• Submit Schedule T. This schedule, compensation of executives, is listed as an optional schedule but DCAA in Chicago is now requiring it.
• Have written guidelines for indirect cost determinations. Companies may have different rules for determining overhead and G&A rates. If your rules are clear and well documented, you will make fewer errors in the ICE report and you will have an easier time during an audit.

If you are interested in finding out how Garton Consulting Services can free you from the burden of Government paperwork, remember that initial consultations are always free of charge. Email, phone (217) 355-3559, or click below.