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Incurred Cost Submissions (ICS)

Government contractors that are awarded cost-reimbursable and time-and-materials contracts will need to submit an adequate final indirect cost rate proposal to their cognizant federal agency official (government representative) and auditor. This proposal is typically called an Incurred Cost Submission (“ICS”), and its purpose is to calculate actual indirect cost rates, enabling review and approval of the rates by the government. Once the indirect cost rates are approved, the contractor is required to update its contract billings with the newly approved rates to the government within 60 days. In cases where contracts are physically complete, the contractor is required to submit a completion invoice to reflect the settled amounts and rates within 120 days.

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