Compliance Blog

Government contractors gain a competitive advantage with a well-managed budgeting process. A budget provides a financial blueprint for the new year, establishes a plan for recovery of indirect costs through contract pricing, and establishes support for provisional indirect rate proposals.

Government contractors subject to FAR 52.216-7 are required to submit an adequate final indirect cost rate proposal within six months following the contractor’s fiscal year end. Learn the purpose of an Incurred Cost Proposal, the information required, and steps for submitting this report.

The life cycle of indirect rates for a government contract includes estimated indirect rates for pricing, provisional rates for billing indirect costs, and final indirect rates to settle the actual indirect costs reimbursed by the contract. While government contractors focus on pricing to win and recover costs, their accountants determine the actual indirect costs through the company’s books of account.

New government contractors benefit from budget planning, pricing insights, and new contract opportunities with a DCAA compliant accounting system. Plan ahead to leverage insights from your accounting system, and support the growth of your business.

ICAT Systems is excited to announce the first on-demand certificate program in government contract cost accounting. This comprehensive course is designed to help government contractors and their accounting professionals master the day-to-day accounting methods and compliance requirements for accounting system compliance, provisional billing rates, and final indirect cost rate proposals.

Estimate expected indirect rates during the proposed contract's period of performance. Determine the impact of winning a new contracts. Calculate the weighted average base labor rate and fully-loaded labor rate. Prepare more accurate pricing proposals.

Understanding the nuances of indirect rates will help government contractors better manage contracts and their business as a whole. In part 1 of a 3 part series, we’ll define indirect rates and explain how they are used in cost accounting.

Understanding the nuances of indirect rates will help government contractors better manage contracts and their business as a whole. Part 2 of our 3 part series on indirect rates examines the role of prospective indirect rates in contract pricing.

Understanding the nuances of indirect rates will help government contractors better manage contracts and their business as a whole. Part 3 in our series on indirect rates reviews the role of indirect rates in contract billing, including provisional indirect rates and indirect rate variances.