Government contractors submitting incurred cost proposals must comply with a complex web of Federal Acquisition Regulation (FAR) clauses and Cost Accounting Standards (CAS). This compliance guide maps the specific regulations to each ICP schedule, so you know exactly which rules apply at every step of the submission process.
FAR 52.216-7 and the ICP Requirement
FAR 52.216-7 (Allowable Cost and Payment) is the foundational clause that requires contractors with cost-reimbursable, time-and-materials, or labor-hour contracts to submit an annual incurred cost proposal within six months of their fiscal year end. The clause prescribes the format and content of the submission, including the specific schedules that must be included.
FAR 31.205 Cost Principles
FAR Part 31.205 defines which costs are allowable, unallowable, or conditionally allowable on government contracts. There are 21 key cost principle categories that directly affect incurred cost proposals, including compensation (31.205-6), travel (31.205-46), entertainment (31.205-14), and professional services (31.205-33). Each claimed cost must withstand scrutiny against these principles during DCAA audit.
CAS 401–420 Standards
The Cost Accounting Standards (CAS 401 through CAS 420) govern how contractors estimate, accumulate, and report costs. CAS 401 requires consistency between cost estimating and cost accumulation. CAS 402 prohibits double-counting of costs. CAS 410 governs G&A allocation base selection. CAS 418 addresses direct and indirect cost allocation. Understanding which CAS standards apply to your ICP schedules is critical for audit readiness.
How This Guide Works
The interactive matrix below maps each FAR clause and CAS standard to the specific ICP schedules they affect. Filter by schedule (A through O) or by regulation to see the compliance requirements at a glance. This reference helps government contractors, accountants, and compliance teams ensure nothing is missed during ICP preparation.
Explore the interactive compliance matrix below to see which FAR clauses and CAS standards apply to each schedule in your incurred cost proposal.