DCAA Revises ICE Guidance

Indirect Costs & ICE News

July 14, 2016
The Defense Contract Audit Agency issued revised policy and procedures for sampling low-risk incurred cost proposals. The agency intends to audit incurred cost submissions (ICE) with less than $5 million in auditable dollar volume (ADV), when relevant significant risk factors warrant an audit. The DCAA guidance specifies the dollar thresholds that determine significant risk. Otherwise, those ICE submissions deemed low risk and not selected randomly for audit will be closed with a desk review.
When a Contracting Officer or auditor identifies specific risk having a material impact to the submission such as certain direct cost/s on a single contract, those costs will be subject to audit. The rest of the submission is performed as a desk review.
As has been past practice, new contractors with no DCAA audit history will have their first ICE submission deemed high risk (audited).