An Incurred Cost Proposal (ICP) is an annual report required for contractors working under cost-reimbursable government contracts. The proposal summarizes indirect costs incurred during a fiscal year and is submitted to the Defense Contract Audit Agency (DCAA).
Contractors performing Cost-Plus, Time & Materials, or Labor Hour contracts are generally required to submit an ICP, particularly when annual incurred costs exceed $750,000.
ICP Submission Deadline
The ICP must be submitted within six months after the end of your fiscal year. For example, if your fiscal year ends on December 31, the submission deadline is June 30.
Key Components of an ICP
- Labor costs
- Material costs
- Overhead expenses
- General and administrative (G&A) costs
Accurate cost tracking and proper classification of direct and indirect costs are essential for compliance with FAR and DCAA regulations.
Simplifying ICP Preparation with WrkPlan
WrkPlan ERP helps government contractors simplify ICP preparation by automatically generating Schedules A–O using existing accounting and contract data. The platform integrates project accounting, contract management, and compliance reporting to ensure accurate and DCAA-compliant submissions.