Traceable, allocable costs
Every dollar you claim has to be traceable, allocable, and defensible to your contracting officer and, if it comes to it, to a DCAA auditor.
Cost-reimbursement contracts put your accounting system under a microscope. Every dollar you claim has to be traceable, allocable, and defensible — to your contracting officer, and if it comes to it, to a DCAA auditor. Get it wrong and you're looking at disallowed costs, withheld payments, or a qualified opinion on your accounting system that jeopardizes future awards.
Accurate Cost Allocation. Reliable Contract Reimbursement.
Our government contractor accounting specialists work exclusively with organizations operating under FAR and CAS requirements. We help you organize contract financial data, allocate direct and indirect costs correctly, and build the documentation trail that stands up to scrutiny — so reimbursement isn't a fight every time.
Every dollar you claim has to be traceable, allocable, and defensible to your contracting officer and, if it comes to it, to a DCAA auditor.
We help you organize contract financial data and build the documentation trail that supports cost reimbursement under applicable contract rules.
Cost allocation, reimbursement analysis, reporting, and DCAA-adjacent support:
Under a cost-reimbursement contract (CPFF, CPIF, CPAF, or T&M), the government pays your allowable, allocable, and reasonable costs — not a fixed price. That single distinction changes everything about how your accounting needs to work.
Contract Requirements
Cost Classification
Cost Allocation
Financial Records
Reimbursement Reporting
Most reimbursement disputes trace back to a break somewhere in that chain — a cost booked to the wrong pool, an allocation base that doesn't reflect actual usage, or documentation that doesn't match what was billed. We find those breaks before an auditor does.
Getting this split wrong is the single most common reason contractors face cost disallowances. We review your cost pools, allocation bases, and the consistency of how costs are treated period over period — because inconsistent treatment is exactly what triggers deeper audit scrutiny.
Costs identifiable with a specific contract or final cost objective:
Costs that benefit multiple contracts or the business as a whole, allocated through a defined methodology:
Your indirect rates directly determine how much of your overhead, fringe, and G&A gets reimbursed on every contract. A rate structure that's off by a few points compounds across every invoice you submit. Our analysis covers the items below. The goal is a rate structure you can defend line by line — not just one that balances on paper.
Indirect cost pool structure and composition — how overhead, fringe, and G&A are built.
Allocation base selection and consistency, including a base that reflects actual usage.
Provisional vs. actual rate calculation so billing rates can be compared to rates supported by actual costs.
Historical rate trend and variance analysis across periods.
Reconciliation between rates used for billing and rates supported by actual costs.
Documentation supporting rate calculations — a structure you can defend line by line, not just one that balances on paper.
If your contracts include the Allowable Cost and Payment clause (FAR 52.216-7), you're required to file an annual incurred cost submission — and DCAA's own guidance is exacting about what a compliant, adequate submission looks like. We support the full ICS process. We help you avoid the most common reasons ICS submissions get flagged as inadequate: unsupported rate calculations, unreconciled schedules, and missing supporting documentation — all of which can delay closeout of your contracts by months or years.
Gather the financial data needed for an adequate incurred cost submission.
Classify costs so direct and indirect treatment is consistent and supportable.
Analyze indirect rates used in the submission against actual costs.
Reconcile schedules so unsupported calculations and unreconciled totals are caught before filing.
Review the package against the documentation DCAA expects in an adequate submission.
Support filing so missing supporting documentation does not delay contract closeout.
Requirements vary by contract type, agency, and business size — we tailor our approach accordingly.
Cost visibility shouldn't require a special project every time a contracting officer asks a question. DCAA audits — whether pre-award accounting system reviews, incurred cost audits, or floor checks — are won or lost on documentation you should already have, presented in a way an auditor can follow.
Audit scope and applicable standards vary by contract type, agency, and contractor circumstances.
We help you build standing reports covering contract-level cost performance, labor, materials, indirect allocation, G&A and overhead trends, and reimbursement status. Clear, consistent reporting means fewer surprises at contract closeout and stronger positioning in rate negotiations.
We help you prepare for accounting system adequacy reviews, incurred cost audits, indirect rate audits, cost classification review, reconciliation between accounting records and submitted claims, and response preparation for audit findings and questioned costs. We don't just organize paperwork — we look for the same gaps an auditor would flag, before the audit starts.
Every cost claimed against a government contract has to clear three tests under FAR Part 31. Costs that fail any one of these tests get disallowed — regardless of whether they were legitimately incurred. We build the documentation and classification discipline that lets you demonstrate all three, consistently.
Government contract accounting is a continuous obligation, not a once-a-year task.
We work exclusively in FAR, CAS, and DCAA-adjacent accounting; this isn't a general bookkeeping add-on.
A defined methodology for cost review, classification, and documentation — not ad hoc cleanup before an audit.
Know exactly how your indirect rates are built and defend them with confidence.
We prepare your records the way an auditor will actually review them.
Government contract accounting is a continuous obligation, not a once-a-year task. We're available year-round, not just at ICS deadline.
If your revenue depends on cost reimbursement, your accounting system is part of your competitive position — not just back-office overhead. We help you tighten cost allocation, strengthen your indirect rate structure, and get audit-ready before the audit ever starts.
It's the process of recording, classifying, allocating, and reporting costs on government contracts in a way that complies with FAR cost principles and, where applicable, Cost Accounting Standards (CAS).
A contract type (CPFF, CPIF, CPAF, or T&M) where the government reimburses the contractor's allowable, allocable, and reasonable costs, rather than paying a fixed price regardless of actual cost.
Because allocation errors are one of the most common reasons costs get disallowed. Consistent, well-documented allocation methodology is what lets you defend your billed costs under audit.
Direct costs trace to one specific contract (labor, materials, subcontractors on that job). Indirect costs — overhead, G&A, fringe — benefit multiple contracts and get allocated through a defined pool/base methodology.
It's an annual filing required under FAR 52.216-7 for contractors with qualifying cost-reimbursement contracts, reporting actual incurred costs and final indirect rates for the fiscal year.
Yes — from data collection and cost classification through rate analysis, reconciliation, and full submission preparation.
Yes. We review your cost pools, allocation bases, historical rate trends, and the documentation supporting your rate calculations.
Yes — including accounting system reviews, incurred cost audits, documentation preparation, reconciliation, and response support for audit findings.
Consistent cost classification, a documented allocation methodology applied period over period, regular reconciliation, and complete supporting documentation are the core drivers of clean, defensible reimbursement claims.
If you hold cost-reimbursement contracts, yes — standard commercial bookkeeping doesn't meet FAR/CAS documentation and allocation requirements. The specific level of support needed depends on your contract mix, accounting system, and business size.
.b3150dff.webp&w=640&q=75&dpl=dpl_EwpDMDBbJD6c2wjF446XEi3Vt4zr)
We streamline your operations and unlock smarter growth
opportunities without the chaos.
Book a free meeting with our experts and get a tailored plan for your team.