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Who needs an Incurred Cost Submission?

What is an Incurred Cost Submission and Who Needs to Submit One? The Federal Acquisition Regulations (FAR) clause FAR 52.216-7 requires government contractors to submit final annual indirect cost rates six months after the fiscal year end; known as the Incurred Cost...

Cost Reimbursement Contracts

Cost Reimbursement Contracts Federal Acquisitions Regulations (FAR) 16.301-1 defines cost reimbursement contracts as contracts which allow for payment of allowable costs up to the agreed estimated ceiling amount. There are four types of cost reimbursement contracts. A...

Firm Fixed Price Contracts

Firm Fixed Price Contracts Federal Acquisition Regulations (FAR) 16.202-1 describes a firm fixed price contract (FFP) as a contract which “provides a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the...

Contract Related Assets and Liabilities

Contract Related Assets and Liabilities There are several situations that give rise to contract related assets and liabilities when working with the government.  According to section 912-310-25 (page 14) Recognition of the Financial Accounting Standards Board’s (FASB)...

Unallowable Cost Events

Unallowable Cost Events Unallowable events can seem harmless enough, but are they really? What is the real impact of unallowable events for government contractors?  Before delving into the impact, let’s take a quick review of what is meant by the term unallowable...