Incurred Cost Proposal Requirements-(52.216-7(d)(2)(iii)

An adequate indirect cost rate proposal shall include the following data unless otherwise specified by the cognizant Federal agency official:

Required for Adequacy

• (A) Summary of all claimed indirect expense rates, including pool, base, and calculated indirect rate.

• (B) General and Administrative expenses (final indirect cost pool). Schedule of claimed expenses by element of cost as identified in accounting records (Chart of Accounts).

• (C) Overhead expenses (final indirect cost pool). Schedule of claimed expenses by element of cost as identified in accounting records (Chart of Accounts) for each final indirect cost pool.

• (D) Occupancy expenses (intermediate indirect cost pool). Schedule of claimed expenses by element of cost as identified in accounting records (Chart of Accounts) and expense reallocation to final indirect cost pools.

• (E) Claimed allocation bases, by element of cost, used to distribute indirect costs.

• (F) Facilities capital cost of money factors computation.

• (G) Reconciliation of books of account (i.e., General Ledger) and claimed direct costs by major cost element.

• (H) Schedule of direct costs by contract and subcontract and indirect expense applied at claimed rates, as well as a subsidiary schedule of Government participation percentages in each of the allocation base amounts.

• (I) Schedule of cumulative direct and indirect costs claimed and billed by contract and subcontract.

• (J) Subcontract information. Listing of subcontracts awarded to companies for which the contractor is the prime or upper-tier contractor (include prime and subcontract numbers; subcontract value and award type; amount claimed during the fiscal year; and the subcontractor name, address, and point of contact information).

• (K) Summary of each time-and-materials and labor-hour contract information, including labor categories, labor rates, hours, and amounts; direct materials; other direct costs; and, indirect expense applied at claimed rates.

• (L) Reconciliation of total payroll per IRS form 941 to total labor costs distribution.

• (M) Listing of decisions/agreements/approvals and description of accounting/organizational changes.

• (N) Certificate of final indirect costs (see 52.242-4, Certification of Final Indirect Costs).

• (O) Contract closing information for contracts physically completed in this fiscal year (include contract number, period of performance, contract ceiling amounts, contract fee computations, level of effort, and indicate if the contract is ready to close).

Not required for adequacy

(iv) The following supplemental information is not required to determine if a proposal is adequate, but may be required during the audit process:

• (A) Comparative analysis of indirect expense pools detailed by account to prior fiscal year and budgetary data.

• (B) General organizational information and limitation on allowability of compensation for certain contractor personnel. See 31.205-6(p). Additional salary reference information is available at http://www.whitehouse.gov/omb/procurement_index_exec_comp/.

• (C) Identification of prime contracts under which the contractor performs as a subcontractor.

• (D) Description of accounting system (excludes contractors required to submit a CAS Disclosure Statement or contractors where the description of the accounting system has not changed from the previous year’s submission).

• (E) Procedures for identifying and excluding unallowable costs from the costs claimed and billed (excludes contractors where the procedures have not changed from the previous year’s submission).

• (F) Certified financial statements and other financial data (e.g., trial balance, compilation, review, etc.).

• (G) Management letter from outside CPAs concerning any internal control weaknesses.

• (H) Actions that have been and/or will be implemented to correct the weaknesses described in the management letter from subparagraph (G) of this section.

• (I) List of all internal audit reports issued since the last disclosure of internal audit reports to the Government.

• (J) Annual internal audit plan of scheduled audits to be performed in the fiscal year when the final indirect cost rate submission is made.

• (K) Federal and State income tax returns.

• (L) Securities and Exchange Commission 10-K annual report.

• (M) Minutes from board of directors meetings.

• (N) Listing of delay claims and termination claims submitted which contain costs relating to the subject fiscal year.

• (O) Contract briefings, which generally include a synopsis of all pertinent contract provisions, such as: contract type, contract amount, product or service(s) to be provided, contract performance period, rate ceilings, advance approval requirements, pre-contract cost allowability limitations, and billing limitations.