Your Incurred Cost Submission has been provided to DCAA and deemed adequate, now what?
After determining the final indirect rates, the contractor must address their adjusting invoices. Adjusting invoices are a result of the difference between the final indirect rate burden calculated at the end of the year and the provisional (or target) indirect rate burdens that were invoiced during the year. If the actual rates are lower than the provisional rates, the contractor will need to reimburse the difference to the customer. If the actual rates are higher than the provisional rates and the contractor is owed money, they have the right to request those funds (assuming contract funding limits have not been reached). In that case, consider the relationship with the customer and how exceeding budgeted rates will affect that relationship.
For further assistance, contact Michelle Jenkins at 256-489-7143 or Jessica Cassiday at 217-725-2822. We look forward to helping you!