Difference between revisions of "PreAward Survey of Prospective Contractor Accounting System (including SF1408)"
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| − | + | The Pre-Award Survey is normally done using the government Standard Form (SF) 1408. It is done prior to a cost type contract award, and is done to demonstrate compliance with FAR 16 which prohibits the award of a cost type contract to a contractor that does not have an adequate accounting system. There are 2 sections to this survey. | |
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| + | == Section I - Recommendation == | ||
| + | Section I is the recommendation. The Contracting Officer (with the assistance of DCAA or the Administrative Contracting Officer (ACO) makes a determination regarding the accounting System. They are: | ||
| + | ===Unacceptable=== | ||
| + | * 1. No. The contractors prospective Accounting System is unacceptable for cost type contracts. In this case the contracting officer needs to explain why it is not acceptable. | ||
| + | * 2. The prospective contractor's Accounting System is acceptable for award of prospective contract. Normally there is a recommendation that a follow on Accounting System review be performed after contract award. | ||
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| + | |||
| + | == Section II - General == | ||
| + | SECTION II - EVALUATION CHECKLIST | ||
| + | |||
| + | * 1. EXCEPT AS STATED IN SECTION I NARRATIVE, IS THE ACCOUNTING SYSTEM IN ACCORD WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES APPLICABLE IN THE CIRCUMSTANCES? | ||
| + | * 2. ACCOUNTING SYSTEM PROVIDES FOR: | ||
| + | ** a. Proper segregation of direct costs from indirect costs. | ||
| + | ** b. Identification and accumulation of direct costs by contract. | ||
| + | ** c. A logical and consistent method for the allocation of indirect costs to intermediate and final cost objectives. (A contract is final cost objective.) | ||
| + | ** d. Accumulation of costs under general ledger control. | ||
| + | ** e. A timekeeping system that identifies employees' labor by intermediate or final cost objectives. | ||
| + | ** f. A labor distribution system that charges direct and indirect labor to the appropriate cost objectives. | ||
| + | ** g. Interim (at least monthly) determination of costs charged to a contract through routine posting of books of account. | ||
| + | ** h. Exclusion from costs charged to government contracts of amounts which are not allowable in terms of FAR 31, Contract Cost Principles and Procedures, or other contract provisions. | ||
| + | ** i. Identification of costs by contract line item and by units (as if each unit or line item were a separate contract) if required by the proposed contract. | ||
| + | ** j. Segregation of preproduction costs from production costs. | ||
| + | * 3. ACCOUNTING SYSTEM PROVIDES FINANCIAL INFORMATION: | ||
| + | ** a. Required by contract clauses concerning limitation of cost (FAR 52.232-20 and 21) or limitation on payments (FAR 52.216-16). | ||
| + | ** b. Required to support requests for progress payments. | ||
| + | * 4. IS THE ACCOUNTING SYSTEM DESIGNED, AND ARE THE RECORDS MAINTAINED IN SUCH A MANNER THAT ADEQUATE, RELIABLE DATA ARE DEVELOPED FOR USE IN PRICING FOLLOW-ON ACQUISITIONS? | ||
| + | * 5. IS THE ACCOUNTING SYSTEM CURRENTLY IN FULL OPERATION? (If not, describe in Section I Narrative which portions are (1) in operation, (2) set up, but not yet in operation, (3) anticipated, or (4) nonexistent.) | ||
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| + | [[Category: Accounting System]] | ||
| + | [[Category:Standard Forms (SF)]] | ||
Revision as of 07:47, 14 September 2013
The Pre-Award Survey is normally done using the government Standard Form (SF) 1408. It is done prior to a cost type contract award, and is done to demonstrate compliance with FAR 16 which prohibits the award of a cost type contract to a contractor that does not have an adequate accounting system. There are 2 sections to this survey.
Section I - Recommendation
Section I is the recommendation. The Contracting Officer (with the assistance of DCAA or the Administrative Contracting Officer (ACO) makes a determination regarding the accounting System. They are:
Unacceptable
- 1. No. The contractors prospective Accounting System is unacceptable for cost type contracts. In this case the contracting officer needs to explain why it is not acceptable.
- 2. The prospective contractor's Accounting System is acceptable for award of prospective contract. Normally there is a recommendation that a follow on Accounting System review be performed after contract award.
Section II - General
SECTION II - EVALUATION CHECKLIST
- 1. EXCEPT AS STATED IN SECTION I NARRATIVE, IS THE ACCOUNTING SYSTEM IN ACCORD WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES APPLICABLE IN THE CIRCUMSTANCES?
- 2. ACCOUNTING SYSTEM PROVIDES FOR:
- a. Proper segregation of direct costs from indirect costs.
- b. Identification and accumulation of direct costs by contract.
- c. A logical and consistent method for the allocation of indirect costs to intermediate and final cost objectives. (A contract is final cost objective.)
- d. Accumulation of costs under general ledger control.
- e. A timekeeping system that identifies employees' labor by intermediate or final cost objectives.
- f. A labor distribution system that charges direct and indirect labor to the appropriate cost objectives.
- g. Interim (at least monthly) determination of costs charged to a contract through routine posting of books of account.
- h. Exclusion from costs charged to government contracts of amounts which are not allowable in terms of FAR 31, Contract Cost Principles and Procedures, or other contract provisions.
- i. Identification of costs by contract line item and by units (as if each unit or line item were a separate contract) if required by the proposed contract.
- j. Segregation of preproduction costs from production costs.
- 3. ACCOUNTING SYSTEM PROVIDES FINANCIAL INFORMATION:
- a. Required by contract clauses concerning limitation of cost (FAR 52.232-20 and 21) or limitation on payments (FAR 52.216-16).
- b. Required to support requests for progress payments.
- 4. IS THE ACCOUNTING SYSTEM DESIGNED, AND ARE THE RECORDS MAINTAINED IN SUCH A MANNER THAT ADEQUATE, RELIABLE DATA ARE DEVELOPED FOR USE IN PRICING FOLLOW-ON ACQUISITIONS?
- 5. IS THE ACCOUNTING SYSTEM CURRENTLY IN FULL OPERATION? (If not, describe in Section I Narrative which portions are (1) in operation, (2) set up, but not yet in operation, (3) anticipated, or (4) nonexistent.)
