Difference between revisions of "FAR Accounting System Requirements"
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Latest revision as of 09:33, 18 July 2023
The US Government places special regulations and requirements on accounting systems that contractors utilize. There are DFAR and FAR rules designed to protect the governments interest.
Elements of an Accounting System
Requirements to Have an Adequate Accounting System
Under FAR 16.301-3 Limitations, a contracting officer may only award a cost-type contract to a contractor who has an accounting system that is adequate for determining costs applicable to the contract.
FAR 16.301-3.
16.301-3 Limitations.
(a) A cost-reimbursement contract may be used only when—
- (1) The contractor’s accounting system is adequate for determining costs applicable to the contract; and
- (2) Appropriate Government surveillance during performance will provide reasonable assurance that efficient methods and effective cost controls are used.
- (b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial items.
An adequate accounting system is not an evaluation criterion. It is a basic contract requirement with a pass/fail determination. A contract (cost-reimbursement) may only be awarded to an offeror who is determined to have an adequate accounting system audited by DCAA and reviewed and agreed to by DCMA.”
