ATTACHMENT 7 - SF1408.pdf

ATTACHMENT 7 – STANDARD FORM 1408

Preaward Survey of Prospective Contractor Accounting System Checklist

Instructions:

1. Mark “X” in the appropriate column.

2. On Page 2 provide a narrative describing how the current accounting system supports your response to each item.

Contractor Name:

Point of Contact:

CAGE Code:

DUNS Code:

Yes No N/A Note

1. Is the accounting system in accord with generally accepted accounting principles? 1

2. ACCOUNTING SYSTEM PROVIDES FOR:

a. Proper segregation of direct costs from indirect costs. 2

b. Identification and accumulation of direct costs by contract. 3

c. A logical and consistent method for the allocation of indirect costs to intermediate and final cost objectives. (A contract is final cost objective.) 4

d. Accumulation of costs under general ledger control. 5

e. A timekeeping system that identifies employees' labor by intermediate or final cost objectives. 6

f. A labor distribution system that charges direct and indirect labor to the appropriate cost objectives. 7

g. Interim (at least monthly) determination of costs charged to a contract through routine posting of books of account. 8

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. 9

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. 10

j. Segregation of preproduction costs from production costs. 11

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). 12

b. Required to support requests for progress payments. 13

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? 14

5. Is the accounting system currently in full operation? (If not, describe in Page 2 narrative which portions are (1) in operation, (2) set up, but not yet in operation, (3) anticipated, or (4) nonexistent.) 15

Instruction: Use this section to explain how the current accounting system supports your response to each item. If a response is N/A provide further explanation. Use as much space as needed. Provide references to current policies and procedures if applicable.

Note Narrative