SECTION VI 1. COMMENTS OF PROSPECTIVE CONTRACTOR'S BANK 2. COMMENTS OF TRADE CREDITORS BUSINESS AND FINANCIAL REPUTATION 3. COMMENTS AND REPORTS OF COMMERCIAL FINANCIAL SERVICES AND CREDIT ORGANIZATIONS (Such as, Dun & Bradstreet, Standard and Poor, etc) the Public reporting burden for this collection of information is estimated to average 24 hours per response, including the tme for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the FAR Secretariat (VRS), Office of Federal Acquisition and Regulatory Policy, GSA, Washington, D.C. 20405; and to the Office of Management and Budget, Paperwork Reduction Project (9000-0011), Washington, D.C. 20503. SECTION - RECOMMENDATION 1. PROSPECTIVE CONTRACTOR'S ACCOUNTING SYSTEM IS ACCEPTABLE FOR AWARD OF PROSPECTIVE CONTRACT. YES. WITH A RECOMMENDATION THAT A FOLLOW ON ACCOUNTING SYSTEM REVIEW BE PERFORMED AFTER CONTRACT AWARD (Explain in 2. NARRATIVE) 2. NARRATIVE (Clarification of deficiencies, and other pertinent comments. If additional space is required, continue on plain sheets of paper.) MARK "X" IN THE APPROPRIATE COLUMN (Explain any deficiencies in SECTION I NARRATIVE) 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 a 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. Interm (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. Lidentification 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.) [55 FR 25565, June 21, 1990) STANDARD FORM 1408 REV. 9–83) BACK |