ANNEX 2 INITIATIVES FOR FUTURE CONSIDERATION FOR FURTHER IMPROVEMENT OF DD 250 REPORTING Data and distribution requirements of the DD 250 could be further reduced by satisfying departmental communication or reporting needs using established Military Standard Logistics Systems (MILS) capabilities. Some ten (10) standard systems are included in this program that has been designed to: о provide a common data base to DOD Components, O provide a base which can be considered and utilized in the development of new or revised DOD Component logistic systems. Other data processing techniques could be developed to improve administration of the DD 250 process. Examples of applications needed to address current problems include: O programs in logistical data processing identifying contract data by applicable O programs to flag for action elements of instructions, to improve data availability prior to contract delivery dates. Specifically, O improved methods for correcting or updating O exception techniques to accomodate specific data inquiries, in lieu of continuous reporting requirements. Claims Under Cost Reimbursement Contracts Project Summary Contractors performing under cost reimbursement type contracts generally submit monthly claims for reimbursement of costs incurred. The various contract payment clauses permit the contractor to use an invoice or voucher for submission of claims. However, most agencies' operating procedures Approximately 360,000 of these require the use of Standard Form (SF) 1034 (Public Voucher for Purchases and Services Other Than Personal) supported by the SF 1035 (Continuation Sheet.) forms are submitted annually. Over the past ten years, there have been a number of procedural changes, as well as increased use of automated data systems, which could permit a dramatic reduction in the requirement for contractors to submit the forms. Background Prior to the award of a cost reimbursement type (CRT) contract, a government auditor may be expected to provide an opinion as to the adequacy of a prospective contractor's accounting system to identify costs incurred with the proper contract or job. incurred. Subsequent to award, the contractor follows the clause in his contract entitled, "Allowable Cost, (Fee) and Payment" for instructions in submitting claims for costs While a few selected agencies provide instructions as to the form and detail required in their contracts, most rely on the government auditors to give this guidance. Regardless, contractors are usually requested to use the Standard Forms 1034 and 1035 with similar supporting details. Appendix D is a copy of a typical set of instructions for preparing Standard Forms 1034 and 1035. Instructions of this nature fail to recognize that such detailed supporting data may not be required with each interim claim, or that the supporting data may not need to be reviewed or evaluated on a continuing basis. The instructions also fail to recognize that in agencies where the disbursing function is mechanized, there is no need for a contractor-prepared SF 1034. The paperwork involved is significant. The statistics for only three agencies, DOD, HEW, and ERDA, show that at any given time, these agencies are administering approximately 30,000 CRT contracts. Though contractors are permitted to invoice bi-weekly, most do so on a monthly basis. For these three agencies alone, contractors prepare, and the agencies process and pay, approximately 360,000 SF 1034s annually, each supported by a detailed statement of costs incurred. It has been estimated that the cost to contractors to prepare SFS 1034 and 1035 or the supporting statement in lieu |