Page images
PDF
EPUB
[blocks in formation]

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:

[ocr errors][merged small][merged small]

о provide a common data base to DOD Components,
Federal agencies, foreign governments and indus-
trial organizations (a) for use in designing and
implementing compatible procedures which involve
coding, transmitting, receiving, decoding and
using logistics information; and (b) to generally
improve operations, customer satisfaction and
management control; and

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
systems to assist in cross-relating and

identifying contract data by applicable
block number of the DD 250;

O programs to flag for action elements of
information that are missing, e.g. shipping

instructions, to improve data availability

prior to contract delivery dates. Specifically,
in the design of MILSCAP a 30 day prior alert
capability was provided for;

O improved methods for correcting or updating
source data to facilitate timely transaction
reporting, and payments to contractors when
contractual obligations have been fulfilled.
A reduction in the need for corrected copies
should be a key objective; and

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

« PreviousContinue »