PREAWARD SURVEY OF PROSPECTIVE CONTRACTOR ACCOUNTING SYSTEM

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SECTION I - RECOMMENDATION

1. PROSPECTIVE CONTRACTOR'S ACCOUNTING SYSTEM IS ACCEPTABLE FOR AWARD OF PROSPCTIVE CONTRACT

YES                               NO (Explain in 2. NARRATIVE)

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.)

IF CONTINUATION SHEETS
       ATTACHED - MARK HERE       

3. SURVEY MADE BY

a. SIGNATURE AND OFFICE (Include typed or printed name)

b. TELEPHONE NO. (include area code)

c. DATE SIGNED

4.  SURVEY REVIEWING OFFICIAL

a. SIGNATURE AND OFFICE (Include typed or printed name)

b. TELEPHONE NO. (include area code)

c. DATE REVIEWED

SECTION II - EVALUATION CHECKLIST

MARK "X" IN THE APPROPRIATE COLUMN (Explain any deficiencies in SECTION 1 NARRATIVE)

YES

NO

NOT APPLICABLE

1.  EXCEPT AS STATED IN SECTION 1 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.  Accumlation 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.  Interim (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 FAR31, Contract Cost Principles and Procedures, or other contract provisions.

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.

j.  Segregation of preproduction costs from production costs.

3.  ACCOUNTING SYSTEM PROVIDES FINANCIAL INFORMATION:

a.  Required by contract clauses concerning limitation of cost (FAR52.232-20 and 21) or limitation on payments (FAR52.21 6-1 6).

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 ACQUISITONS?

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.)

AUTHORIZED FOR LOCAL REPRODUCTION
Previous edition usable

STANDARD FORM 1408 (REV. 9-88)
Prescribed by GSA
FAR (48 CFR) 53.209-1(f)