Pre-award survey requested? Here is what DCAA will check.

Who this fits.

You are bidding your first cost-type contract and the solicitation says the accounting system will be reviewed before award.

A contracting officer or DCAA has already requested the survey and given you a date.

You have 3 to 50 employees and run a general-purpose accounting system such as QuickBooks, Xero or Sage that was not set up with government cost accounting in mind.

What the auditor evaluates.

The survey is a design review, not a transaction audit. These are the sources the auditor works from.

CitationWhat it covers

SF 1408 Section IIThe evaluation checklist: GAAP basis, segregation of direct and indirect costs, accumulation by contract, timekeeping, labor distribution, interim cost determination, exclusion of unallowables.

FAR 16.301-3(a)(3)Why the survey exists: a cost-reimbursement contract may be used only when the contractor’s accounting system is adequate for determining costs applicable to the contract.

DFARS 252.242-7006Post-award: the 18 accounting system criteria that apply once you hold the contract. The survey anticipates them.

FAR Part 31Allowability: the cost principles your system has to be able to apply to exclude unallowable costs from billings.

Where contractors fail.

01Timekeeping that does not tie labor hours to a cost objective at the time the work is performed.

02No labor distribution: payroll is booked in total rather than charged to contracts and indirect accounts.

03Direct and indirect costs not segregated in the chart of accounts.

04An indirect allocation method that exists in practice but is not written down.

05Unallowable costs not identified and excluded in the general ledger.

06No monthly posting discipline, so interim contract costs cannot be determined.

How we help.

Before

Criteria gap matrix

Each SF 1408 criterion, your current state, and the evidence the auditor will want.

During

Mock survey walkthrough

We run the questions the way the auditor runs them, so the real session has no surprises.

Findings

Written gap report

Plain-English findings, ranked by what will stop an award.

After

Corrective action plan and re-check

Owner, step and date for each gap, then a second pass once the work is done.

Deliverables and price.

SF 1408 readiness review

Starting at$3,125

For first-time cost-type bidders with an existing accounting system.

Criteria gap matrix against SF 1408 Section II
Mock survey walkthrough (remote, 90 minutes)
Written gap report
Corrective action plan
One re-check after remediation

Book a consult

Starting prices apply to defined scope. Audit support and remediation beyond the plan are scoped individually.

SF 1408 questions.

Last reviewed [DATE]Reviewed by William Austin, CPA

Regulations cited: SF 1408 Section II · FAR 16.301-3 · DFARS 252.242-7006 · FAR Part 31.

This page is educational. It is not a determination of accounting system adequacy or legal advice. Pragmatic Defense Solutions LLC is not affiliated with DCAA, DCMA or any federal agency.