Pre-Award Accounting System Reviews

What is a Pre-Award Accounting System Review?

An evaluation to determine if your acounting system is adequately designed to perform U.S. Government cost-type contracts, including but not limited to all cost-reimbursement, Time & Material (T&M) and Fixed Price Redetermination contracts.  It focuses on an accounting system’s ability to demonstrate it accumulates costs by project and can equitably distribute indirect costs to final cost objectives for purposes billing under cost-type awards.  The Pre-Award accounting system review evaluates only the design of your accounting system and not the operating effectiveness.  Post award accounting system reviews are a separate scope and service

For further information on Post Award Accounting System reviews.

Because Contracting Officers are prohibited from awarding a contractor a cost-type contract without one, pursuant to FAR 16. As reference, 16.301-3 “(a) A cost-reimbursement contract may be used only when 
(3) The contractor’s accounting system is adequate for determining costs applicable to the contract or order…”

Certified Public Accounting (CPA ) firms, such as RKI, who specialize in U.S. Government contracts, also termed independent public accounting (IPA) firms. The Defense Contract Audit Agency (DCAA) also performs these reviews. However, over time the Agency has had less resource availability to perform them. To aid contractors and contracting officers with satisfying pre-award accounting system adequacy, IPAs like RKI have performed these reviews to satisy the requiements.

An accounting system report stating the adequacy of the system that may be used to satisfy solicitation requirements, contracting officer inquiries, and/or prime contract inquiries.

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