I have conducted an evaluation of the accounting system of __________________ located at ______________________________ for compliance with DCAArequirements and to determine whether such accounting system is capable of accumulating contract costs consistent with the cost principles set forth in the Federal Acquisition Regulation Part 31.2.

I have determined the following regarding the accounting system of __________________.

1. The accounting system is maintained in accordance with Generally Accepted Accounting Principles.

2.There is a proper segregation of direct costs from indirect costs.

3. Direct costs are identified and accumulated by contract.

4. There is a logical and consistent method for the allocation of indirect costs to intermediate and final cost objectives.

5.Costs arc accumulated under general ledger control.

6.There is a timekeeping system that identifies employees' labor by intermediate or final cost objectives.

7.There is a labor distribution system that charges direct and indirect labor to the appropriate cost objectives.

8.Management determines, on a monthly basis, costs charged to contracts through routine posting of books of account.

9.Costs which are not allowable in terms of FAR Part 31.2 or with other contract provisions are excluded from costs charged to government contracts.

10. The accounting system provides financial information required by contract clauses concerning limitation of costs or limitation of payments,

11.The accounting system provides financial information required to support contract billings.

12.The accounting system is designed and records are maintained in such a manner that adequate, reliable data can be developed for use in pricing follow-on acquisitions.

13.The accounting system is currently in full operation.

Based on my evaluation of the accounting system of __________________, I certify that it is in compliance with DCAA requirements and is capable of accumulating costs under Federal Government contracts.

FAR Reference:

16.301-3 Limitations.

(a) A cost-reimbursement contract may be used only when -

(1) The contractor's accounting system is adequate for determining costs applicable to the contract.

Indefinite Delivery, Indefinite Quantity (IDIQ) Contracts

Indefinite delivery, indefinite quantity (IDIQ) contracts provide for an indefinite quantity of services during a fixed period of time. They are used when GSA can’t predetermine, above a specified minimum, the precise quantities of supplies or services that the government will require during the contract period. IDIQs help streamline the contract process and speed service delivery.

IDIQ contracts are most often used for service contracts and architect-engineering services. Awards are usually for base years as well as option years. The government places delivery orders (for supplies) or task orders (for services) against a basic contract for individual requirements. Minimum and maximum quantity limits are specified in the basic contract as either number of units (for supplies) or as dollar values (for services).

An ID/IQ contract is a contract between a federal government agency and a contractor for the indefinite delivery of an indefinite quantity of services. Timing and delivery of the services is determined through agency completion of an individual task order or individual delivery orders. A single ID/IQ contract may be used by a number of federal organizations.

GWACs

Government Wide Acquisition Contract (GWAC) allows Federal agencies to purchase information technology products and services from another Federal agency’s contract. The advantage of a GWAC contract is that the agency that signs the contract centralizes the contract administration for all participating agencies. This is faster, less costly and more convenient than having each contracting organization issue its own contract.

They are indefinite delivery/indefinite quantity contracts that support flexible procurement and efficiency.