Difference between revisions of "Contract Brief"
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==Requirements== | ==Requirements== | ||
===Flexibly Priced Contracts=== | ===Flexibly Priced Contracts=== | ||
| + | ====Incurred Cost Submissions==== | ||
If you have a flexibly priced contract you will most likely have the contract clause FAR 52.216-7 in your contract. That clause requires a contractor to: | If you have a flexibly priced contract you will most likely have the contract clause FAR 52.216-7 in your contract. That clause requires a contractor to: | ||
* "Submit an '''adequate''' Final Indirect Cost Rate Proposal to the Contracting Officer (or cognizant Federal agency official) and auditor within the 6-month period following the expiration of each of its fiscal years."<ref>FAR 52.216-7(d) - Allowable Cost and Payment; FAC 2005-68; June 26, 2013</ref> | * "Submit an '''adequate''' Final Indirect Cost Rate Proposal to the Contracting Officer (or cognizant Federal agency official) and auditor within the 6-month period following the expiration of each of its fiscal years."<ref>FAR 52.216-7(d) - Allowable Cost and Payment; FAC 2005-68; June 26, 2013</ref> | ||
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DCAA provides to contracts a "model incurred submission" template.<ref>DCAAP 7641.90 "Model Incurred Cost Submission.</ref> The requirements are also within the Defense Contract Audit Manual (DCAM) Chapter 6, Figure 6-8-1. DCAA states that a contractor need not use the example form if the information is already generated and available within its automated accounting or billing systems. | DCAA provides to contracts a "model incurred submission" template.<ref>DCAAP 7641.90 "Model Incurred Cost Submission.</ref> The requirements are also within the Defense Contract Audit Manual (DCAM) Chapter 6, Figure 6-8-1. DCAA states that a contractor need not use the example form if the information is already generated and available within its automated accounting or billing systems. | ||
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| + | ====Billing System==== | ||
| + | A contractor will also be required to produce contract briefs during a billing system audit. The DCAA Audit Program requires, and reads as follows, | ||
| + | "However, if you determine that you can rely on the contractor’s brief based on testing in the first phase i.e., no errors are found on the tested briefs), in any subsequent phases, step 1 below can be limited to obtaining for our perm files any modifications issued since the last testing period and ensuring that you have an updated contract brief reflecting those modifications."<ref>Master Document - Audit Program; G-01 - Review of Vouchers on Cost Type Contracts; Version 1.7 dated July 2013</ref> | ||
===Inflexibly (Fixed) Price Contracts=== | ===Inflexibly (Fixed) Price Contracts=== | ||
Revision as of 08:52, 4 October 2013
Contents |
Introduction
Contract Briefings generally include a synopsis of all pertinent contract provisions, such as contract type, contract amount, product or service(s) to be provided, applicable Cost Principles, contract performance period, rate ceilings, advance approval requirements, precontract cost allowability limitations, and billing limitations.[1]
Requirements
Flexibly Priced Contracts
Incurred Cost Submissions
If you have a flexibly priced contract you will most likely have the contract clause FAR 52.216-7 in your contract. That clause requires a contractor to:
- "Submit an adequate Final Indirect Cost Rate Proposal to the Contracting Officer (or cognizant Federal agency official) and auditor within the 6-month period following the expiration of each of its fiscal years."[2]
An adequate indirect rate proposal is required to have certain information. In addition, "supplemental information is not required to determine if a proposal is adequate, but may be required during the audit process."[3]. Contract Briefs will be required if you have Department of Defense (DoD) contracts, at a minimum during audit.
DCAA provides to contracts a "model incurred submission" template.[4] The requirements are also within the Defense Contract Audit Manual (DCAM) Chapter 6, Figure 6-8-1. DCAA states that a contractor need not use the example form if the information is already generated and available within its automated accounting or billing systems.
Billing System
A contractor will also be required to produce contract briefs during a billing system audit. The DCAA Audit Program requires, and reads as follows, "However, if you determine that you can rely on the contractor’s brief based on testing in the first phase i.e., no errors are found on the tested briefs), in any subsequent phases, step 1 below can be limited to obtaining for our perm files any modifications issued since the last testing period and ensuring that you have an updated contract brief reflecting those modifications."[5]
Inflexibly (Fixed) Price Contracts
References and Notes
- ↑ DCAAM, Chapter 6, Figure 6-8-1; January 2005
- ↑ FAR 52.216-7(d) - Allowable Cost and Payment; FAC 2005-68; June 26, 2013
- ↑ FAR 52.216-7(d)(Iv) - Allowable Cost and Payment; FAC 2005-68, June 26, 2013
- ↑ DCAAP 7641.90 "Model Incurred Cost Submission.
- ↑ Master Document - Audit Program; G-01 - Review of Vouchers on Cost Type Contracts; Version 1.7 dated July 2013
