Direct Bill Program

5-301.2 Participation in the Direct Billing Program

a. A contractor who has not already been contacted by DCAA, but believes that its policies and procedures meet the criteria outlined above, should write to its cognizant DCAA office to request participation in the direct billing program. The letter should include any rationale and/or documentation to support the contractor’s belief that its billing system policies and procedures meet the above criteria. During the next scheduled DCAA audit, the DCAA office will review the documentation and make a determination on eligibility to participate in the program.

b. If DCAA determines that a contractor is eligible to participate in the direct billing program, the contractor will be authorized to submit interim vouchers directly to the designated Government paying office(s), based on a DCAA authorization memorandum. The DCAA authorization memorandum to the paying office (with a copy to the contractor) will be signed by the cognizant DCAA office manager and state that the contractor has adequate internal controls over its billing system and submits incurred cost proposals and final vouchers per FAR 52.216-7; therefore, provisional DCAA approval of interim vouchers is not needed. A contractor cannot begin submitting vouchers directly until the contractor receives this memorandum. When submitting interim vouchers, the paying office requires that one copy of the DCAA authorization memorandum be forwarded with the voucher, and that “Direct Submission Authorized” be included in the voucher signature block.

5-301.3 Rescission of Authority to Direct Bill

DCAA may rescind the contractor’s authorization to direct bill when:

• An audit report to the contracting officer identifies billing system internal control deficiencies;

• A DCAA Form 1, “Notice of Contract Costs Suspended and/or Disapproved” is prepared (See 6-301 for information on DCAA Form 1s);

• The contractor fails to apply approved billing system procedures in preparing vouchers for direct billing;

• Fiscal year-end incurred cost proposals are not submitted timely and in accordance with FAR 52.216-7, “Allowable Cost and Payment” contract clause; or

• The contractor fails to submit final vouchers in accordance with FAR 52.216-7, Allowable Cost and Payment contract clause, or a previously agreed-to plan to get current.

DCAA will immediately notify a contractor of a decision to withdraw its direct billing authority. DCAA will also notify the contracting officer and paying office within 24 hours of notifying the contractor.

5-301.4 Electronic Submission of Interim Vouchers

a. A contractor that participates in the direct billing program may be eligible to submit vouchers electronically via the Defense Finance and Accounting Service (DFAS) paperless initiatives. DFAS allows contractors that participate in the direct billing program to submit vouchers electronically via Electronic Data Interchange (EDI), Wide Area Workflow (WAWF), and/or web invoicing. Contractors participating in the direct billing program that are interested in submitting interim vouchers electronically should contact DFAS, Headquarters, Electronic Commerce Program Office, at (614) 693-6868 or visit the DFAS electronic commerce home page at http://www.dfas.mil/ecedi.

b. The electronic submission of interim vouchers by contractors participating in the direct billing program does not require the submission of a SF 1034 or 1035. However, contractors are required to provide SF 1034 and 1035 information to contracting officers and auditors upon request. As discussed in 5-201a, contractors should also ensure vouchers are prepared and submitted in accordance with the terms of the contract, including any special billing or payment instructions, such as a requirement to bill by contract line item (CLIN) or accounting classification reference number (ACRN). SF 1034 and 1035 information will be periodically reviewed by contracting officers and auditors as part of their continued oversight of contractors’ billings including audits of billing systems, contractor preparation of interim vouchers, and status of Government contract funding. If a contractor refuses to provide SF 1034 and 1035 information upon request, the contractor’s authorization to direct bill will be rescinded and DFAS will be notified that the contractor should not be allowed to submit vouchers via EDI, WAWF, and/or web invoicing.

5-302 Prescribed Government Forms for Public Vouchers

a. The contractor must use SF 1034 (original) and 1034A (copies), "Public Voucher for Purchases and Services Other Than Personal,” to show the amount claimed for reimbursement. The original public voucher (SF 1034) may be reproduced; however, it must conform to the official Government form in format, color (white), and quality of paper, and must be stamped "Original." A blank SF 1034 can be found in Chapter 8. Contractor submittal of a public voucher through WAWF provides data equivalent to the SF 1034.

b. The SF 1034A is essentially the same as the SF 1034. SF 1034A (copies) may be prepared by using a suitable process that will reproduce it and the typed entries on the original. Snapout public voucher sets are available (note that the snapouts contain the SF 1034 and the SF 1034A in the set). The required number of copies (per the contract or refer to paragraph 5-305.1 of this pamphlet) should be submitted to the auditor. The contractor is not required to certify or otherwise sign the public voucher.

c. SF 1035 and 1035A, "Public Voucher for Purchases and Services Other Than Personal Continuation Sheet,” will be used for additional information required by the contracting officer and/or the auditor. The original continuation sheet (SF 1035) may be reproduced, provided it meets the same requirements for a reproduced SF 1034 (reference paragraphs 5302a, and 5-305.1). The contractor may prepare a SF 1035A by using a suitable process that will reproduce it and the typed entries on the original. The SF 1035 and 1035A should be assembled separately in original and copy sets and submitted with the SF 1034 and 1034A.

Suitable self-designed forms may be submitted instead of the SF 1035 and 1035A, as long as they contain the information required by the contracting officer and/or auditor. Contractors submitting public vouchers via WAWF must attach an electronic file containing SF 1035 equivalent data to their electronic voucher submission in WAWF, unless the contractor has been approved for participation in the direct billing program. d. The public voucher forms may be reproduced from Chapter 8 of this pamphlet or obtained from the appropriate administrative contracting officer or, at a nominal cost, from the Government Printing Office (GPO).