SF 1408
Preaward Survey of Prospective Contractor — Accounting System
What It Is
SF 1408 is the standard checklist used in a preaward accounting system survey. Before awarding a cost-reimbursement contract, the government must determine that the contractor's accounting system can accurately segregate and accumulate costs. The Defense Contract Audit Agency (DCAA) or another reviewer walks the criteria on SF 1408 — proper segregation of direct and indirect costs, job-cost ledgers, timekeeping, and the ability to bill costs as incurred. An 'adequate' determination is effectively a gate to cost-type work.
When You'll Use It
- Before award of a cost-reimbursement contract (cost-plus, cost-sharing).
- When an SDVOSB moves from fixed-price work into cost-type contracts and must prove its accounting system.
- As part of a DCAA preaward survey requested by the contracting officer.
Who Completes It
The reviewer (often DCAA) completes the evaluation; the contractor supplies the accounting records, policies, and system demonstrations the checklist examines.
Key Blocks to Get Right
| Block / Section | What It Captures |
|---|---|
| Segregation of direct and indirect costs | Your system must clearly separate direct costs (charged to a job) from indirect costs (overhead, G&A) — the foundation of an adequate system. |
| Job-cost accumulation | Costs must accumulate by contract/job so the government can see what each award actually cost. |
| Timekeeping & labor distribution | A reliable system to record labor hours and distribute them to the right cost objectives — a frequent audit focus. |
| Billing of costs incurred | The system must support interim billings of allowable costs as incurred, consistent with the contract terms. |
Common Pitfalls
- Bidding cost-type work with a cash-basis or commingled bookkeeping system that can't pass SF 1408.
- Weak timekeeping controls — labor is the most scrutinized cost and a common reason for an inadequate finding.
- Assuming a fixed-price track record substitutes for an accounting-system determination; cost contracts require the survey.
Frequently Asked
When do I need an SF 1408 accounting-system review?
When you are in line for a cost-reimbursement contract. Fixed-price contracts generally don't require it, but before the government will award cost-type work it must determine your accounting system is adequate to segregate and bill costs — the SF 1408 criteria are how that's judged, usually via a DCAA preaward survey.
What does an 'adequate' accounting system mean?
It means your system meets the SF 1408 criteria: it separates direct and indirect costs, accumulates costs by job, has reliable timekeeping and labor distribution, and can bill allowable costs as incurred. An adequate determination is effectively a prerequisite for holding cost-reimbursement contracts.
Primary Sources
Plain-English reference, not legal advice. Standard forms are periodically reissued and the FAR is amended for inflation and policy — always download the current edition from the GSA Forms Library and confirm requirements against the solicitation and your contracting officer before relying on it.
Change log (1)
- LaunchedPublished the federal contracting forms reference covering the standard forms an SDVOSB encounters when bidding and performing set-asides — SF 1449, SF 33, SF 18, SF 30, SF 1442, SF 330, SF 1408, SF 1413, the eSRS ISR (formerly SF 294), SF LLL, SF 1034/1035, and the SAM.gov representations & certifications (FAR 52.204-8) — each with a key-blocks table, filing pitfalls, FAQPage, DigitalDocument, Dataset, and BreadcrumbList structured data, primary-source FAR citations, and cross-links into the glossary, how-to guides, FAQ, and regulation explainers.