What this form is
Official title: Preaward Survey of Prospective Contractor (Accounting System)
Current edition: Standard Form 1408 (REV. 1/2014); OMB control 9000-0011
Prescribed by: GSA — FAR 53.209-1(f); used in preaward surveys under FAR 9.106
Official download: https://www.gsa.gov/system/files/2024-08/SF1408-14f.pdf
Unlike the other forms in this library, the SF 1408 is filled out ABOUT you, not BY you: it is the surveying activity's (typically DCAA/DCMA) record of whether your accounting system is acceptable for a cost-type or progress-payment award. Solicitations often ask offerors to submit it as a self-assessment — but every YES you mark must be demonstrable when the auditor walks through your system.
Section I — the verdict
| Block | Label on the form | Who fills it in, and with what |
|---|---|---|
| I-1 | PROSPECTIVE CONTRACTOR'S ACCOUNTING SYSTEM IS ACCEPTABLE FOR AWARD — YES / YES, WITH A RECOMMENDATION FOR A FOLLOW-ON REVIEW AFTER AWARD / NO (Explain in Narrative) | Surveyor's recommendation |
| I-2 | NARRATIVE (Clarification of deficiencies and other pertinent comments) | Surveyor — deficiencies explained here |
| I-3 | SURVEY MADE BY — signature/office, telephone, date | Surveyor |
| I-4 | SURVEY REVIEWING OFFICIAL — signature/office, telephone, date | Reviewing official |
Section II — the checklist your system must pass
Each item is marked YES / NO / NOT APPLICABLE. In plain terms, the system must show:
| Block | Label on the form | Who fills it in, and with what |
|---|---|---|
| II-1 | Accounting in accord with GENERALLY ACCEPTED ACCOUNTING PRINCIPLES | GAAP-based books |
| II-2a | Proper segregation of direct costs from indirect costs | The #1 requirement: job costs vs. overhead, cleanly separated |
| II-2b | Identification and accumulation of direct costs BY CONTRACT | Job-cost ledgers per contract |
| II-2c | A logical and consistent method for allocating indirect costs to intermediate and final cost objectives | Documented overhead allocation bases |
| II-2d | Accumulation of costs under GENERAL LEDGER CONTROL | Job costing ties to the GL, not a side spreadsheet |
| II-2e | A TIMEKEEPING SYSTEM that identifies employees' labor by intermediate or final cost objectives | Timesheets coded to contracts/tasks |
| II-2f | A LABOR DISTRIBUTION SYSTEM that charges direct and indirect labor to the appropriate cost objectives | Payroll flows to those same cost objectives |
| II-2g | Interim (AT LEAST MONTHLY) determination of costs charged to a contract through routine posting of books of account | Monthly closes, not annual cleanups |
| II-2h | Exclusion from contract costs of amounts UNALLOWABLE under FAR 31 | Unallowables (entertainment, interest, …) screened out |
| II-2i | Identification of costs by CONTRACT LINE ITEM and by units, if required by the proposed contract | CLIN-level costing when the contract demands it |
| II-2j | Segregation of PREPRODUCTION costs from production costs | Where relevant |
| II-3a | Financial information required by LIMITATION OF COST clauses (FAR 52.232-20/-21) or LIMITATION ON PAYMENTS (FAR 52.216-16) | You can see the 75/85% notification points coming |
| II-3b | Financial information required to support PROGRESS PAYMENT requests | If you'll bill progress payments |
| II-4 | Adequate, reliable data for use in PRICING FOLLOW-ON acquisitions | History usable for future proposals |
| II-5 | IS THE ACCOUNTING SYSTEM CURRENTLY IN FULL OPERATION? (If not, describe which portions are (1) in operation, (2) set up but not in operation, (3) anticipated, (4) nonexistent) | Operating today — or the narrative must say exactly what isn't yet |
Common mistakes
- Marking item II-5 "No" without the required breakdown. The form itself demands a narrative describing which portions are in operation, set up, anticipated, or nonexistent — a bare "system coming soon" fails.
- No timekeeping/labor distribution tied to cost objectives (II-2e/2f) and no direct/indirect segregation (II-2a) — the classic small-contractor deficiencies in pre-award accounting surveys. (Practice observation, consistent with the checklist's structure.)
- Submitting a self-assessed SF 1408 full of aspirational YES answers. The form is the government surveyor's record — every YES must be demonstrable in the live system when DCAA tests it.
FAQ
Who fills out the SF 1408?
The government surveying activity (typically DCAA or DCMA) during a preaward survey under FAR 9.106 — though solicitations for cost-type work often ask offerors to submit one as a self-assessment first.
What does the SF 1408 checklist require of an accounting system?
GAAP-based books with direct/indirect cost segregation, job costing by contract, documented indirect allocation, general ledger control, timekeeping and labor distribution by cost objective, monthly postings, FAR 31 unallowable screening, and support for limitation-of-cost and progress-payment clauses.