What you need to complete the prequalification documents

Financial information should reflect the most recent completed fiscal year and must be submitted no later than six months after the close of that fiscal year.


1. Overhead Schedule

Overhead rate is audited by a state DOT, federal agency or an Independent CPA

Overhead rate is not audited:

Balance Sheet
General Ledger account balances
Tax return
Include all financial documents used to prepare the overhead rate schedule

Expenses listed on the overhead must be traceable to the financial documents.


2. Written Policies to include but not limited to the following:


Accounting System
Billing
Cost estimating/allowability
Recording time worked/timesheet preparation
Fringe Benefits/leave time
Recording overtimeCompliance with FAR Part 31 and applicable CAS
Recording direct and indirect costs
Overhead/indirect cost rate development
Billing rate development
Bonus
Information Technology (IT) Systems


If no written policies have been developed, provide the following:


An explanation of the timekeeping entry, adjustment and approvals practices to include the process used to track uncompensated overtime for salaried employees. The explanation must include a description of how labor hours are segregated between direct and indirect labor costs with identification of unallowable costs.


An explanation of the firm’s ITS systems maintenance and security.


An explanation of how the firm consistently applies their bonus practices. Include information regarding stock option and distribution of profits.


An explanation of how the firm tracks insurance costs eliminates Key Man Life Insurance costs. If your firm cannot segregate Key Man Life Insurance costs from your firm’s Life Insurance policies, those costs must be removed from the overhead.