Client success · Government Contractor Services · DCAA / SF 1408
At a glance: a large multi-state company entering government contracting, multiple shared service centers and accounting systems, an SF 1408 accounting system review delivered in four weeks, and a client that came back for the same work.
The situation
A large, established multi-state company was entering the government contracting market. To compete for government contracts, it needed its accounting system reviewed against DCAA's SF 1408 requirements on a tight deadline. Its existing accounting firm could not begin for two to three months.
The ask
Could we complete the review within four weeks, and did we have the resources to do it?
What we did
We accepted the engagement and assigned a dedicated team. The company ran several shared service centers, each with its own accounting systems and processes.
We walked through every system, documented how transactions and costs flowed between the centers, and performed an extensive review of the company's books. We then tested the full accounting system against each SF 1408 criterion, the standard DCAA uses to judge whether a contractor's accounting system is adequate.
The result
Within four weeks, we issued our letter. It included an SF 1408 checklist covering each requirement, and a cover letter describing every procedure we performed and what we found. The client met its contracting deadline.
The client came back
A few years later, the same company returned to VG CPA PC for the same DCAA compliance work.
Why it matters
Established companies entering government contracting often run complex, multi-system operations that weren't built for DCAA requirements. VG CPA PC has the government contracting expertise and team capacity to review complex systems on tight deadlines, and our clients come back because the work holds up.
Entering government contracting or facing a DCAA deadline? Tell us your timeline. Talk to an advisor
Questions business owners ask
What is an SF 1408 review?
It tests a contractor's accounting system against the SF 1408 criteria that DCAA and contracting officers use to decide whether the system is adequate for cost-type government contracts.
Does a large commercial company need an SF 1408 review before its first government contract?
Often, yes. Before awarding a cost-type contract, the government checks whether the contractor's accounting system meets the SF 1408 criteria. Commercial accounting systems often need changes first.
Can an SF 1408 review cover a company with multiple shared service centers and systems?
Yes. We walk through each system, document how costs move between centers, and test the combined accounting system against every SF 1408 criterion.
How long does an SF 1408 accounting system review take?
It depends on the company's size and records. For this large multi-state company, we completed it in four weeks.