HRS §103D-314
Approval of accounting system
For most contracts, the government must check the contractor's accounting system in writing before using the contract. The system must be able to produce cost data on time and follow standard accounting rules. This does not apply to fixed-price contracts.
contractorscourts
The statute, as written — Approval of accounting system
Except with respect to firm fixed-price contracts, no contract shall be used unless it has been determined in writing by the chief procurement officer, the head of a purchasing agency, or a designee of either officer that: (1) The proposed contractor's accounting system will permit timely development of all necessary cost data in the form required by the specific contract type contemplated; and (2) The proposed contractor's accounting system is adequate to allocate costs in accordance with generally accepted accounting principles. [L Sp 1993, c 8, pt of §2]
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