Government Specific Systems
Sabreliner's practice of obtaining and maintaining system-level government approvals for the company's internal property control, procurement and financial/accounting systems provides assurance of our reliability and suitability for performance of all government work. These in-place approvals allow immediate assessment that contracting risk is low during government procurement evaluations. They also greatly reduce the government's administrative workload by eliminating the repetitive transaction-by-transaction auditing and oversight that would be necessary in the absence of government-approved systems.
Government Property Control System
Sabreliner has many years of successful experience with material control and inventory requirements for aviation programs, including almost 40 years as an aircraft OEM in our facilities and nearly 30 years as a government prime contractor or subcontractor. Material management and specific property controls are accomplished in accordance with specific contract requirements, Federal Acquisition Regulation (FAR) Part 45.5, "Government Property Management"; and our Government Property Control Manual. Our property control system and manual are government-approved and periodically audited by DCMA-St. Louis. The most recent audit was performed in May, 2009.
We manage an average of approximately $24 million worth of government property per year, including property storage and material work-in-process. Historically, our physical inventories of government property have resulted in a very minimal variance. This is an exceptionally low figure among government service providers, and as a result of the confidence gained, the government several years ago directed us to reduce the frequency of physical inventories from annual to biennial (every 2 years).
When we engage in management of government property at locations other than our own facilities, as during programs requiring stocking and issuing material on-base at government sites, we create a tailored appendix to our standard Property Control Manual that incorporates specific requirements applicable to that site, and this appendix is also submitted to DCMA for review and approval.
Government-Approved Procurement System
For nearly 30 years, Sabreliner has maintained a government-approved purchasing system for selecting and controlling its vendors. Although not currently required or approved, we believe that our system meets the requirements of Federal Acquisition Regulation (FAR) Subpart 44.3, "Contractors' Purchasing System Review", and Defense Federal Acquisition Regulation Supplement C, "Contractor Purchasing System Reviews." Our system ensures that we acquire material at the most advantageous prices available, with full regard to trade discounts, rebates, allowances, credits and other cost benefits that may be available to the program and the customer. The system also ensures full consideration of other purchasing priorities beyond cost alone, including supplier reliability for the safe and expeditious delivery of qualified material in order to satisfy all program requirements.
Sabreliner, as an aviation OEM with a Production Certificate and Repair Station Certificate, also fully complies with the stringent requirements of the Federal Aviation Administration for material procurement associated with FAA registered and/or type certificated aircraft and engines.
Government-Audited Financial System
The U.S. government's independent accounting and oversight group, the Defense Contract Audit Agency (DCAA), considers Sabreliner's accounting systems to be compliant with pre-award survey requirements listed under Standard Form 1408, verifying through audit the system's adequacy for accumulation, segregation and billing of cost under government contracts. DCAA has also confirmed that the accounting records of Sabreliner are reliable, compliant with control risk assessments and adequate to support progress payments and all other contract billing requirements. Sabreliner has gained distinctive billing privileges under Defense Federal Acquisition Regulation Supplement (DFARS) 242.803(b). This permits direct submission of interim public vouchers to government payment offices.
DCAA approvals are continually maintained and updated.
The established and government-accepted accounting systems in place at Sabreliner enable ready engagement in government contracts, allowing:
- Confidence in Sabreliner's financial accuracy and integrity
- Use of verified rates in bids and proposals without extensive cost supporting data
- Immediate award approvals by government and prime contractor agencies without extensive post-award examinations
- Timely submission of, and response to, billing and progress payment requests
- Greatly reduced oversight on a contract-by-contract basis