Here's a good example of the difference between FAR requirements and the requirements for purchasing system approval. When you read FAR Part 16 you'll notice that determination of accounting system adequacy (accomplished by the Government via DCAA accounting system audit and/or contractor completion of SF1408) is only required prior to award of a cost reimbursable contract. However, DCMA wants to see a determination of accounting system adequacy prior to award of ANY "flexibly priced" subcontract, including T&M & Labor Hour subcontracts.