Supplier Certification of Accounting/Billing System and Control

And
Supplier Certification of Annual Incurred Cost Proposal Submission
If you are a US company, please provide your
Federal Tax ID number, if you do not have one
please provide the social security number used for
NORTHROP GRUMMAN SUPPLIER NO. 406490 tax reporting.
CAGE CODE: 5s5j1 FEDERAL TAX IDENTIFICATION NO 76-0594069
DUNS NUMBER: 786733600 SOCIAL SECURITY NUMBER:
SUPPLIER NAME: E.J. Reynolds
SITE MANUFACTURING ADDRESS: 4252 FM 528
ZIP/POSTAL Code
CITY Alvin STATE TX (9 Digit) 77511
TELEPHONE NUMBER: 2813314556 FAX NO.
EMAIL ADDRESS sales@ejreynolds.com
PROVIDE NORTHROP GRUMMAN BUYER’S NAME (IF KNOWN)
Complete if different from Manufacturing Address above

CONTRACTURAL ADDRESS: 2151 Clifford St

ZIP/POSTAL Code
CITY Alvin STATE: TX (9 Digit) 77511

Section 1: Supplier Certification of Accounting/Billing System and Control

To ensure that Subcontractor’s accounting/billing system is adequate to report and

invoice costs incurred in performance of a flexibly-priced Purchase Order/Subcontract
awarded to Subcontractor and to support the determination of compliance to the
requirements of FAR Part 16.301-3(a)(1) and/or FAR Part 32.503-3(a)(2),
Subcontractor must provide one of the following as proof of certification. This
certification does not guarantee award of a Purchase Order or Subcontract to the
Subcontractor.
Please check one (1) appropriate box:

1. A copy of Subcontractor’s most recent U.S. Government letter reflecting the

status of Subcontractor’s accounting/billing system is submitted and attached to
this signed certification. Subcontractor certifies that the U.S. Government audit
resulted in a conclusion that the Subcontractor’s accounting/billing system was
adequate/acceptable, and compliant with applicable laws/regulations.
Subcontractor represents that the most recent U.S. Government letter provided
reflects the current status of Seller’s accounting system, which remains
approved. Subcontractor agrees to update Northrop Grumman’s Authorized
Purchasing Representative(s) of any change in Subcontractor’s accounting/
billing system status.

1A. The Government has reviewed our system within the past twelve (12)
months and noted minor control deficiencies requiring corrective
action. However, our system remains approved at this time. (Only
check if applies)
Revision Date: June 16, 2015
 2. The Government has reviewed our system within the past twelve (12) months
and noted significant deficiencies requiring corrective action. Our system has
been disapproved at this time. (complete checklist below)

3. Subcontractor hereby submits a copy of an independent third party opinion

attesting to the adequacy of the Subcontractor’s accounting/billing system.
Subcontractor agrees to update Northrop Grumman’s Authorized Purchasing
representative of any change in Subcontractor’s accounting/billing system status.
(complete checklist below)

3A. There have been no changes in our Accounting System within

the past twelve (12) months. Subcontractor continues to maintain
an acceptable accounting system and shall promptly notify
Northrop Grumman’s Authorized Purchasing Representative(s) , in
writing, of any identified deficiency. Subcontractor understands
that an acceptable accounting system is a condition of award, and
failure to maintain an acceptable accounting system as defined
above, may result in the withholding of payments or termination for
cause. (only check if applies and complete checklist below)

4. Subcontractor certifies that its job-cost (Cost Accounting) or general

accounting system follows Generally Accepted Accounting Principles
(GAAP), is currently in full operation, and meets the criteria found in the
checklist below (Sections a through r). Subcontractor agrees to update
Northrop Grumman’s Authorized Purchasing Representative(s) of any change
in Subcontractor’s accounting/billing system status.

4A. There have been no changes in our Accounting System within

the past twelve (12) months. Subcontractor continues to maintain
an acceptable accounting system and shall promptly notify
Northrop Grumman’s Authorized Purchasing Representative(s) , in
writing, of any identified deficiency. Subcontractor understands
that an acceptable accounting system is a condition of award, and
failure to maintain an acceptable accounting system as defined
above, may result in the withholding of payments or termination for
cause. (Only check if applies)

5. Subcontractor does not currently have an accounting/billing system that meets

the definitions above. Note: If this box is checked, Subcontractor may
only receive Firm-Fixed Price (FFP) awards.

Revision Date: June 16, 2015

 Checklist for question 2, 3 or 3a - Check Yes/No for each requirement YES NO
a. A sound internal control environment, accounting framework,
and organizational structure
b. Proper segregation of direct costs from indirect costs
c. Identification and accumulation of direct costs by contract
d. A logical and consistent method for the accumulation and
allocation of indirect costs to intermediate and final cost
objectives
e. Accumulation of costs under general ledger control
f. Reconciliation of subsidiary cost ledgers and cost objectives
to general ledger
g. Approval and documentation of adjusting entries
h. Periodic monitoring of the system
i. A timekeeping system that identifies employees’ labor by
intermediate or final cost objectives
j. A labor distribution system that charges direct and indirect
labor to the appropriate cost objectives
k. Interim (at least monthly) determination of costs charged to a
contract through routine posting of books of account
l. Exclusion from costs charged to Government contracts of
amounts which are not allowable in terms of Federal
Acquisition Regulation (FAR) part 31, Contract Cost
Principles and Procedures, and other contract provisions
m. Identification of costs by purchase order line item and by
units (as if each unit or line item were a separate contract) if
required by the proposed contract
n. Segregation of pre-production costs from production costs,
as applicable
o. Cost accounting information as required –
a) By contract clauses concerning limitation of cost (FAR
52.232-20), limitation of funds (52.232-22), or
allowable cost and payment (FAR 52.216-7); and
b) To readily calculate indirect cost rates from the books of
accounts

Revision Date: June 16, 2015

 p. Billings that can be reconciled to the cost accounts for both
current and cumulative amounts claimed and comply with
contract terms
q. Adequate, reliable data for use in pricing follow-on
acquisitions
r. Accounting practices in accordance with standards
promulgated by the Cost Accounting Standards Board, if
applicable, otherwise, Generally Accepted Accounting
Principles

Section 2: Supplier Certification of Annual Incurred Cost Proposal Submission

Please check all that apply:

1. We have adjusted our billings to reflect changes for Government approved

Interim Billing Rates and/or Final Negotiated Rates.

2. We have submitted our annual incurred cost proposal for CY(s)

and await approval of our CY billing rates.

3. The cognizant Government Audit Agency has granted an extension and our
annual incurred cost proposal will be submitted no later than .

Comments

Certification of Subcontractor
Subcontractor attests to the accuracy of the information provided above.
Subcontractor understands that they may be subject to costs, liabilities or penalties
imposed by Northrop Grumman or the United States Government if they have
misrepresented any of the information contained herein. Subcontractor further
acknowledges that Northrop Grumman shall rely on the information provided by
Subcontractor herein and that if any of the Subcontractor’s representations herein
change during the period of performance, Subcontractor shall provide immediate
written notice to the Northrop Grumman procurement representative and update
Subcontractor certification.

Revision Date: June 16, 2015

Typed Name of
Certifying Official Larry Hare Date 03/11/2022

Title QAM Telephone Number 2818241026

Revision Date: June 16, 2015