206 ORGANIZING SCIENTIFIC RESEARCH FOR WAR 



was included in order that OSRD might reimburse contractors for ex- 

 penditures made under unusual circumstances and in good faith but which 

 might not fall within any of the other cost categories. Occasionally such 

 costs would be suspended by auditors or would be questioned in the fiscal 

 offices of the contractors. It was possible under this contract provision for 

 contractors to request special authorizations from the Contracting Officer 

 on such items, and if satisfactory explanations and adequate justifications 

 were furnished and the OSRD technical representative approved, they 

 were given. 



The OSRD fiscal policies and procedures were compiled by Cruikshank 

 in a mimeographed volume entitled Contract Manual (Fiscal) which was 

 distributed to OSRD contractors, OSRD personnel concerned, and inter- 

 ested Government agencies including the General Accounting Office, Bureau 

 of the Budget, War Department, and the Navy Department. The Manual 

 was kept current by the issuance of amendments which were sent to the 

 recipients of the original volume. The subjects covered in the Manual are 

 indicated in the Table of Contents: 



Foreword Travel 



OSRD No-Loss-No-Gain Policy Terminations 



Preliminary Negotiations Property Control 



Letters of Intent Reports and Other Special 



Principles and Provisions of Contracts Requirements 



Direct Costs Subcontracts 



Indirect Costs (Overhead) Vouchering Instructions 



Tax Exemption Advance Payments 



Insurance Approvals of Vouchers 



Salaries Miscellaneous 



Special Expenditures Exhibits 



Vouchering 



OSRD research contractors working on a no-profit-no-loss basis soon began 

 to complain about the normal requirements of the General Accounting 

 Office with respect to detailed itemization and substantiation of vouchers 

 submitted under their contracts. The experience of OSRD early indicated 

 that the usual vouchering procedures indirectly impaired the efficiency of 

 research through delays introduced in obtaining reimbursements for legiti- 

 mate costs. Research projects which were relatively small in size involved 

 large numbers of insignificant items of cost which made detailed itemiza- 

 tion unduly irksome and expensive. OSRD found that most contractors 

 capable of performing research work of the type it needed were of estab- 

 lished reputation; and it suggested to the Comptroller General that instead 

 of requiring the usual itemization and substantiation from research con- 



