How to Fill Out DD Form 1586: Contract Funds Status Report (CFSR)

To fill out DD Form 1586, the Contract Funds Status Report (CFSR), you complete the contract identification header in Items 1–8, then report contract pricing, funding, billings, and termination cost estimates in Items 9–14, following the field-by-field instructions in Data Item Description DI-MGMT-81468. The finished report goes to the recipient named in your contract’s CDRL in a readable digital format — XML is preferred — within 25 calendar days after the end of each calendar quarter.¹

Who Files a CFSR and When

The CFSR applies to DoD contracts that exceed both $1.5 million in value and six months in duration. Smaller contracts are not automatically exempt; the governing DID directs that they be evaluated so only the minimum reporting necessary for management control is imposed.²

Firm fixed-price contracts under FAR 16.202 are excluded unless unusual circumstances call for specific funding visibility. Cost-reimbursement, incentive, and time-and-materials contracts are the typical CFSR contracts, since funding levels shift as the work progresses.²

At minimum, the CFSR is quarterly. Higher-risk or more complex programs may require more frequent reporting. Unless your contract says otherwise, prepare the report as of the end of each calendar quarter (or the contractor accounting period nearest the quarter end) and forward it within 25 calendar days of that cutoff.¹

Where to Get the Form and Instructions

DD Form 1586 is listed on the Washington Headquarters Services forms page at esd.whs.mil under DoD Forms 1500–1999. If the form number is not hyperlinked, it is not available for electronic download, and you should contact your Military Service or DoD Component Forms Management Officer for hard copies.³ The WHS page for DD Form 1586 directs users to the Under Secretary of Defense for Acquisition and Sustainment for guidance on proper use.⁴

Before your first submission, pull DI-MGMT-81468 from the Defense Logistics Agency’s ASSIST-QuickSearch database.⁵ That DID is the authoritative field-by-field reference and controls when this article and the form itself disagree.

Items 1–8: Contract and Party Identification

The header identifies the contract, the appropriation funding it, and the parties. Each item has a specific format.¹

Item 1, Contract Number: the assigned contract number plus the latest modification number on which contractual agreement has been reached.
Item 2, Contract Type: the FAR Part 16 designation, such as Cost Plus Fixed Fee (CPFF) or Fixed Price Incentive (FPI).
Item 3, Contract Funding For: Multi-Year Procurement (MYP), Incrementally Funded Contract (INC), or Single Year Contract (SYC).
Item 4, Appropriation: the appropriation name (for example, Research, Development, Test and Evaluation, or Aircraft Procurement) and the DoD Component.
Item 5, Previous Report Date: the cutoff date of the last report, Year/Month/Day.
Item 6, Current Report Date: the cutoff date for this report, Year/Month/Day.
Item 7, Contractor: name, division if applicable, and mailing address.
Item 8, Program: the program name, or the type, model, series, or other military designation of the items being procured.

Items 9–14: Financial Data

The financial section is the substance of the report. It shows where contract funds stand today and where they are headed.¹

Items 9 and 10: Contract Pricing

Item 9 captures the initial negotiated contract target price (or the estimated price for non-incentivized contracts) and the contract ceiling price where applicable. Item 10 captures the adjusted contract target price — the initial price plus any supplemental agreements — and the adjusted ceiling. The pair shows how far the contract has moved from where it started.

Item 11: Funding Information

Item 11 is the largest block on the form and the one Program Managers read first. Report by line item or Work Breakdown Structure element across the following columns:

Column a, Line Item / WBS Element: the line items or WBS elements specified for CFSR coverage.
Column b, Appropriation Identification: the appropriation number tied to each line item.
Column c, Funding Authorized to Date: contract funding authorized from the beginning of the fiscal year through the current report date.
Column d, Accrued Expenditures Plus Open Commitments: cumulative accrued expenditures plus outstanding commitments.
Column e, Contract Work Authorized (Definitized): estimated price for authorized work where the parties have reached contractual agreement, including profit, fee, and incentive adjustments.
Column f, Contract Work Authorized (Not Definitized): estimated funds needed for required work where firm prices have not yet been agreed to.
Column g, Subtotal: the sum of Columns e and f.
Column h, Forecast (Not Yet Authorized): estimated funds for changes proposed by either party but not yet directed by the Contracting Officer.
Column i, Forecast (All Other Work): estimated funds for additional work you anticipate submitting to the government but have not yet included in a formal proposal.
Column j, Subtotal: the sum of Columns h and i.
Column k, Total Requirements: the sum of Columns g and j.

The line between Columns e and f is where most CFSR errors happen. Work that the Contracting Officer has directed but that has not yet been priced through a supplemental agreement belongs in Column f, not Column e. Reporting it as definitized overstates the certainty of your cost position and creates reconciliation problems on the next report.

Items 12–14: Work, Billings, and Termination Costs

Item 12 breaks contract work authorized (with fee or profit) into open commitments, accrued expenditures, and a total. Item 13 forecasts billings to the government: the first column captures the cumulative amount already received plus any unpaid billings through the current report date, and each succeeding column captures the amount you expect to bill during each future reporting period. Item 14 estimates termination costs — the additional amounts beyond Item 12 that would be needed to liquidate all government obligations if the contract were terminated during each reporting period. That termination estimate is one of the core reasons the CFSR exists, and Program Managers use it for contingency planning.¹

How to Submit the Report

DoD requires CFSR data in a readable digital format. PDFs are explicitly not acceptable. The preferred format is Extensible Markup Language (XML) using the Project Schedule Cost Performance Management message standard. ANSI X12 (the 839 transaction set) is also acceptable for electronic data interchange. Online access to the data can supplement a formal submission but does not replace one.²

The recipient, the number of copies, and any format specifics are set out in the Contract Data Requirements List (CDRL), DD Form 1423, incorporated into your contract. Read the CDRL before every submission; it, not the DID, tells you where the report goes for this particular contract.¹

What Late or Inaccurate Reporting Can Cost You

Under FAR 52.232-16, the Contracting Officer can reduce or suspend progress payments, increase the liquidation rate, or combine those actions if the contractor fails to comply with a material contract requirement or if performance is endangered by a failure to make progress or an unsatisfactory financial condition.⁶

DFARS 252.242-7005 gives the Contracting Officer separate authority to withhold payments when a contractor’s business systems, including accounting and estimating systems, contain material weaknesses. The withholding rate is 5 percent of amounts due from progress payments and interim cost vouchers for weaknesses in a single system, and up to 10 percent across multiple systems. Withholding continues until the Contracting Officer confirms the weaknesses have been corrected, and the withheld amounts are not subject to Prompt Payment Act interest.⁷

How Long to Keep the Records

Under FAR Subpart 4.7, contractors must make records available for at least three years after final payment on the contract, or for the period specified for particular record types, whichever expires first.⁸ Keep CFSR submissions and their supporting workpapers for the full three-year period after final payment; these reports show up in audits and contract closeout reviews. If litigation, claims, or disputes remain unresolved at final payment, the retention clock does not start until those are settled.

1
Department of Defense. Contract Funds Status Report (CFSR) – DI-MGMT-81468
2
Warfighting Acquisition University (WarU). Contract Funds Status Report (CFSR)
3
Washington Headquarters Services. DoD Forms 1500-1999
4
Washington Headquarters Services. DD Form 1586
5
ASSIST-QuickSearch. DI-MGMT-81468 – Contract Funds Status Report (CFSR)
6
Acquisition.GOV. 52.232-16 Progress Payments
7
Acquisition.GOV. 252.242-7005 Contractor Business Systems
8
Acquisition.GOV. FAR Subpart 4.7 – Contractor Records Retention