Oversight of Contractor Pension Costs Could Be Improved
NSIAD-86-85
Published: Jun 23, 1986. Publicly Released: Jun 23, 1986.
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Highlights
GAO assessed the adequacy of the Department of Defense's (DOD) audits of contract pension costs. DOD relies on the Defense Contract Audit Agency (DCAA) and the Defense Contract Administration Services (DCAS) to monitor such costs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should take steps to ensure that DCAA and DCAS improve coordination and adhere more closely to procedures requiring coordinated pension reviews. |
Closed – Implemented
DOD agreed with this recommendation and has taken action to improve coordination of reviews by DCAA and DCAS. DLA was tasked to define and fix responsibilities for such reviews.
|
| Department of Defense | The Secretary of Defense should revise Federal Acquisition Regulation 31.205-6 to require that unallowable costs resulting from late funding of a contractor's pension plan be computed using short-term Treasury bill interest rates or other readily identifiable short-term rates in lieu of actuarially determined interest rates. |
Closed – Not Implemented
DOD did not concur with this recommendation.
|
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Topics
Audit oversightAuditing standardsContract costsDefense auditsDefense cost controlPensionsInterest ratesPension planAllowable costsGovernment contracts