COMPETITIVE SOURCING: Health Benefits Cost Comparison Had Minimal Impact, but DOD Needs Uniform Implementation Process
Abstract
Most DOD components implemented the health benefit cost provision usinga process designed to ensure that private sector proposals include anamount for employee health benefits at least equal to the amount that Officeof Management and Budget Circular A-76 requires to be added to agencycost estimates to account for employee health benefits. Under Circular A-76,this amount is 5.5 percent of direct labor costs. The Defense LogisticsAgency (DLA), however, used a different process designed to determinewhether a private sector offerors monthly health benefit premiumcontributions are at least equal to DODs. While DODs and DLAs processesare both reasonable approaches, the use of different processes could resultin different competitive sourcing outcomes in some cases.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2005
- Accession Number
- AD1157173
Entities
People
- William Woods
Organizations
- United States Government Accountability Office