Evaluation of Contractor Accounting and Estimating for Postretirement Benefit Costs and Related DOD Oversight
Abstract
During the review, the Defense Logistics Agency was the DoD executive agency responsible, through its Defense Contract Management Command, for conducting Contractor Insurance/Pension Reviews with the assistance of the Defense Contract Audit Agency. Effective March 27, 2000, the Defense Contract Management Agency was established, and it is now the responsible agency for conducting Contractor Insurance/Pension Reviews. The purpose of the reviews is to evaluate contractor insurance programs, pension plans, and other employee benefit plans. Contractor policies, procedures, and practices are reviewed to determine whether insurance and employee benefit costs charged to Government contracts comply with the Federal Acquisition Regulations and the Cost Accounting Standards. The Defense Federal Acquisition Regulations Supplement subpart 242.73, Contractor Insurance/Pension Review, provides that reviews should be performed on contractors that have actual or anticipated qualifying annual sales to the Government of $40 million or more on negotiated prime contracts or subcontracts. Health care benefits constitute about 80 percent and life insurance about 19 percent of all expenditures for postretirement benefits other than pensions. The General Accounting Office has reported that Medicare and health programs for retirees are high-risk areas.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 04, 2000
- Accession Number
- ADA381595
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense