Pension Costs: Oversight of Contractor Pension Costs Could Be Improved

摘要

The report is an assessment of the adequacy of the Department of Defense's (DOD's) audits of contractor pension costs. Contractor pension costs represent a significant element of defense contract costs. DOD spends $3 billion annually for its share of contractors' pension contributions included in contract prices. To monitor these costs, DOD relies on the Defense Contract Audit Agency (DCAA) and the Defense Contract Administration Services (DCAS)--an arm of the Defense Logistics Agency (DLA). Both agencies provide oversight of contractors' pension costs--DCAA as part of its regular contract audit responsibilities, and DLA through specialized DCAS contractor insurance/pension reviews.