Defense Finance and Accounting Service Contract for Military Retired and Annuitant Pay Functions
INSPECTOR GENERAL DEPT OF DEFENSE ARLINGTON VA
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At the request of Congressman Dennis J. Kucinich, we reviewed the Defense Finance and Accounting Service DFAS contract for military retired and annuitant pay functions. Specifically, we reviewed contractor performance, costs, and staffing, as well as the Governments management of the contract. We also performed a limited review of policies and procedures for voucher prepayment examination. The DFAS Continuing Government Activity CGA did not adequately monitor contractor performance for six of the seven critical performance standards on its 346 million 10-year services contract with Lockheed Martin for the military retired and annuitant pay functions. DFAS also did not collect 547,236 in deductions for unsatisfactory performance. The call center for military retired and annuitant pay functions operated by Lockheed Martin was providing service to DFAS callers that is far below industry standards. For 2008, the call center monthly average call abandonment rates ranged from 11.0 to 40.6 percent compared to an industry standard of 4.0 percent. In addition, time to answer calls ranged from 108 to 280 seconds compared to an industry standard of 26 seconds.
- Administration and Management
- Economics and Cost Analysis