Review of Contractors' Pension and Other Benefits for Employees Working at NASA's Scientific and Technical Information Facility

GAO reviewed the allegations made by a former professional employee of the National Aeronautics and Space Administration's (NASA) Scientific and Technical Information Facility (STIF). NASA selected the Planning Research Corporation (PRC) as the new contractor to operate STIF. According to the former employee's claims, PRC will discontinue making contributions for pension benefits for the employees at STIF and will make no contributions for pension benefits for 3 years. It was also requested that GAO determine whether PRC followed the Office of Management and Budget's Office of Federal Procurement Policy guidelines prohibiting wage busting of service contract employees.

GAO found that PRC: (1) will make contributions for STIF employees' pension benefits during the first 3 years of the contract; (2) will provide STIF employees fringe benefits which are comparable to the predecessor contractor; (3) has a pension plan for STIF employees that meets the participation and vesting requirements of the Employee Retirement Income Security Act; and (4) will permit employees to be fully vested in the PRC pension plan after 3 years of continuous service at STIF. In addition, GAO found no evidence that PRC was guilty of wage busting the employees at STIF.