[Response to Request for Opinion on Federal Employees' Acceptance of Certain Life Insurance Benefits]

The General Service Administration (GSA) requested an opinion concerning whether it could negotiate contracts for travel management services and contractor-issued credit cards offering life insurance coverage at no additional cost to the government for federal employees traveling on official business. GAO determined that it had no legal objection to the government entering into such contracts or to employees accepting benefits under these programs since: (1) there would be no discounts or rebates from the contractors if the government declined the coverage; and (2) the payment of life insurance proceeds would not constitute a conflict of interest since they are incident to a government contract.