DHS components did not always properly solicit, award, and manage contracts according to Federal and departmental regulations. In fiscal year 2016, DHS awarded $2.4 billion in contract actions that were valued at less than $300 million per action. For this audit, we reviewed $153.2 million of the $2.4 billion in contract actions that DHS awarded. We found that components did not document their oversight in the procurement files for 18 — about 62 percent — of the 29 contract files reviewed. This represented about $112.1 million of the $153.2 million contract actions awarded in fiscal year 2016. This occurred because components lacked a comprehensive contract management process for maintaining contract files, and reviews conducted by procurement personnel did not ensure that contract personnel performed the required procurement processes. As a result of these deficiencies, two contract files valued at $4.9 million could not be located. In one instance, DHS was unable to address contractor performance issues to recover about $1 million. Also of note, six procurement documents from four contracts valued at $9.4 million did not have authorized signatures, one contracting officer exceeded the warrant authority by $12,500, and two firm-fixed-price contracts totaling $2.3 million were not finalized. Furthermore, components lost procurement documents, mismanaged contracts, and did not adhere to contract policy requirements. These problems resulted in misspent funds and impaired the government’s ability to take action when contractors do not comply with the terms of the procurement.
Tuesday, July 2, 2019
Agency Reviewed / Investigated:
Submitting OIG-Specific Report Number:
Component, if applicable:
Management Directorate (Management)
Type of Report:
Number of Recommendations: