The Office of the Inspector General (OIG) maintains a recently completed audit determined the Department of Homeland Security (DHS) lacks contract management policy and guidance.
The OIG said DHS components did not always properly solicit, award, and manage contracts according to federal and departmental regulations. Additionally, components did not document oversight in the procurement files for 18 of the 29 contract files reviewed, representing $112.1 million of the $153.2 million contract actions awarded in fiscal year 2016.
The audit findings revealed while DHS has taken steps to improve oversight of acquisition programs costing more than $300 million, acquisitions costing less than $300 million are at risk of receiving less attention. The audit work focused on reviewing $153.2 million of the $2.4 billion in contract actions DHS awarded.
The analysis determined there was a lack of a comprehensive contract management process for maintaining contract files and reviews conducted by procurement personnel did not ensure contract personnel performed the required procurement processes.
The audit findings also noted components lost procurement documents, mismanaged contracts, and did not adhere to contract policy requirements. The circumstances resulted in misspent funds and impaired the government’s ability to act when contractors did not comply with the procurements.
OIG recommendations include requiring the DHS Component Heads of Contracting Activities establish supplemental management procedures and guidelines or revise current policies that help prevent the loss of contract files; require monitoring and maintenance of contract files under department and component policies; and approve contracts within their warrant authority.
The OIG said DHS’s Chief Procurement Officer did not agree with the recommendations and asserted the report lacked the basis to arrive at the OIG’s conclusions.