Summary
In fiscal year 2005, the Department of Homeland Security (DHS) obligated $1.2 billion to procure four types of professional and management support services--program management and support, engineering and technical, other professional, and other management support. While contracting for such services can help DHS meet its needs, there is risk associated with contractors closely supporting inherently governmental functions--functions that should be performed only by government employees. This report (1) describes the contracted services, (2) identifies potential risk and the extent to which DHS considered risk when deciding to contract for these services, and (3) assesses DHS's approach to managing and overseeing these services. GAO analyzed 117 judgmentally selected statements of work and 9 cases in detail for contracts awarded in fiscal year 2005 by the Coast Guard, the Office of Procurement Operations (OPO), and the Transportation Security Administration (TSA).
More than half of the 117 statements of work that GAO reviewed provided for reorganization and planning activities, policy development, and acquisition support--services that closely support the performance of inherently governmental functions. Other such services supporting a broad range of programs and operations at Coast Guard, OPO, and TSA included budget preparation, regulation development, and employee relations. Decisions to contract for professional and management support services were driven by the need for staff and expertise to get programs and operations up and running. However, for the nine cases we reviewed, program officials did not assess the risk that government decisions may be influenced by, rather than independent from, contractor judgments. These cases included services that have the potential to increase this risk. For example, contractors directly supported DHS missions and performed on an ongoing basis work comparable to that of government employees. Most of the nine contracts also lacked detail or covered a wide range of services. Conditions such as these need to be carefully monitored to ensure the government does not lose control over and accountability for mission-related decisions. DHS has not explored ways to manage the risk of these contractor services, such as through total workforce deployment across the organization. The level of oversight DHS provided did not always ensure accountability for decisions or the ability to judge whether the contractor was performing as required. Federal acquisition policy requires enhanced oversight of contracts for services that can affect government decision making, policy development, or program management. While contracting officers and program officials acknowledged their professional and management support services contracts closely supported inherently governmental functions, they did not see a need for increased oversight. Insufficient oversight increases the potential for a loss of management control and the ability to ensure intended outcomes are achieved.
Recommendations
Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
Director:
Team:
Phone:
John P. Hutton
Government Accountability Office: Acquisition and Sourcing Management
(202) 512-7773
Recommendations for Executive Action
Recommendation: To improve the department's ability to manage the risk of selected services that closely support inherently governmental functions as well as government control over and accountability for decisions, the Secretary of Homeland Security should establish strategic-level guidance for determining the appropriate mix of government and contractor employees to meet mission needs.
Agency Affected: Department of Homeland Security
Status: Open
Comments: In providing comments on this report, DHS concurred with this recommendation. DHS is currently conducting studies to examine the acquisition workforce, which should include recommendations for the number of staff needed to manage DHS projects and programs. In addition, DHS is updating its Strategic Human Capital Plan, which may provide guidance for determining the appropriate mix of government and contract employees.
Recommendation: To improve the department's ability to manage the risk of selected services that closely support inherently governmental functions as well as government control over and accountability for decisions, the Secretary of Homeland Security should assess the risk of selected contractor services as part of the acquisition planning process, and modify existing acquisition guidance and training to address when to use and how to oversee those services in accordance with federal acquisition policy.
Agency Affected: Department of Homeland Security
Status: Open
Comments: In providing comments on this report, DHS partially concurred with this recommendation. The Office of the Chief Procurement Officer (OCPO) is currently reviewing contracting for selected services through the competitive sourcing program. For example, contracts from the Domestic Nuclear Detection Office are currently under review to consider the risk of contractors performing selected services. In addition, following GAO's audit work on this engagement, the DHS Chief Procurement Officer issued a memo that addresses, in part, concerns about inherently governmental functions in contracts and monitoring the level of contractors in the blended workforce.
Recommendation: To improve the department's ability to manage the risk of selected services that closely support inherently governmental functions as well as government control over and accountability for decisions, the Secretary of Homeland Security should define contract requirements to clearly describe roles, responsibilities, and limitations of selected contractor services as part of the acquisition planning process.
Agency Affected: Department of Homeland Security
Status: Open
Comments: In providing comments on this report, DHS concurred with this recommendation, stating in part that better requirements definitions will result in fewer Time and Materials (T&M) type contracts and more effective use of Performance-Based Service Contracts in DHS. DHS has initiated training that addresses the roles, responsibilities, and limitations of T&M contracts and has reduced the use of time and materials contracts.
Recommendation: To improve the department's ability to manage the risk of selected services that closely support inherently governmental functions as well as government control over and accountability for decisions, the Secretary of Homeland Security should assess program office staff and expertise necessary to provide sufficient oversight of selected contractor services.
Agency Affected: Department of Homeland Security
Status: Open
Comments: In providing comments on this report, DHS concurred with this recommendation, but has not yet taken actions to implement it. A DHS CPO representative stated that direction to program office staff regarding additional oversight should be provided when contracts for selected services are first established and appropriately staff assigned at that time.
Recommendation: To improve the department's ability to manage the risk of selected services that closely support inherently governmental functions as well as government control over and accountability for decisions, the Secretary of Homeland Security should review contracts for selected services as part of the acquisition oversight program.
Agency Affected: Department of Homeland Security
Status: Open
Comments: In providing comments on this report, DHS concurred with this recommendation, but has not yet taken actions to implement it. According to the Office of the Chief Procurement Officer, the oversight program is still in the process of being implemented, and DHS has not yet begun to collect data that would allow the department to conduct the proposed special investigations.
