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Summary

Our audit of TSA’s oversight of its security-screener contracts found that, based on their hourly rates, six of 13 large contractors charged TSA about $305 million more for passenger-screening services than they previously charged air carriers for similar work. TSA deployed a Federal workforce to screen passengers at all airports but has not yet negotiated final contracts with 18 of 74 contractors as of February 26, 2003, including 11 large contractors. TSA is withholding more than $90 million in payments to contractors that had significantly increased their rates to TSA, pending completion of an audit by the Defense Contract Audit Agency, and it reported contract management as a “material internal-control weakness.”