ProcurementAudit finds DHS dramatically improved its acquisition process

A recent audit by the DHS Inspector General found that the department had dramatically improved its oversight of contracts and reduced the number of noncompetitive contracts awarded by 60 percent last year.

In 2010 DHS awarded $1.3 billion in no compete contracts compared to $3.4 billion in 2009 and $3.5 billion in 2008.

The report also stated that procurement officials at DHS had improved their oversight of noncompetitive contracts, maintaining sufficient documentation and research to justify noncompetitive contracts.

The inspector general reviewed forty noncompetitive contracts worth roughly $100 million dollars and found that the rate of deficiencies was only 7 percent. In 2008 similar reviews found that 76 percent of files had deficiencies, while in 2009 that number was 79 percent.

While the report found marked improvements, it also recognized that there were still gaps in DHS’ acquisition process.

Anne Richards, assistant inspector general for audits, wrote, “Acquisition personnel did not always document consideration of contractor past performance when performing background research of eligible vendors. As a result, the department cannot be sure that it received the best possible value on the goods and services acquired through these contracts, or that acquisition personnel awarded government contracts to eligible and qualified vendors.”

The report recommended that DHS improve its documentation of contracts. More than 40 percent of the contracts that were examined lacked proper documentation, while eleven of the forty contracts examined lacked research to show that past performance had been taken into account.

“The department needs to continue its emphasis on better planning and documenting its acquisitions and decision-making processes,” Richards wrote.

To that end, Homeland Security Secretary Janet Napolitano has requested $24.2 million in its 2012 budget to hire an additional 150 people for its acquisitions workforce.

Before the House Homeland Security committee last week, Napolitano testified that improving the acquisition process had contributed to her department’s overall identification of more than $800 million in cost savings.

“We are preserving essential front-line operations and bolstering our operational strength by decreasing administration and overhead,” she said.