DHS Has Improved Some Aspects of Its Procurement Oversight but Guidance Is Not Sufficiently Updated

OCPO’s oversight has helped ensure that components address  constructive assessments of their compliance with procurement  regulations and policies and has increased the Chief Procurement  Officer’s visibility into components’ progress against procurement-related  metrics. OCPO has been less consistent in—but continues to hone—its  implementation of other aspects of the program, including self  assessments and parts of its acquisition planning reviews. However, at  the time of our review, DHS had not issued updated policy or guidance  reflecting OCPO’s current approach to procurement oversight, which led  to a lack of clarity for components regarding what the oversight efforts  entail. Components Leverage Buying Power through DHS’s Strategic Sourcing Program

		Components Actively Support DHS’s Strategic Sourcing Program

DHS component officials stated that most of their efforts to leverage  buying power are through the department’s strategic sourcing program,  which facilitates the development and award of contracts for the purchase  of specific items or services across DHS. According to DHS data, DHS’s  spending through strategic sourcing contract vehicles has increased  steadily from $1.8 billion in fiscal year 2008, to almost $3 billion in fiscal  year 2011, representing about 20 percent of DHS’s $14 billion in  procurement spending for that year. The department also has several new initiatives  under development. for goods and services ranging from ammunition to  DHS policies encourage components to consider, but do not require, the  use of departmentwide strategic sourcing contract vehicles. The Chief Procurement Officer has identified increasing strategic sourcing  as a departmentwide priority and OCPO encourages the utilization and  development of strategic sourcing vehicles in a variety of ways. OCPO  officials explained that they host quarterly meetings and training sessions  with the DHS Strategic Sourcing Working Group, meet with individual  component programs and procurement offices, and post all contract  information and ordering guides on the strategic sourcing web page. Components Have Leveraged Contracts with Other Agencies

Some components offered examples of contracts they leveraged with  other agencies. However, most components  found it more efficient to use DHS’s strategic sourcing vehicles than to  leverage contracts with other agencies. Recommendation for Executive Action

In order to help ensure that DHS component officials understand what  OCPO expects of them in its procurement oversight, we recommend that  the Secretary of Homeland Security direct the Chief Procurement Officer  to review and ensure consistency between Directive 143-05 and the  Procurement Oversight Program Guidebook and with the department’s  current procurement oversight efforts. The  draft included a recommendation that DHS issue updated policy and  guidance to reflect changes to the department’s procurement oversight  efforts. In written comments, the department concurred with our findings  and recommendation. Appendix I: Scope and Methodology

The objectives of this review were to (1) assess the Department of  Homeland Security’s (DHS) efforts to implement procurement oversight,  and (2) identify DHS components’ use of strategic sourcing to leverage  their buying power. To assess DHS efforts to implement procurement oversight, we examined  DHS’s procurement oversight policies and guidance; reviewed prior GAO  reports on acquisition and procurement oversight; interviewed  knowledgeable officials from the Office of the Chief Procurement Officer  (OCPO) and from DHS components; and examined OCPO and  component documentation of oversight efforts, including OCPO’s review  schedule, quarterly reports, goal letters, operational status reports, and  documentation of on-site reviews from 2007 to the present.
Why GAO Did This Study

DHS bought over $14 billion in goods and services in fiscal year 2011--over one quarter of its budget--and processed over 100,000 transactions to support its homeland security missions. In 2005, DHS established an oversight program to provide department-level insight into components' procurement of goods and services and to identify successful acquisition management approaches. DHS has also established specific initiatives, such as a strategic sourcing program in 2003 to reduce procurement costs and gain other efficiencies by consolidating requirements. GAO (1) assessed DHS's efforts to implement procurement oversight, and (2) identified DHS components' use of strategic sourcing to leverage their buying power. To do this, GAO reviewed procurement oversight policies and guidance, interviewed officials from OCPO and DHS components, reviewed prior GAO reports, reviewed on-site review findings and recommendations, and examined DHS and component documentation of oversight and strategic sourcing efforts.

What GAO Found

The Department of Homeland Security's (DHS) Office of the Chief Procurement Officer (OCPO) continues to implement and has improved some aspects of its procurement oversight but has not sufficiently updated its guidance. OCPO's oversight has helped ensure that DHS components receive and address constructive assessments of their compliance with procurement regulations and policies. The oversight also has increased the Chief Procurement Officer's visibility into components' progress against procurement-related metrics. For example, OCPO establishes annual procurement goals for the components and tracks their progress in quarterly reports. OCPO has been less consistent in--but continues to hone its implementation of--other aspects of the program, such as self assessments and parts of its acquisition planning reviews. However, until GAO sent DHS a draft of this report recommending that DHS issue updated policy and guidance to reflect changes to the department's procurement oversight efforts, the department did not issue updated policy or guidance. This has led to a lack of clarity among components regarding what the oversight efforts entail. For example, some components did not complete a required self assessment in 2011. GAO's review of the revised policy and guidance found inconsistencies between the two and with current oversight efforts.
DHS component officials stated that most of their efforts to leverage buying power are through the department's strategic sourcing program, which provides departmentwide contract vehicles for the purchase of specific items or services. According to DHS data, the department's spending through strategic sourcing contract vehicles has increased steadily from $1.8 billion in fiscal year 2008 to almost $3 billion in fiscal year 2011, representing about 20 percent of DHS's procurement spending for that year. The Office of Management and Budget has recognized some of DHS's strategic sourcing efforts as best practices. DHS policies encourage components to consider, but do not require, the use of strategic sourcing contract vehicles. The Chief Procurement Officer has identified increasing strategic sourcing as a departmentwide priority and OCPO encourages the utilization and development of strategic sourcing contract vehicles in a variety of ways, including hosting quarterly training sessions and posting contract information on the strategic sourcing web page. In addition, while components have leveraged contracts with other agencies, many found it more efficient to use DHS's strategic sourcing contract vehicles. DHS components generally do not use other components' contracts.

What GAO Recommends

Based on DHS's actions in response to the recommendation contained in the draft report, GAO recommends that the Secretary of Homeland Security direct the Chief Procurement Officer to review and ensure consistency between the new procurement oversight directive and guidebook and with the department's current procurement oversight efforts.