DHS Contracting Decisions For A Broad Range Of Activities Were Largely Driven By A Lack Of Staff And Expertise And Immediacy Of Need

A broad range of program-related and administrative activities was  performed under the professional and management support services  contracts we reviewed. DHS decisions to contract for these services were  largely driven by the need for staff and expertise to get programs and  operations up and running. While DHS has identified core mission-critical  occupations and plans to reduce skill gaps in core and key competencies,  it has not directly addressed the department’s use of contractors for  services that closely support the performance of inherently governmental  functions. Figure 1  shows the type and range of services provided in the nine cases and the  location of contractor performance. DHS’s human capital plan is unclear as to how this could be  achieved and whether it will inform the Department’s use of contractors  for services that closely support the performance of inherently  governmental functions. DHS Did Not Consider Risk Or Provide Enhanced Oversight When Contracting For Selected Services

While program officials generally acknowledged that their professional  and management support services contracts closely supported the  performance of inherently governmental functions, they did not assess the  risk that government decisions may be influenced by, rather than  independent from, contractor judgments—as required by federal  procurement policy. In addition, none of the program officials and  contracting officers we spoke with was aware of these requirements, and  few believed that their professional and management support service  contracts required enhanced oversight. Federal guidance also states that  agency officials must retain control over and remain accountable for  policy and program decisions. For the nine cases we reviewed, the level of  oversight DHS provided did not always help ensure accountability for  decisions or the ability to judge whether contractors were performing as  required; however, DHS’s Chief Procurement Officer is implementing an  acquisition oversight program with potential to address this issue. This program was designed to allow flexibility to  address specific procurement issues and is based on a series of reviews at  the component level that could address selected services.
Why GAO Did This Study

In fiscal year 2005, the Department of Homeland Security (DHS) obligated $1.2 billion to procure four types of professional and management support services. While contracting for such services can help DHS meet its needs, using contractors to provide services that closely support inherently governmental functions increases the risk of government decisions being influenced by, rather than independent from, contractor judgments. This testimony summarizes our September 2007 report to this Committee and others and focuses on (1) the types of professional and management support services DHS has contracted for and the circumstances that drove its contracting decisions, and (2) DHS's consideration and management of risk when contracting for such services. GAO analyzed 117 statements of work and 9 case studies in detail for selected contracts awarded in fiscal year 2005 by the Coast Guard, the Office of Procurement Operations, and the Transportation Security Administration.

What GAO Found

A broad range of program-related and administrative activities was performed under the four types of professional and management support services contracts we reviewed--program management and support, engineering and technical, other professional, and other management support. DHS decisions to contract for these types of services were largely driven by the need for staff and expertise to get programs and operations up and running. While DHS has identified core mission critical occupations and plans to reduce skill gaps in core and key competencies, it is unclear whether this will inform the department's use of contractors for services that closely support the performance of inherently governmental functions. Program officials generally acknowledged that their professional and management support services contracts closely supported the performance of inherently governmental functions, but they did not assess the risk that government decisions may be influenced by, rather than independent from, contractor judgments--as required by federal procurement guidance. In addition, none of the program officials and contracting officers we spoke with was aware of these requirements, and few believed that their professional and management support service contracts required enhanced oversight. Federal guidance also states that agency officials must retain control over and remain accountable for policy and program decisions. For the nine cases we reviewed, the level of oversight DHS provided did not always help ensure accountability for decisions or the ability to judge whether contractors were performing as required. DHS's Chief Procurement Officer is implementing an acquisition oversight program--designed to allow flexibility to address specific procurement issues--with potential to address this issue.