The report calls on DHS management to develop and implement a set of policies, procedures, and internal controls to ensure that contractors whose contracts have been terminated or are being considered for termination for default or cause, are reviewed to determine whether a referral to the suspension and debarment official is warranted.
The department agreed and said it has developed policies to increase its awareness of poorly performing contractors and that contracting officers must now provide the Office of the Chief Procurement Officer with a copy of the termination notice for any order exceeding $1 million.
The notice is to be accompanied by a brief discussion of the contract or order being terminated, the circumstances of the termination, and the anticipated impact.
Contracting officers must also provide a copy of any determination of non-responsibility to the suspending and debarring official when the determination is based on, for example, the lack of a satisfactory performance record under DHS contracts.
DHS also is planning a review of the extent to which components are complying with requirements in the homeland security acquisition manual.
The IG also called on DHS to ensure that all pertinent contractor performance information is recorded in the appropriate agency and government-wide databases to be disseminated to procurement professionals across government for use in future source selections.
DHS agreed and said it has conducted agency-wide training for contracting personnel, contracting officer’s technical representatives, and others involved in the process.
The department also has published updated guidance in its acquisition manual to prescribe policies and procedures that implement and supplement FAR guidance.
