DHS does not always comply with a provision in the Federal Acquisition Regulation to justify the selection of other than firm-fixed-price contracts and does not always assign acquisition workforce resources to manage other-than-firm-fixed-price contracts, the department’s inspector general has found.
In both fiscal 2009 and 2010, DHS obligated some $5 billion in other-than-firm-fixed price contracts, which inherently do not provide incentive to control costs.
The IG said DHS policies do not completely align with FAR Case requirements and in some instances acquisition personnel do not comply with existing policies. As a result, DHS may not award or manage these contracts properly, the IG said.
DHS said it would implement corrective actions to update and reaffirm DHS acquisition policy to comply with all FAR requirements for the use and management of other than firm-fixed-price contracts.
It also said it would reaffirm guidance – in the homeland security acquisition manual and acquisition workforce policies – to ensure acquisition personnel understand how the FAR Case requirements affect existing and future contracts and orders.
