For three years TSA has awarded cost-reimbursement contracts that include award fee components for screening services that are partly based on contractor cost-savings, but if contractor operations cost more TSA has to foot the bill, something GAO said limits the opportunity for cost-savings with these contracts.
However, the agency plans to shift more cost-risk to contractors by competitively awarding fixed-price-award fee contracts for screening services at the four smallest airports that will participate in the SPP, the report said.
It said TSA also plans to competitively award fixed-price contracts for screening services at larger airports, but said it can’t do so until screening costs at those airports are better known — which TSA officials said could take a couple of years.
