Security Beat 

DHS Promises More Penalties for Poorly Performing Contractors 

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By Stew Magnuson 

A senior Homeland Security official has promised more accountability after revelations that the department in its first years rarely ever suspended or debarred contractors for poor performance.

Elaine C. Duke, undersecretary for management at DHS, said the department has taken steps to hold contractors accountable.

“We have taken actions to improve our policies and procedures and will continue to look for ways to strengthen our contracting program,” she told the House Committee on Oversight and Government Reform.

At the same hearing, DHS Inspector General Richard Skinner testified that the department from fiscal years 2004 to 2008 initiated only one debarment case for contractor performance, and that was at the urging of the Defense Contract Management Agency. There were 23 cases where contracts were terminated for default or cause, but none of them were reviewed to determine if suspension or debarment were necessary, Skinner said.

The mechanisms are in place to carry out these punitive actions. However, “the department has been reluctant to apply these policies and procedures against poorly performing contractors,” he said.  

His investigation showed that DHS officials thought the actions were “too resource intensive.” They also believed that suspension and debarment were too harsh and would “have a negative impact on the contractor pool.”

“Reluctance to pursue suspension and debarment could put the department and the government at risk of continuing to conduct business with poorly performing contractors and may result in decreased productivity and increased cost,” Skinner said.

Duke said since 2007, DHS has initiated punitive actions against more than 240 contractors or individuals after it strengthened its procedures.

The department has set up a new performance review system and trained 3,000 of its personnel on its use. It has ordered them to enter the identities of contractors who performed poorly and whose contracts were terminated into federal databases so all federal agencies are aware of their records, she said.


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