Government Contracts Questioned
CBS News Investigative producer Laura Strickler wrote this story for CBSNews.com
The Transportation Security Administration (TSA) is unable to fully justify why it issued no-bid contracts to a series of vendors in 2006 including a contract worth up to $750 million, according to a new report from the Department of Homeland Security Inspector General.
The report states the agency could not provide complete documentation as to why it issued 15 sole source contracts and concluded that TSA is unaware if the agency obtained contracts that provide "the best value for the government."
TSA is allowed to sole source its business to private companies but only when it is determined to be in the best interest of the agency. If so, TSA must document that it is an emergency, that there is a need for standardization or prove that there is only one vendor who can do the work.
Scott Amey, General Counsel for the Project on Government Oversight says no bid contracts raise red flags. "There are always fears it is being awarded based on who you know and that taxpayers may not be getting best product," he said.
The agency claimed that there was only one vendor for many of the contracts such as software for threat assessment and watch list activities for domestic air passengers. The total amount of sole source contracts in 2006 was $782 million which represents, according to the agency, 15% of the total TSA contracts for that year.
TSA officials objected to some of the findings but generally agreed with the Inspector General's recommendations and noted they have already taken steps to address the concerns.
Full Report From The Department of Homeland Security Inspector General
By Laura Strickler