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DHS reviewing all service contracts

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DHS is still conducting a top-to-bottom assessment of all its full-time employees, part-time employees, and contractors to improve management of the workforce. Included in this assessment is a review of all DHS service contracts valued over $1 million, including extensions of existing contracts. The broad and laborious process is part of a larger “efficiency review initiative” to streamline the disparate agency made up of 23 tangentially-related sub-agencies.

The aim of the contract reviews, DHS officials said in a statement, is to ensure that contracts aren’t being awarded for inherently governmental functions, and “to add a new level of rigor to the DHS contracting process.” Many in the federal contracting industry, however, sense that the review is part of a recent governmentwide effort to “insource” many functions that are currently executed by contract personnel. They fear the review is meant to add more negative reports on contractors to pave the way for converting private jobs to federal performance.As the review process moves forward, expect contractors to contest and defend many areas where they have created niches for their services, and for auditors and lawmakers to watch carefully where DHS draws the line on “inherently governmental” work—as it may signal how other agencies approach their service contracts.