Bill would defer award fees from DHS

The chairman of the House Homeland Security Committee wants Homeland Security Department officials to make sure contractors do their job before the government pays them bonuses.

Rep. Bennie Thompson (D-Miss.) recently introduced a bill (H.R. 6244) that would require DHS to pay a bonus under a cost-plus-award-fee contract only when the company actually meets the specified outcomes in the contract.


The cost-plus contracts are intended to reward contractors for above-average performances in their work. Award fees are based on the government’s judgment of the contractor’s overall performance.


“Ongoing oversight and review of these programs must continue,” Thompson said June 11.

Cost-plus contracts remain controversial with Congress and oversight officials. For example, the Coast Guard’s Deepwater program has faced numerous problems in recent years with management and contractor oversight, including awarding bonuses.


However, the Coast Guard intends to use other contracting methods and back away from the award-fee structure, the Government Accountability Office found in 2007. Meanwhile, GAO also said the Coast Guard has bolstered the criteria for awarding bonuses on the Deepwater program. The Coast Guard now has 24 milestones by which to measure the contractor’s performance, it said.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Featured

  • Telecommunications
    Stock photo ID: 658810513 By asharkyu

    GSA extends EIS deadline to 2023

    Agencies are getting up to three more years on existing telecom contracts before having to shift to the $50 billion Enterprise Infrastructure Solutions vehicle.

  • Workforce
    Shutterstock image ID: 569172169 By Zenzen

    OMB looks to retrain feds to fill cyber needs

    The federal government is taking steps to fill high-demand, skills-gap positions in tech by retraining employees already working within agencies without a cyber or IT background.

  • Acquisition
    GSA Headquarters (Photo by Rena Schild/Shutterstock)

    GSA to consolidate multiple award schedules

    The General Services Administration plans to consolidate dozens of its buying schedules across product areas including IT and services to reduce duplication.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.