The Office of Inspector General has found shortcomings in contract management at U.S. Immigration and Customs Enforcement (ICE). OIG conducted the audit in response to a hotline complaint.
On June 22, 2018, ICE’s Enforcement and Removal Operations (ERO) re-awarded a contract to Capgemini Government Solutions, LLC (contractor) for $230,000, with a potential ceiling of nearly $50.8 million and 5-year period of performance beginning July 1, 2018. ERO obligated nearly $24.9 million between June 22, 2018, and March 11, 2021, for planning and detention management support services. The contract supports the use of best practices, forecast planning, and operational processes that optimize capacity utilization.
OIG found that although ICE had controls in place that required the contractor to provide qualified labor, ICE did not properly construct or monitor the contract. According to the watchdog, this occurred because ICE awarded a firm-fixed-price contract but required a labor-hour performance measurement to monitor and track work hours, which was not appropriate for this type of contract. OIG added that the contractor also did not provide the number of staff ICE required for specific labor categories.
“As a result,” OIG reports, “ICE cannot ensure it received all services, and it may have overpaid $769,869 in labor costs.”
In addition, the audit found that ICE did not ensure the contractor met statement of work requirements for staff skill sets, education, and work experience, nor did it ensure all contractor staff worked at the designated place of performance.
In August 2020, ICE began reviewing the résumés of all contractor staff to ensure that when staff were replaced, they met the minimum requirements for specified labor categories. Also, ICE required Project Status Reports from the contractor beginning May 2021.
OIG made three recommendations as a result of its audit:
- The ICE Head of Contracting Activity should oversee the development and/or implementation of internal controls to ensure ICE procurement and program personnel properly construct and monitor the terms of the contract. Specifically, the requirements in the statement of work should align with the type of contract awarded.
- The ICE Head of Contracting Activity should direct contracting officer representatives to perform oversight of the Capgemini Government Solutions, LLC contract, to include its subcontractor, and ensure compliance with statement of work contract terms.
- The ICE Head of Contracting Activity should direct procurement and program staff to review the qualifications for skill sets, education, and work experience of all Capgemini Government Solutions, LLC employees currently working on the contract and remove unqualified staff; and ensure the contracting officer representative reviews all invoices paid to Capgemini Government Solutions, LLC between August 2018 and December 2019. The review should highlight any cost for labor not provided and determine any amounts to recover.
ICE concurred and said it would meet the first recommendation by March 31, 2022. In response to the second recommendation, ICE said it has already completed several actions since OIG’s audit and the watchdog is awaiting documentation in order to close the recommendation. In line with the third recommendation, ICE will review the qualifications for skill sets, education, and work experience of all Capgemini employees currently working on the contract and remove any unqualified staff. All contract invoices paid between August 2018 and December 2019 will also be reviewed and ICE will identify any cost for labor not provided and determine any amounts to recover. It expects to complete this work by the end of November, 2021.