**GAO-08-1088**                      Published: Sep 23, 2008. Publicly Released: Sep 23, 2008.                  

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## Highlights

When the Department of Homeland Security (DHS) was created in 2002, it was granted "other transaction" authority--a special authority used to meet mission needs. While the authority provides greater flexibility to attract and work with nontraditional contractors to research, develop, and test innovative technologies, other transactions carry the risk of reduced accountability and transparency--in part because they are exempt from certain federal acquisition regulations and cost accounting standards. In 2004, GAO reported on DHS's early use of this authority. This follow-up report determines the extent to which nontraditional contractors have been involved in DHS's other transactions, and assesses DHS's management of the acquisition process when using this authority to identify additional safeguards. To conduct its work, GAO reviewed relevant statutes, guidance, and prior GAO reports on other transactions, and interviewed contracting and program management officials, as well as contractors. GAO also reviewed 53 files for agreements entered into from fiscal years 2004 through 2008 and identified those involving nontraditional contractors.

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## Topics

Homeland Security

AccountabilityAgency missionsContract authorityContractorsFederal procurementFederal procurement policyHomeland securityIrregular procurementIT acquisitionsMission critical systemsPrime contractorsProcurement planningProcurement policyProcurement regulationsProgram managementResearch and developmentResearch and development contractsResearch programsRisk assessmentRisk managementSmall business contractorsOther transactionsPolicies and proceduresTransparency