IGs Fault Sole-Source Awards at TSA, EPA Inspectors general at EPA and the Transportation Security Administration have called for improved controls on those agencies’ use of sole-source contracts. The Homeland Security Department IG found 15 out of 16 sole-source contracts awarded by TSA in 2006 lacked the required justification. Fourteen of them included no evidence that a market analysis was performed to determine whether more than one source was available. Eleven contract files did not contain higher-level approvals for the sole-source decision, as required by regulation. Because of the violations, the auditors said, “TSA does not know whether its [sole-source awards] are in the best interest of or provide the best value for the government.” At the time TSA operated under its own procurement rules, outside the Federal Acquisition Regulation. Congress has since required the agency to follow the FAR, starting this year. The IG recommended that TSA strengthen internal controls to ensure the rules were followed. TSA management agreed with that and other recommendations. EPA Audit EPA’s inspector general also singled out inadequate controls in its examination of a sample of 20 sole-source contracts from 2005 to 2007. Auditors said some of them were not approved by the proper official. On two of the contracts, contracting officers did not perform market research to see whether more than one source was available. In several cases, proper synopses were not published to give other bidders a chance to oppose the sole-source award. The auditors concluded, “EPA did not always follow FAR requirements because it either did not have effective internal controls, or because it did not follow existing controls.” The IG said EPA management adopted recommendations aimed at improving internal controls.