The Transportation Security Administration (TSA) awarded a human capital services contract valued at $1.2 billion. We conducted this audit to determine the extent to which TSA is effectively monitoring and enforcing the terms and conditions of the contract. Although TSA ensures the contractor meets the terms and conditions of the human capital services contract, its oversight could be more effective. Specifically, TSA has limited options for holding the contractor accountable for performance deficiencies. There were instances in which TSA did not hold the contractor monetarily accountable for personally identifiable information violations. TSA also did not hold the contractor monetarily liable for noncompliance with statement of work requirements relating to veterans’ preference.