Lawmaker questions use of supplemental to fund recurring expenses of Iraq war.
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Draft statement of work calls for contractor employees to be deployed at regional offices around the country.
Lawmakers give government an overall grade of D+, up from a D in 2003, but several agencies make significant gains.
Lawmakers question when agencies can begin auditing their internal controls.
Michael Chertoff says he wants to hear from them about how to make the department better.
"We are headed toward very troubled waters if we stay on this course," says David Walker. "We're on an unsustainable path."
Technology company previously held contract.