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As many as 30,000 citizenship applications may have been processed without the proper files, auditors conclude.
Decision to cut program will affect about 700 police and investigators at the Federal Protective Service.
Officials say new name for JWOD Program is unrelated to a recent fraud incident.
The intelligence and law enforcement communities need access to information, but ethics concerns must be addressed.
Agency instead will conduct public-private competition to select a new provider.
Spending caps will apply budget pressure that could lead to furloughs.
Agency will study alternatives to competition that could have encompassed more than 2,000 jobs.
Independent study urges Federal Protective Service, which secures government facilities, to improve process it uses to bill agencies for services.
Small business certification rules still listed as troubled area.