The contracts -- for projects such as airport baggage-screening equipment and trailers for Hurricane Katrina evacuees -- ended up being over budget, delayed or canceled after money was spent, figures and documents prepared by the U.S. House of Representatives Committee on Homeland Security indicated.

A six-member panel of experts was to testify before the House Subcommittee on Management, Investigations and Oversight on how to correct issues with the department's acquisitions process, The Washington Post (NYSE:WPO) reported.

The experts said there were many problems with the agency's contracting and acquisition process, including a lack of personnel to effectively oversee contract work. The department's contract spending was $12.2 billion last year.

In written testimony, a department official said the agency is adding acquisition personnel, enacting better policies and procedures and trying to coordinate how its divisions buy goods and services.

The Homeland Security Department was created five years ago by merging 22 agencies, including the Federal Emergency Management Agency, the Immigration and Naturalization Service, the Coast Guard and the Transportation Security Administration.