Contracting with the Enemy: State and USAID Need Stronger Authority to Terminate Contracts When Enemy Affiliations are Identified

Abstract

In April 2013, SIGAR reported on the process the Department of Defense (DOD) established to comply with Section 841 - Prohibition on Contracting with the Enemy in the United States Central Command Theater of Operations - of the Fiscal Year 2012 National Defense Authorization Act and ways to strengthen the legislation. The report noted that Section 841 does not provide the Department of State (State) or the U.S. Agency for International Development (USAID) the legal authority to restrict, terminate, or void contracts with persons or entities opposing the United States or coalition forces - also known as Section 841 designees. However, State and USAID use many of the same companies as DOD and have numerous contracts in Afghanistan. In addition, State and USAID will have an enduring presence in the country after the withdrawal of a significant number of U.S. military personnel in December 2014. This report (1) describes the processes State and USAID have established to prevent contracting with persons or entities that actively support insurgencies or oppose U.S. or coalition forces in Afghanistan, and (2) discusses the potential impact of State and USAID not having Section 841 contracting authority. MATTER FOR CONGRESSIONAL CONSIDERATION Congress may wish to consider expanding Section 841 authority to State and USAID to allow senior procurement executives to void, terminate for default, or restrict future awards to persons or entities identified as enemies of the United States. State and USAID commented that they would welcome this authority, but both agencies expressed concern with proposals that would indiscriminately expand DOD-specific contracting provisions to them.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jul 01, 2013
Accession Number
AD1140389

Entities

People

  • John Sopko

Organizations

  • Special Inspector General for Afghanistan Reconstruction

Tags

Communities of Interest

  • Human Systems
  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Acquisition
  • Contractors
  • Contracts
  • Department Of Defense
  • Department Of State
  • Employment
  • Governments
  • Joint Military Activities
  • Law
  • Military Personnel
  • National Security
  • Personnel Management
  • Procurement
  • Risk Analysis
  • Security
  • United States
  • United States Central Command

Readers

  • Government Contracting/Procurement.
  • Government and Public Administration Law.
  • Military and Counterinsurgency Studies.