Audit of USAID/Iraq’s Oversight of Private Security Contractors in Iraq

The mission does not maintain direct contracts with these contractors but instead subcontracts with implementing partners who have primary responsibility for oversight. At the time of the audit, USAID/Iraq maintained a portfolio of 12 contracts and grant agreements with private security subcontractors, totaling approximately $375.1 million in cumulative obligations and $278.9 million in expenditures. The audit found that USAID's implementing partners were not adequately overseeing the private security contractors' reporting of serious incidents. The partners relied on the contractors to report incidents, which often resulted in incomplete or inaccurate reporting. The audit team recommended that USAID/Iraq require its implementing partners to establish procedures for monitoring the reporting of serious incidents and to report incidents directly to the mission directly. The USAID/Iraq Mission took prompt action in response to a governmentwide procurement ruling, ensuring that all prime contracts involving private security contractors included guidelines for armed contractors, including standards on the use of deadly force, training, and hiring. The mission also established procedures for monitoring the reporting of serious incidents and required implementing partners to report incidents directly to the mission directly. The audit found that USAID's implementing partners had limited management responsibility for ensuring the oversight of private security contractors. The mission still maintained some degree of oversight, but additional oversight was needed to ensure that serious incidents were reported properly and in a timely manner. The audit team recommended that USAID/Iraq require its implementing partners to establish procedures for monitoring the reporting of serious incidents and to report incidents directly to the mission directly. The USAID/Iraq Mission has a responsibility to ensure that its implementing partners provide adequate oversight of private security contractors. The mission has taken steps to address the audit's findings, including requiring implementing partners to establish procedures for monitoring the reporting of serious incidents and to report incidents directly to the mission directly. The mission's efforts to improve oversight and accountability of private security contractors are essential to ensuring the safety and security of its employees and contractors in Iraq.