Audit of USAID’s Process for Suspension and Debarment

The audit aimed to evaluate the effectiveness of USAID's suspension and debarment process in protecting the public interest. The audit found that USAID's suspension and debarment process has not adequately protected the public interest by responding to contractor impropriety in accordance with Federal guidance. Although USAID refrained from engaging in business with parties listed in the Federal database of excluded parties, the agency took only seven debarment actions and two suspension actions during fiscal years 2003-2007, which accounted for only 1.9 percent of USAID's contract and grant awards. The audit identified several areas of consideration that highlight the inadequacies of USAID's suspension and debarment process. Firstly, USAID's decision-making process for suspension and debarment actions contains flaws and constraints that minimize the protection the process should afford to the public interest. The suspension and debarment official and the Excluded Parties List System are burdened with too many responsibilities, which hinders their ability to devote sufficient attention to suspension and debarment matters. Furthermore, USAID did not ensure that its contractors had completed certifications that they were responsible to carry out a Federal contract, nor did the agency document its verification that the contractors were not listed in the Federal database as ineligible to receive a Federal award. In files for 20 of 54 contracts reviewed, USAID omitted documentation that a check had been made prior to awarding the contract to ensure that the contractor was not listed in the Federal database. The audit report contains 12 recommendations to assist USAID in strengthening its suspension and debarment process. These recommendations aim to improve the agency's procedures for providing timely notice of final debarment decisions, entering suspension and debarment information into the Federal database, and documenting the actions taken. Additionally, the recommendations encourage USAID to reconsider its delegation of responsibilities and consider a dedicated division for suspension and debarment. The audit's findings and recommendations highlight the need for USAID to take more suspension and debarment actions as a matter of policy, institute a process to alert responsible staff to provide timely notification to those it debars, and develop a procedure for timely entries into the Federal database. By implementing these recommendations, USAID can improve the effectiveness of its suspension and debarment process and better protect the public interest.