Contracting with the Enemy: DOD Has Limited Assurance that Contractors with Links to Enemy Groups Are Identified and Their Contracts Terminated [open pdf - 531KB]
"To reduce the risk of inadvertently contracting with individuals or entities that provide funds to groups that oppose U.S. and coalition forces, Congress included Section 841 in the fiscal year 2012 National Defense Authorization Act (NDAA). Section 841 permits the Department of Defense (DOD) to authorize a Head of a Contracting Activity (HCA) to restrict, terminate, or void a DOD contract, grant, or cooperative agreement with an entity or individual determined to be actively supporting an insurgency or otherwise opposing U.S. or coalition forces in the Central Command (CENTCOM) theater of operations, including Afghanistan. As of January 18, 2013, CENTCOM had issued four notification letters identifying five companies and their associates as Section 841 designees. This report describes the processes DOD has established to implement Section 841, assesses the extent to which DOD's process for implementing Section 841 has aided in identifying and preventing U.S. contracting funds from being provided to individuals and entities identified as actively supporting an insurgency or opposing U.S. or coalition forces in Afghanistan, and lists some areas of the Section 841 legislation that could be strengthened to prevent contracting with the enemy."
Office of the Special Inspector General for Afghanistan Reconstruction, SIGAR Audit 13-6
Special Inspector General for Afghanistan Reconstruction: http://www.sigar.mil/