PVS Update: Vetting System May Include Contractors; House Bill Abandoned
by Suraj Sazawal, 6/1/2009
There has been a flurry of activity on USAID's Partner Vetting System (PVS) in the aftermath of the 90 day delay for implementing the final rule, now scheduled to take effect on Aug. 4, 2009. It would require USAID grant applicants to submit detailed personal information on key individuals to the government to be checked against secret watchlists. In May 2009, a State Department official indicated the rule may be expanded to include contractors, the sponsor of legislation to mandate PVS will not pursue her bill and a GAO report found vetting in current USAID programs in Gaza and the West Bank has improved.
A PVS For Contractors?
Jack Lew, Deputy Secretary of State for Management and Resources, identified a critical problem with PVS when responding to House Appropriations Committee member Mark Steven Kirk's (R-Il) concerns at a May 13, 2009 hearing. When asked by Kirk about implementing PVS to vet nongovernmental organizations (NGOs), Lew responded, "[W]hy did it apply to NGOs exclusively? Why it did not apply to contractors? And frankly, I couldn't be satisfied that there was a good rationale for saying that there was a difference and made a difference."
Lew continued by indicating his department will pursue a broader policy that would apply to NGOs and contactors working in countries such as Pakistan or Afghanistan. He said, "I asked USAID to go back and re-draft a regulation that would be applied across the board. That has been sent to OMB. It is in the rule making process now and it is our intent for it to become final." Kirk expressed his support for the expansion of the initiative.
Even with expanding the vetting procedures to include contractors, Rep. Nita Lowey (D-NY), the Committee's Chairwoman, indicated that no vetting system is perfect. "Given the best requirements…someone could get through a hole."
Lew continued by indicating his department will pursue a broader policy that would apply to NGOs and contactors working in countries such as Pakistan or Afghanistan. He said, "I asked USAID to go back and re-draft a regulation that would be applied across the board. That has been sent to OMB. It is in the rule making process now and it is our intent for it to become final." Kirk expressed his support for the expansion of the initiative.
Even with expanding the vetting procedures to include contractors, Rep. Nita Lowey (D-NY), the Committee's Chairwoman, indicated that no vetting system is perfect. "Given the best requirements…someone could get through a hole."
Any redraft of the final PVS rule should address the serious concerns raised by U.S. NGOs with experience vetting and operating programs overseas. These are described in detail in our Issue Brief: USAID Must Consider Alternative Vetting Approaches article, and include:
- Increased risks to NGO employees and volunteers
- The lack of due process
- Insufficient data security
- Processing delays and an unfair burden on applicants
House Sponsor Will Not Push PVS Bill
On May 20, Rep. Ileana Ros-Lehtinen (R-Fl), the Ranking member on the House Foreign Affairs Committee told the Committee that she would no longer try to attach the PVS bill (H.R. 1062) as an amendment to the State Department's Foreign Relations Reauthorization bill. Her decision not to press for the inclusion of the bill, which is wider in its scope than the proposed USAID PVS, has been applauded by NGOs who consider it to be a step in the wrong direction. The day before Ros-Lehtinen informed the committee, InterAction, a coalition of U.S.-based international relief and development NGOs, submitted a letter to the committee saying, "H.R. 1062 would…cripple the ability of American nongovernmental organizations (NGOs) to effectively deliver humanitarian and developmental assistance overseas and would increase the risk of violence that American humanitarian workers already face."
On May 20, Rep. Ileana Ros-Lehtinen (R-Fl), the Ranking member on the House Foreign Affairs Committee told the Committee that she would no longer try to attach the PVS bill (H.R. 1062) as an amendment to the State Department's Foreign Relations Reauthorization bill. Her decision not to press for the inclusion of the bill, which is wider in its scope than the proposed USAID PVS, has been applauded by NGOs who consider it to be a step in the wrong direction. The day before Ros-Lehtinen informed the committee, InterAction, a coalition of U.S.-based international relief and development NGOs, submitted a letter to the committee saying, "H.R. 1062 would…cripple the ability of American nongovernmental organizations (NGOs) to effectively deliver humanitarian and developmental assistance overseas and would increase the risk of violence that American humanitarian workers already face."
Some Improvement Made, Some Weaknesses Remain
A May 2009 GAO report, Measures to Prevent Inadvertent Payments to Terrorists under Palestinian Aid Programs Have Been Strengthened, but Some Weaknesses Remain, evaluates the vetting procedures for USAID sponsored NGOs working in Gaza and West Bank. Having examined the vetting process for USAID awardees and sub-awardees in the region, the report concludes that "USAID strengthened its antiterrorism policies and procedures and complied with them when making new prime awards, but had weaknesses related to compliance at the sub-award level." The report recommends that mandatory clauses be included in every sub-award contract or agreement and improved monitoring of how United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) conducts its vetting process.
An earlier 2006 GAO report about vetting in the region found that USAID had not regularly collected the required identification information on individuals, properly maintained the database of vetting results, and had not ensured all sub-awardees signed the mandatory certification statements. The 2009 report says USAID has responded to the 2006 report's recommendations and has "strengthened its antiterrorism policies and procedures by clarifying how each would apply to certain types of assistance instruments and by strengthening its vetting process." While USAID has improved some of their vetting procedures, the report did find "limitations in how the agency monitors prime awardee compliance with requirements related to the inclusion of mandatory clauses in sub-awards."
