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Pursuant to a congressional request, GAO examined the Agency for International Development's (AID) use of personal services contractors in carrying out its programs overseas, focusing on whether: (1) services and functions performed under personal services contracts (PSC) are appropriate; (2) AID discloses its use of PSC in budgetary and services reporting; and (3) AID ensures that personal services contractors do not have conflicts of interest.

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Recommendations for Executive Action

Agency Affected Recommendation Status
United States Agency for International Development 1. To help ensure that personal services contractors do not perform prohibited activities and are subject to adequate supervision and control of their employees, the Administrator, AID, should provide guidance on the requirements for supervising personal services contractors.
Closed - Implemented
On October 27, 1992, the Associate Administrator for Finance and Administration (AA/FA) issued a general notice to contracting officers and project officers that addresses the supervision requirements for U.S. personal services contractors.
United States Agency for International Development 2. The Administrator, AID, should separately disclose in AID budget presentations to Congress its use of personal services contractors in support of overseas mission management and program activities.
Closed - Implemented
AID obtained data from field offices on the number and cost of using personal services contractors and planned to disclose this information in its fiscal year 1994 congressional presentation. However, issuance of the budget document has been delayed because of a change in administration and uncertainty regarding funding.
United States Agency for International Development 3. The Administrator, AID, should clarify in what circumstances personal services contractors should be considered consultants.
Closed - Implemented
AID has issued Contract Information Bulletin (CIB) 92-6, dated March 18, 1992, and a supplement, dated April 22, 1992, which address the GAO recommendation.
United States Agency for International Development 4. The Administrator, AID, should require contracting officers to enforce agency regulations designed to ensure that: (1) apparent conflicts of interest involving personal services contractors, including any conflicts on active contracts, are identified and resolved; and (2) financial and post-employment disclosures are made.
Closed - Implemented
Amended procurement regulations are being drafted that include provisions that seek to ensure that contracting officers meet agency requirements for identifying and resolving contractor conflicts of interest, and ensure that personal services contractors make financial and post-employment disclosures.

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