to the aforementioned oversight and vetting improvements.
NAT keeps Soldiers and Army trucks off the roads and frees Coalition Forces to combat the Taliban directly, reducing overall troop requirements.
This new transportation contract was awarded by C3 last month and includes stricter oversight and performance con- trols than the previous Host Nation Trucking (HNT) contract. Chairman Chaffetz, Congressman Tierney, we paid serious attention to Congressional recom- mendations made last year, including the findings and recommendations from this Committee in your Warlord, Inc. report [Warlord, Inc.; Extortion and Corruption Along the U.S. Supply Chain in Afghani- stan]. NAT ensures greater transparency into subcontractors and includes a code of ethics, significantly expands the number of prime contractors, ensures prior vet- ting, and establishes a tiered rate structure based on security requirements and sepa- rates contracts into suites to encourage smaller and local companies to participate.
The HNT contract ends today [Sept. 15]. Execution of the NAT contract begins tomorrow, Sept. 16. The increase in the number of available contractors from 8 to 20 enables greater competition, leading to more work for companies that perform responsibly and the flexibility to suspend problem contractors while meeting total mission needs. The additional prime contracts also facilitate the development of the trucking industry in Afghanistan. The new NAT contract also provides sep- arate pricing for transport services based on whether private security contractors [PSC] or Afghan Public Protection Forces are required, or if no security is required.
NAT addresses Congressional recommen- dations on the role of Afghan National
IMPROVING CONTRACTOR PERFORMANCE
The new DASA(P), Kim D. Denver, outlined what his office is doing to combat contracting corruption in Afghanistan during recent test- imony before a U.S. House of Representatives subcommittee. (Photo courtesy of DASA(P).)
Security Forces in highway security, inventories actual trucking assets available to DOD by creating “suites” of contract requirements, ensures transparency and vetting of all contractors and subcontrac- tors, provides oversight of all contracts to ensure transparency and performance, and addresses PSC past performance. As a result, NAT reduces costs, pays only for services performed, incentivizes early completion, improves oversight and performance, and further supports our warfighters in the field.
CONCLUSION The endemic corruption in Afghanistan remains a challenge to our contract- ing personnel. The anti-corruption task forces now operating in Afghanistan have had a positive impact on the ability of contracting offices to operate effectively. The Army appreciates the impact that these task forces have had in improving the contracting environment. Task Force 2010, the FBI’s International Contract Corruption Task Force, the Army Crimi- nal Investigation Division’s Afghanistan
Fraud Detachment Major Procurement Fraud Unit, the Department of Justice’s Major Crimes Task Force, the Afghan Threat Finance Cell, and Task Force Spotlight have all played a role in help- ing to reduce corruption of government contracting in Afghanistan. However, combating contracting corruption is a continual process. It will take time to change the environment, while simultane- ously providing pre-deployment training of Army personnel to ensure that they understand how to deal with the cultural differences in Afghanistan to improve or correct questionable practices.
Army contracting continues to identify more effective ways to ensure that we get the most value for our contracting dol- lars and the most effective support for our warfighters. I cannot stress enough the complexity of managing count- less requirements, overseeing tens of thousands of contractors, and awarding billions of dollars in procurements in an environment that is hostile and corrupt on many levels. Not only is physical secu- rity still tenuous, but the business and financial environment, educational level, technology, and infrastructure—though improving—form a gauntlet of obstacles making contract oversight more difficult.
Our dedicated contracting workforce, both military and civilian, will continue to carefully assess lessons learned in these challenging missions while we make improvements, adjustments, and seek innovative solutions to enhance mission success. The U.S. Army remains com- mitted to the protection of the interests of the United States, our warfighters, and our taxpayers through excellence in all contracting activities.
AS
C.ARMY.MI L
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CONTRACTING
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