USAID/Iraq's contracting officer direct prime
contractors in writing to perform an accounting system and internal control review of Sallyport Global Services, which includes verification that Sallyport Global Services accounts for all costs by contract, and that appropriate internal controls, such as segregation of duties and general ledger reconciliation, are in place and functioning as intended.
USAID/Iraq's contracting officer suspend all
future security and life support payments for all prime contractors with Sallyport Global Services subcontracts until Sallyport Global Services implements an adequate cost accounting system.
USAID/Iraq's contracting officer make a written determination about terminating all security and life support subcontracts with Sallyport Global Services and work with USAID's Compliance and Oversight of Partner Performance division to start suspension and/or debarment procedures on Sallyport Global Services.
USAID/Iraq's contracting officer determine the allowability of all security and life support costs incurred by Sallyport Global Services since 2007 and billed to prime contractors, and issue a bill of collection as appropriate.
USAID/Iraq make a written determination about establishing a direct contracting relationship with Sallyport Global Services, or another security and life support provider, to better monitor costs incurred. If USAID/Iraq decides against the direct contracting relationship, USAID/Iraq should develop a written plan to verify that contractors are monitoring costs appropriately and proper surveillance is performed.
USAID/Iraq issue a mission notice with new serious incident reporting procedures and modify all awards with the updated language.