Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Doubling direct foreign aid could bite U.S. vendors

Washington Post with Bloomberg  May 21, 2012

American contractors risk losing business under a U.S. plan to double the share of international aid awards given to overseas entrepreneurs and governments.

The U.S. Agency for International Development awarded $2.12 billion, or 15 percent, of its foreign assistance budget to the overseas groups last fiscal year, compared with $1.94 billion, or 12 percent, in fiscal 2010. The agency has set a goal of spending 30 percent of that aid on such entities by 2015.

The shift may reduce awards to U.S.-based contractors, which received 59 percent of USAID’s $14.5 billion in foreign assistance spending in the fiscal year that ended Sept. 30. The remaining 26 percent went to other institutions, including universities and vocational schools.

Rajiv Shah, the agency’s administrator, says boosting direct investment in developing countries will save money and strengthen foreign institutions. “We became far too reliant on contractors,’’ he said in a March 7 speech.

The agency wants to work with local entrepreneurs and developing countries’ governments “instead of costlier Western consultants and contractors,’’ Shah said.

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May 21, 2012 - Posted by | Civilian Contractors, USAID | , , , ,

1 Comment »

  1. The increase in money spent abroad with foreign companies, who are not ccovered by US Law will lead to further fraud, abuse and misuse of the funds supplied.
    Afghanistan is the perfect exampe, were millions of dollars have been paid by the US Government to foriegn companies only to see workers, sub-contractors and suppliers not paid

    Comment by Andrew | May 21, 2012 | Reply

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