The Government Accountability Office (GAO) has released a critical report today urging federal agencies to adopt a systematic approach to manage human trafficking risks within their contracts. This comes in light of increasing requirements set by Congress since 2000 to prevent trafficking in federal contracting, amidst ongoing allegations of trafficking violations.
Findings of the GAO Report
The GAO reviewed the efforts of four federal agencies—Department of Homeland Security (DHS), Department of Defense (DOD), Department of State, and U.S. Agency for International Development (USAID)—in identifying and managing trafficking risks in their contract spending. The report found that while DHS, DOD, and State had taken initial steps to identify these risks following a 2019 memorandum from the Office of Management and Budget (OMB), USAID did not conduct the recommended analysis. None of these agencies, however, had implemented a systematic approach to managing these risks.
A systematic approach, as recommended by the GAO, involves identifying, analyzing, developing responses to, and communicating trafficking risks to contracting officials. Such an approach is essential for supporting the U.S. policy of zero tolerance for human trafficking and ensuring that all contracting officials and contractors fulfill their responsibilities.
Inconsistent Compliance with Anti-Trafficking Requirements
The report also highlighted inconsistencies in compliance with federal anti-trafficking requirements across the reviewed contracts. Despite training and guidance provided to contracting officials, nine out of twelve contracts did not meet one or more anti-trafficking requirements, such as obtaining the necessary anti-trafficking certification from contractors. Additionally, while certain contractors are required to develop an anti-trafficking compliance plan, contracting officials are not mandated to request these plans. The GAO found that four out of six compliance plans reviewed did not meet all federal requirements.
Mona Sehgal, a senior GAO official, emphasized the importance of this oversight, stating, “Last year the federal government committed over $750 billion in contracts. Human trafficking is believed to be more prevalent than previously anticipated. Despite laws and regulations to prevent human trafficking on federal contracts, we found that several federal agencies have not systematically assessed their trafficking risks and developed responses to address these risks. As a result, contracting officials from these agencies may not be able to prioritize oversight to ensure that the contractors are taking required steps to prevent trafficking by their employees and subcontractors.”
Lack of Referrals and Actions Against Violations
The GAO report further noted that the suspension and debarment offices at the four reviewed agencies reported receiving no referrals of Inspector General-investigated trafficking allegations against recipients of contracts, grants, and cooperative agreements for fiscal years 2022 and 2023. While the DOD Inspector General conducted investigations into trafficking allegations, there were no referrals reported.
Contractors did report taking actions against subcontractors who violated their anti-trafficking policies, but this was not consistent across all reviewed contracts.
Recommendations and the Need for Vigilance
The GAO made nine recommendations to the reviewed agencies, including adopting a systematic approach to managing trafficking risks in government procurements and reviewing contracting officials’ compliance with federal anti-trafficking requirements. These recommendations aim to enhance the oversight and accountability of federal contracts, ensuring that the U.S. government’s zero-tolerance policy for human trafficking is upheld.
Latesha Love-Grayer, another GAO official, underscored the importance of vigilance, particularly on World Day Against Trafficking in Persons: “It is vitally important for federal agencies to be vigilant about upholding the U.S. government’s zero tolerance policy for human trafficking, especially in contracts paid for by our own taxpayer dollars. Today, on World Day Against Trafficking in Persons, we release another important evaluation of federal agencies’ actions to do so and make recommendations to help strengthen these efforts. On behalf of Congress, we will continue to evaluate and follow-up on efforts to combat human trafficking in federal contracts, in order to support the protection of all people.”
The GAO’s detailed analysis provides crucial insights into the current state of anti-trafficking efforts within federal contracting and underscores the urgent need for systematic risk management to combat this pervasive issue.