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August 04, 2015

U.S. Aid Agency Ordered to Lift Suspension of Embattled Contractor

A federal judge on Monday ordered the U.S. Agency for International Development to reinstate the grant eligibility of International Relief and Development, one of its biggest nonprofit contractors, claiming its January suspension was illegal, The Washington Post reports.

The nonprofit, based in Arlington, Va., was suspended from grant eligibility in January after investigators found "serious misconduct" in the group's handling of hundreds of millions of dollars in federal funds. The nonprofit filed suit in June. USAID said it was lifting the group's suspension, acknowledging a potential conflict of interest because its contract suspension officer also headed its acquisitions office. The agency said would conduct a new review of the nonprofit following a reorganization.

The district judge ordered USAID to fairly consider the nonprofit's proposals for new awards and to notify other government agencies that the group's suspension was illegal.