Takeaways

The Agency for International Development Acquisition Regulation (AIDAR) will be revised to incorporate new requirements for Protection from Sexual Exploitation and Abuse (PSEA).
New protections are intentionally broad and inclusive to protect children from exploitation and abuse occurring in the physical world, digital technology, and mediums yet unknown where the harmful behaviors occur or are facilitated.
The proposed AIDAR clause implementing the new protections will require USAID contractors to develop standards, policies, or procedures designed to protect children from sexual exploitation, as well as compliance plans similar to those required by FAR 52.222-50, Combating Trafficking in Persons.

On February 28, 2024, the U.S. Agency for International Development (USAID) published a proposed rule to strengthen and consolidate USAID-specific requirements to prevent exploitation and abuse of children. If adopted, the proposed rule will add subpart 722.70, Safeguarding Against Exploitation, Sexual Abuse, Child Abuse, and Child Neglect, to the Agency for International Development Acquisition Regulation (AIDAR). It will also add a new AIDAR clause in Part 752 to enforce the requirements of subpart 722.70, to be included in USAID contracts and subcontracts.

Compliance with the new AIDAR clause, tentatively numbered 752.222-7X, will require USAID contractors to:

(1) Develop and implement publicly available standards, policies or procedures that prohibit employees, agents, interns or any other person provided access or contact with beneficiaries of foreign assistance, from engaging in any exploitation, sexual abuse, child abuse, or child neglect of any person during the period of performance, supporting or advancing these actions, or intentionally ignoring or failing to act upon allegations of these actions;

(2) For awards exceeding $550,000, develop, implement, and maintain a compliance plan that details risk analysis and mitigation measures that will be implemented during the period of performance of the contract to prevent and address exploitation, sexual abuse, child abuse, and child neglect of any person; and

(3) Report credible information that alleges employees, agents, interns, or any other person provided access or contact with beneficiaries, engaged in any exploitation, sexual abuse, child abuse, or child neglect of any person during the period of performance, supported or advanced these actions, or intentionally ignored or failed to act upon allegations of these actions; and additional information on any actions planned or taken in response to the allegation; and any actions planned or taken to assess, address, or mitigate factors that contributed to the incident.

Contractors will be able to develop the compliance plans, if required, in conjunction with or separate from the similar compliance plan required by FAR 52.222-50, Combating Trafficking in Persons.

In practice, compliance with this clause may prove particularly challenging. For instance, compliance plans must include “[r]easonable measures to reduce the risk of exploitation, sexual abuse, child abuse, and child neglect.” This laudable goal may be difficult to implement as contractors determine how to address issues such as child neglect in the varying communities where USAID contractors operate. Discerning how to institute “measures to prevent and address violations that occur in or are facilitated by […] as yet unknown methods or mediums” may also be challenging.

If the proposed rule is implemented, the clause will be inserted in all USAID contracts except for contracts for personal services with individuals and certain contracts for acquisition of commercial products or commercial services as defined in FAR 2.101, unless these contracts are anticipated to provide supplies or services directly to the beneficiaries of foreign assistance in foreign countries (e.g., technical assistance and training contracts), or require routine access to USAID space or information systems. The clause will also be required to be flowed down in all subcontracts, except subcontracts for commercial products or services, unless the subcontractors are to provide supplies or services directly to beneficiaries of foreign assistance in foreign countries.

While USAID has not indicated when these new requirements and contract clause will go into effect, USAID contractors should plan to implement the new policies and compliance plan required by the proposed clause shortly after the proposed rule is finalized.

Interested parties may submit comments on this proposed rule by April 29, 2024.

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