New Rule Prohibits Use of Funds For Certain DoD Construction and Infrastructure Programs and Projects

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Recently, our colleagues Glenn Sweatt and Alex Ginsberg published their Client Alert titled DFARS Clause Blocks Funding for Unsafe Projects in Afghanistan, Recently published regulation implements the FY17 NDAA to prohibit use of funds for DoD construction and infrastructure programs and projects in Afghanistan that cannot be safely accessed by U.S. Government personnel. Takeaways include:

  • New rule prevents Government contracting officers from funding projects that are not able to be safely accessed by Government civilian or military personnel, as these may pose an increased risk of fraud, corruption or waste, or lack efficient oversight.
  • The Government has awarded projects in Afghanistan at locations that Government personnel have not been able to safely travel to and access, leading to inefficient oversight and a profusion of disputes and claims.
  • Waivers will be available at increasing thresholds, but any project over $40M will require waiver by the Secretary of Defense and Congressional notification.