Department of Defense Combating Trafficking in Persons Contracting

Department of Defense Combating Trafficking in Persons Contracting and Acquisition Professionals Training Presentation 2016

Introduction By the end of this presentation, you will be able to: • Define human trafficking • Describe laws and regulations related to human trafficking in government contracts • Specify the responsibilities of Defense acquisition professionals in preventing human trafficking • Recognize contract administration indicators of human trafficking • Specify the responsibilities of Defense acquisition professionals in responding to human trafficking violations 2

Introduction This presentation will use the term “Defense acquisition professionals” to represent all Department of Defense employees who are responsible for monitoring contracts (e. g. , Contracting Officer Representatives) and includes, but is not limited to, those employees who align to the following fifteen functional areas: 1. Auditing 2. Business – Cost Estimating 3. Business – Financial Management 4. Contracting 5. Facilities Engineering 6. Industrial and/or Contract Property Management 7. Information Technology 8. Life Cycle Logistics 9. Program Management 10. Program Management – International Acquisition 11. Production, Quality, & Manufacturing 12. Purchasing 13. Science & Technology Manager 14. Engineering 15. Test & Evaluation 3

What is TIP? • Human trafficking is modern day slavery. It involves the exploitation of men, women, and children for sex and for labor. Human trafficking is a crime in the United States and in many other countries. The Department of Defense also prohibits human trafficking. • When Service members, civilians, and contractors engage in these activities they hurt the victims they exploit and affect the Department of Defense’s ability to complete its mission 4 Severe forms of trafficking in persons as defined in Section 103 of the TVPA 2000 (22 U. S. C. 7102(9)). Act of Recruiting Harboring Transporting Providing Obtaining • • By Means of For the Purpose of • • • a person for labor, services, or commercial sex acts Force Fraud Coercion Commercial sexual exploitation Involuntary servitude Peonage Debt bondage Slavery

Types of TIP 5 Sex Trafficking Labor Trafficking Commercial Sexual Exploitation • Occurs predominantly with women and girls, involves commercial sex acts induced by force, fraud, or coercion, or in which the person induced to perform such an act has not reached the age of 18 Child Sex Trafficking • Occurs when a child (under 18 years of age) is induced to perform a commercial sex act regardless of whether force, fraud, or coercion are present. Debt Bondage (Peonage) • Involves victims who are required to work for low wages to repay an excessive or unreasonable amount of money in exchange for a service, such as transportation, or a recruitment fee for a job. Involuntary Servitude • Involves victims who are held against their will and are forced to work under the threat of violence to themselves or their families.

Where Does it Occur? 6 Sex Trafficking Labor Trafficking Most commonly associated with: • Bars • Brothels • Dance clubs • Strip clubs • Massage parlors • Spas • Escort services • Private parties • Private homes Most commonly occurs in contracts that are labor intensive. Labor intensive industries include: • Food services • Domestic services • Janitorial services • Driving services • Construction • Hospitality industries * Human trafficking occurs in the Department of Defense domestically and internationally; both on and around military installations. It can also occur at any location where contractor employees work or live.

Victims are vulnerable to trafficking because of: • Demand for cheap labor • Poverty or economic hardship • Immigration status • Political instability or armed conflict • Natural disasters • Age 7

Human Trafficking vs. Human Smuggling Human smuggling is the facilitation, transportation, attempted transportation, or illegal entry of a person(s) across an international border, in violation of one or more countries’ laws, either clandestinely or through deception, such as the use of fraudulent documents. Human Trafficking 8 Human Smuggling Must contain an element of force, fraud, or coercion (actual, perceived, or implied), unless victim under 18 years of age is involved in commercial sex. The person being smuggled is generally cooperating. Persons who are trafficked are victims. Persons who are smuggled are complicit in the smuggling crime and are not necessarily victims of the crime. Does not need to involve the actual movement of the victim. There is no requirement to cross an international border. Does facilitate the illegal entry of person(s) from on country into another. Smuggling always crosses an international border. Persons are subjected to restrictions, or had documents confiscated. Persons are free to leave, change jobs, etc. Persons must be involved in labor/services or commercial sex acts, i. e. , must be “working. ” Persons must only be in country or attempting entry illegally.

Laws & Policies As the largest single purchaser of goods and services in the world, the United States government bears a responsibility to ensure that taxpayer dollars do not contribute to trafficking in persons. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 9 The Trafficking Victims Protection Act (TVPA) of 2000, 22 U. S. C. Chapter 78 The Trafficking Victims Protection Reauthorization Act (TVPRA) of 2003, 2005, 2008, and 2013 The Uniform Code of Military Justice (UCMJ), 10 U. S. C. Chapter 47 National Security Presidential Directive 22 (NSPD-22) Justice for Victims of Trafficking Act (JVTA) of 2015 The Military Extraterritorial Jurisdiction Act (MEJA), 18 U. S. C. Sections 3261 -3267 Department of Defense Instruction (Do. DI) 2200. 01 2012 Executive Order 13627 Strengthening Protections Against Trafficking in Persons in Federal Contracts National Defense Authorization Act (NDAA) for FY 2013, Title XVll Joint Publication 4 -10, Operational Contract Support Geographic Combatant Command CTIP Special Contract Requirements Federal Acquisition Regulation (FAR) Subpart 22. 17 Defense Federal Acquisition Regulation Supplement (DFARS) Subpart 222. 17

Trafficking Victims Protection Act (TVPA) • • • 10 Enacted in 2000 Defined the Federal government’s response to trafficking in persons Emphasized the need to maintain three pillars: 1. Prevention 2. Protection 3. Prosecution A fourth “P”- Partnership - was later added, but not codified Since original enactment, the TVPA has been reauthorized four times (2003; 2005; 2008; 2013)

National Security Presidential Directive 22 (NSPD-22), “Combating Trafficking in Persons” • Enacted in 2002; U. S. adopted a zero-tolerance policy with the signing of NSPD-22 • In 2012, President Obama signed Executive Order 13627—Strengthening Protections Against Trafficking in Persons in Federal Contracts—to enhance existing zero-tolerance policy – Enhancements will be included as compliance measures in the revised FAR Subpart 22. 17 and DFARS 222. 17. 11

National Defense Authorization Act (NDAA) FY 2013, Title XVll, “Ending Trafficking in Government Contracting” • • • Provides contracting requirements for grantees and subgrantees, contractors, and subcontractors Requires reviews, monitoring, investigations and reporting where there is credible information of a trafficking violation describes remedies for contract violations Outlines notification and cooperation requirements to Inspector Generals and with federal authorities Expands penalties for fraud in foreign labor contracting. It also allows for contract termination for acts that directly support or advance trafficking in persons, including: a) b) c) d) e) 12 Destroying or confiscating an employee’s identity or immigration documents, Failing to provide return transportation for an employee upon the end of employment, Offering employment using false or fraudulent pretenses, Charging unreasonable placement or recruitment fees, and Providing or arranging housing that fails to meet the host country housing and safety standards.

Federal Acquisition Regulation (FAR) Subpart 22. 17 Government contracts shall: a) Prohibit contractors, subcontractors, and their employees from 1) 2) 3) 4) 5) 6) 7) 8) 9) 13 Engaging in severe forms of trafficking in persons during the period of performance of the contract* Procuring commercial sex acts during the period of performance of the contract Using forced labor during the period of performance of the contract Destroying, concealing, confiscating, or otherwise denying access by an employee to the employee’s identity or immigration documents (i)Using misleading or fraudulent practices during the recruitment of employees or offering of employment (ii) Using recruiters that do not comply with local labor laws of the country in which the recruiting takes place Charging employees recruitment fees Failing to provide return transportation or pay for the cost of return transportation upon the end of employment without obstructing victim services, legal redress, or witness activity (there are some limited exceptions to this prohibition) Providing or arranging housing that fails to meet the host country housing and safety standards Failing to provide an employment contract, recruitment agreement, or similar work document in writing in the employee’s native language and prior to the employee prior departure from his or her country of origin

Federal Acquisition Regulation (FAR) Subpart 22. 17 Government contracts shall: b) Require contractors and subcontractors to notify employees of the prohibited activities described in paragraph (a) of this section and the actions that may be taken against them for violations c) Require before contract award a certification and a compliance plan (described in FAR certification 52. 222 -56), appropriate to the size, complexity, nature, and scope of the contract, when supplies are acquired or services performed outside the United States, and the estimated value exceeds $500, 000. The certification must be renewed annually when a compliance plan was required at award, and the contractor must obtain certification from each subcontractor. The certification must certify that: 1) The contractor has implemented a compliance plan with procedures to prevent prohibited 14 activities and to monitor, detect, and terminate the contract with a subcontractor or agent engaging in such activities, and 2) After conducting due diligence, to the best of the contractor’s knowledge, neither it nor any of its agents, subcontractors, or their agents engaged in any such activities. If abuses related to prohibited activities have been found, the contractor or subcontractor has taken appropriate remedial and referral actions

Federal Acquisition Regulation (FAR) Subpart 22. 17 Government contracts shall: d) Require contractors and subcontractors to 1) Disclose violations to the contracting officer and agency Inspector General 2) Provide timely and complete responses to Government auditors’ and investigators’ requests for documents 3) Cooperate fully in providing access to their facilities and staff for investigations and audits 4) Protect all employees suspected of being victims or witnesses of prohibited activities, and not prevent or hinder them from cooperating fully with Government authorities e) Impose suitable remedies, including termination, on contractors that fail to comply with the requirements of paragraphs (a) through (d) (FAR 22. 1703) 15

FAR Clause 52. 222 -50 Contractors are required to notify employees of: a) Notify employees and agents of i. The zero tolerance policy ii. Consequences of policy violations b) Take appropriate action against employees of subcontractors that violate the policy c) Maintain a compliance plan that includes an awareness program, making available to all workers a reporting option including the hotline number and email address of the Global Human Trafficking Hotline, a recruitment and wage plan, a housing plan, and procedures to prevent subcontractors and agents from participating in prohibited activities d) Post the compliance plan at the worksite or on its Web site 16

FAR Certification 52. 222 -56 Prior to the award of any contract that: a) Is for supplies, other than commercially available off-the-street items, to be acquired outside the United States, or services to be performed outside the United States. b) Has an estimated value that exceeds $500, 000. The apparent successful offeror is required to submit a certification stating that: a) It has implemented a compliance plan to prevent any prohibited activities identified in FAR Clause 52. 222 -50, and to monitor, detect, and terminate the contract with a subcontractor engaging in prohibited activities b) After having conducted due diligence, either— i. To the best of the offeror’s knowledge and belief, neither it nor any of its proposed agents, subcontractors, or their agents is engaged in any such activities ii. If abuses relating to any of the prohibited activities have been found, the offeror or proposed subcontractor has taken the appropriate remedial and referral actions 17

Defense Federal Acquisition Regulation Supplement (DFARS) 222. 17/Procedures, Guidance, and Information (PGI)Section 222. 1703 Policy, which includes references to: a) Department of Defense Instruction (Do. DI) 2200. 01 Combating Trafficking in Persons b) Do. DI 5525. 11 Criminal Jurisdiction Over Civilians Employed By or Accompanying the Armed Forces Outside of the United States, Certain Service Members, and Former Service Members c) The requirement for a Quality Assurance Surveillance Plan (QASP) to provide for monitoring human trafficking compliance in accordance with FAR 52. 222 -50 222. 1704 Violations and Remedies a) If the contracting officer receives information indicating that the contractor has failed to comply with the requirements of FAR 52. 222 -50, the contracting officer shall notify the Geographic Combatant Commander and Do. D CTIP Program Manager. 222. 1770 Procedures a) The Defense acquisition professional should audit compliance with CTIP policy, using the sample checklist or a similar checklist. 18 222. 1771 Solicitation Provision a) Unless the solicitation includes DFARS 252. 204 -7007, include DFARS 252. 222 -7007, Representation Regarding Combating Trafficking in Persons, in all solicitations and contracts that exceed the simplified acquisition threshold.

DFARS Representation (252. 222 -7007) Contract solicitations must include this provision, which states that the contractor: a) Will not engage in any trafficking in persons or related activities, including but not limited to the use of forced labor b) Has hiring and subcontracting policies to protect the rights of its employees and the rights of subcontractor employees and will comply with those policies in the performance of this contract c) Has notified its employees and subcontractors of— i. The responsibility to report trafficking in persons violations ii. Employee protection from reprisal for whistleblowing on trafficking in persons violations 19

Geographic Combatant Command CTIP Special Contract Requirement Defense acquisition professionals must: 1) Ensure that overseas solicitations and contracts include any applicable host country and designated operational area performance considerations. 2) Incorporate into the solicitation or contract the required human trafficking clauses. If appropriate, incorporate the Geographic Combatant Command's CTIP clauses for the contracting lead. 20

Justice for Victims of Trafficking Act (JVTA) The JVTA enhances victims services and increases training for federal personnel. Provisions include: • Increases penalties for traffickers and buyers • Establishes a Domestic Trafficking Victims Fund to increase victim assistance • Eases the requirements for U. S. citizens and legal permanent residents (LPLs) to • • • 21 obtain benefits and services Requires training for federal government personnel related to TIP Creates a Child Exploitation Investigations Unit within DHS Cyber Crimes Center Requires Do. D to provide Do. J with sex offender registration information for persons required to register who are released from military corrections facilities or convicted under the UCMJ and sentences without confinement

Prevention – Contract Phrases Pre-Award Phase • Ensure the FAR and DFARS provisions are in the contract, as appropriate. • Ensure the solicitation and contract over the $500, 000 threshold contained in the clause found in FAR 22. 1705 • Evaluate contractor's history of compliance with human trafficking regulations measured as a component of past performance • Ensure the contractor certifies that they and any proposed subcontractors have a compliance plan. 22 Post-Award Phase • Discuss the CTIP Compliance Plan with the contractor and any subcontract requirements. • Review Quality Assurance Surveillance Plan (QASP), which could include a plan for training, audits, housing inspections, interview with employees, etc. • Ensure the contractor knows the local labor laws. • Ensure all contracts performed outside the United States and over $500 K include a compliance plan and certification of compliance from each subcontractor. Contract Performance Management • Apply appropriate contract oversight to ensure the contractor is adhering to all contract terms and conditions relating to CTIP. • Take corrective action as necessary if the contractor fails to appropriately prevent human trafficking. • Identify the contractor requirements for a compliance plan and ensure annual compliance certification when required Contract Closeout • Include any violations of human trafficking regulations in the contractor's performance evaluation • Enter human trafficking evaluations into the Contractor Performance Assessment Reporting System (CPARS) and Federal Awardee Performance and Integrity Information System (FAPIIS).

Compliance Review Actions ü Verify that the contract contains appropriate human trafficking requirement clauses. ü Determine local area of operation requirements and adjust compliance questions, as necessary. ü Ensure contractors comply with trainings requirements, audits, housing inspections, and interviews with contractor employees. ü Evaluate the prime contractor’s controls, including the controls of the subcontractor(s). ü Use an interpreter, if necessary, preferably not in the employ of the contractor. ü Present noncompliance(s) at the subcontractor level to the prime contractor along with citing the prime contractor failing to control its subcontractor. ü Follow your agency’s notification protocol if CTIP contract violations are identified. ü Partner with local enforcement/criminal investigative support community to establish a working relationship. ü Contact law enforcement immediately if CTIP violations are suspected to have health or safety concerns. 23

Indicators Documents -Potential victim does not possess or control his or her own identification papers or travel documents; -Possesses personal identification documents that were altered by a third party without consent; -Is compelled to sign a contract that was not drafted in his or her native language Wages Safety -Potential victim does not control his or her own money; -Is paid far less than promised; -Does not receive pay, or has had wages withheld for a long periods of time -Potential victim has bruises or other signs of physical abuse; -Has been threatened with harm or harm to his or her family; Freedom -Potential victim refers to someone else to speak for him or her; -Appears to have been coached on what to say to law enforcement or other officials; -Isn’t allowed to socialize with neighbors, family or friends, or attend community events; -Is restricted behind locked doors or barbed wire 24 -Is being threatened by an employed with deportation or arrest Working & Living Conditions -Potential victim is doing a different job than expected; -Appears to have been deprived of food, water, sleep, medical care, or satisfactory living conditions; -Is forced to work in unsafe conditions

Response • Identifying and notifying the appropriate authority of human trafficking is everyone’s responsibility. If you suspect a human trafficking violation, follow your Services or agency’s protocol for notifying the appropriate authority. • If you suspect criminal activity, report the incident through your chain of command, the appropriate Do. D law enforcement authority, and the Do. D Inspector General Hotline. Department of Defense IG Hotline Call: 1 -800 -424 -9098 Website: www. dodig. mil/hotline 25

Response • The contractor must inform the Defense acquisition professional responsible for the contract immediately of any information received from any source about conduct that violates Department of Defense or United States law or policy and any actions taken against the wrongdoer (i. e. , employee or subcontractor). • The subcontractor must report to the prime contractor any violation or information received from any source about conduct that violates Department of Defense or United States human trafficking law or policy. The Defense acquisition professional must follow the contracting organization's protocol for reporting contract violations. If criminal activity is suspected, contact the appropriate law enforcement authority and contact the Department of Defense Inspector General. • 26

Response Procedure 1. Require Removal of Contractor or Subcontractor Employee 2. Require the Contractor to Terminate a Subcontract 3. Suspend Contract Payments 4. Decrement Award Fees 5. Terminate the Contract for Default or Cause 6. Recommend Suspension or Debarment 27

Do. D’s CTIP Case Process Flow 1. Report Concern “Incident Reporter” 2. Document Concern “Incident Taker” 3. Investigation “First Responder” If Do. D Law Enforcement If Local Law Enforcement 3 b. Process Complaint and Interact with Do. D “Local Authorities/Governments” Key Incident Reporting & Referral 28 4. CTIP Case Referral

Notify CTIP Program Office of referral Do. D’s CTIP Case Process Flow Key Service Member Incident Review & Disposition Do. D Civilian Incident Review & Disposition Contractor Incident Review & Disposition If Service Member 5. Uniform Code of Military Justice Review “Commander” 6. Prosecution “Judge Advocate” If Do. D Civilian 5. U. S. Criminal Code Review “Department of Justice” If Contractor Criminal If Contractor Non-Criminal 7. Punishment “Military Judge, Court Martial, or Non-Judicial Assessment” 8. Document in Defense Incident Based Reporting System (DIBRS) “Commander” 6. Prosecution “Federal, State, and Local Prosecutor” 7. Conviction and Sentencing “Judge or Jury” 8. Document in National Incident Based Reporting System (NIBRS) “Department of Justice” 5. U. S. Criminal Code Review “Department of Justice” 6. Prosecution “Federal, State, and Local Prosecutor” 7. Conviction and Sentencing “Judge or Jury” 5. Non-Criminal Case Review “Contracting Officer/COR” 6. Investigation and Admin Determination “Investigative Authority” 7. Remedy Determination and Documentation “Contracting Officer” Contracting Officer makes a recommendation on appropriate remedy and documents the contract file. 29 Decision on appropriate remedy Recommend 1 or more of the following: 1. Remove contract employee 2. Terminate a subcontractor 3. Withhold contract payment 4. Withhold award fee 5. Do not exercise contract option 6. Terminate contract 7. Refer to Suspension and Debarment Official 8. Take no action 8. Document in National Incident Based Reporting System (NIBRS) “Department of Justice” 8. Document in Federal Awardee Performance and Integrity Information System (FAPIIS) “Contracting Officer”

Conclusion You are now able to: ü Define human trafficking ü Describe laws and regulations related to human trafficking in government contracts ü Specify the responsibilities of Defense acquisition professionals in preventing human trafficking ü Recognize contract administration indicators of human trafficking ü Specify the responsibilities of Defense acquisition professionals in responding to human trafficking violations For more information, visit: http: //ctip. defense. gov/ 30

Department of Defense Combating Trafficking in Persons This is to certify that has successfully completed the CTIP Contracting and Acquisition Professionals training Linda. K. Dixon DOD Certified IAW DODI 2200. 01 Linda K. Dixon, Program Manager, Combating Trafficking in Persons Program Office