How the United Nations' Policies Hurt American Industry

"In 2015, the UN's 36 organizations spent more than $17 billion procuring goods and services, far exceeding the salaries for employees or the value of donated commodities. It should not be surprising that, with so many organizations deploying people from virtually every nation on the planet that are involved in literally thousands of projects, there would be problems and even scandals. However, even leaving aside the ugly reports of misbehavior by UN peacekeepers over the decades, there have been a significant number of problems with the procurements of goods and services.

During the 'Oil-for-Food' program with Iraq, a number of high UN officials were accused of taking kickbacks and rigging contracts. In this country, there have been numerous reports over the years of UN officials steering contracts for transportation and construction services to preferred bidders, often companies owned or controlled by local political interests or even criminal organizations. These entities provided substandard goods and services, overcharged the UN and at times diverted shipments and cash to other uses, such as the purchasing of drugs and guns...

The UN spends more than $500 million a year on air transportation services. Yet, when it comes to awarding contracts to provide this service, U.S. firms, often the best in the world, are virtually aced out. In 2015, the UN spent nearly $585 million on air transport services; U.S. firms won a paltry $9 million of work. This pattern repeats year after year. By way of contrast, in the same period, Russian companies won more than 20 percent of the work and earned around $120 million. Russian firms control some 75 percent of the highly lucrative helicopter transport contracts.

Statistically speaking, this doesn't smell right. Moreover, contracts continue to be awarded to Russian companies that have abysmal safety records and routinely failed to meet performance metrics.

Beyond the problem of outmoded procurement practices, national politics plays a role in how UN contracts are awarded. Efforts to reform the UN's procurement rules and regulations have been regularly stymied by precisely those countries that benefit from the current inefficient and unsafe system. A primary player in this is Russia...

Ambassador Nicky Haley has been one of the Trump Administration's outstanding voices in demanding that the UN take on rogue regimes, stop its vilification of Israel and end its corrupt practices. Secretary of State Rex Tillerson knows everything there is to know about international contracting. Together, these two need to advocate both for UN procurement reform and for world-class U.S. companies that deserve a fair chance to compete on an even playing field for UN work..."