Ernst Cracks Down on Foreign Influence in National Security Contracting

WASHINGTON – U.S. Senators Joni Ernst (R-Iowa) and Jacky Rosen (D-Nev.), members of the Senate Committee on Armed Services, are building on their efforts to prevent the Pentagon from contracting with consulting firms that simultaneously advise the United States, Russia, China, and other countries of concern.

The consulting firm McKinsey & Company has been awarded federal government consulting contracts while working for Chinese and Russian governments.

Ernst’s Combating Obstructive National Security Underreporting of Legitimate Threats (CONSULT) Act became law in 2023 and enables the federal government to identify potential conflicts of interest involving consulting firms and government contractors, such as McKinsey & Company. It also allows those conflicts to be considered when determining whether a firm is eligible to receive national security contracts.

The new Ending Double Dealing Act expands upon that work by:

• Encompassing emerging technologies to ensure updates address advancements in artificial intelligence,
• Allowing the restriction of secret spending arrangements known as Other Transaction Agreements (OTAs) to close contracting loopholes, and
• Updating the definition of foreign adversaries to expand the list of countries covered.

“Allowing firms with financial or operational ties to foreign adversaries to secure federal contracts and influence defense-related decisions creates an unacceptable national security risk,” said Ernst. “Updating and enforcing conflict-of-interest protections is essential to safeguarding American interests and ensuring taxpayer-funded contractors are not advancing the objectives of hostile regimes.”

“At a time when the United States faces growing threats around the world, it’s critical that firms that provide mission support services to the Department of Defense are not working with our adversaries,” said Rosen. “That’s why Senator Ernst and I are introducing a bipartisan bill to ensure the Department of Defense cannot contract with companies that do business with hostile regimes.”

Read the full bill here.

Background:

Ernst has long worked to hold the Pentagon accountable for responsible spending, notably shepherding the CONSULT Act into law and pushing for OTA transparency with her Stop Secret Spending Act.

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