The State Department official responsible for overseeing private contracts said Monday that the government was seriously considering terminating its $189 million arrangement with ArmorGroup North America because of recent disclosures of misbehavior by guards at the United States Embassy in Afghanistan.
At a hearing before a federal commission investigating wartime spending, Patrick F. Kennedy, the under secretary of state for management, said ArmorGroup managers had failed to notify the government about parties in which drunken, half-naked guards had urinated on and groped one another.
In response to commission members' demands that the company be held accountable, Mr. Kennedy said, "We are seeing a very, very serious case being made for termination."