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WASHINGTON — 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 misbehavior by guards at the U.S. Embassy in Afghanistan.

At a hearing before a federal commission investigating wartime spending, Patrick F. Kennedy said ArmorGroup managers had failed to notify the government about parties in which drunken, half-naked guards had urinated on and groped one another.

Dov S. Zakheim, a former undersecretary of defense, said photos from the parties posed as much of a threat to U.S. interests in Afghanistan as photos of abuses at Abu Ghraib posed in Iraq. The New York Times

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