In a resolution that underscores the costs of misconduct in government contracting, DynCorp International, LLC has settled for $21 million with the Department of Justice over allegations of submitting inflated costs to the State Department. According to a statement released by the U.S. Attorney's Office, the company faced accusations tied to a contract for training civilian police forces in Iraq, where reportedly, subcontractor charges were bolstered beyond what was fair or necessary.
Caught in a legal bind, DynCorp, once based in Irving, Texas and Falls Church, Virginia before its acquisition by Amentum in 2020, was implicated in passing on exorbitant rates for services like hotel lodging and labor to the State Department. The government charged that DynCorp shirked its prime contractor duties, allowing one of its CIVPOL subcontractors to engage in charging excessive, uncompetitive, and unsubstantiated rates. U.S. Attorney Edward R. Martin, Jr., described the case as a breach of the False Claims Act, one that the government took seriously in its pursuit to rectify the financial improprieties.
Under the contract awarded back in April 2004, DynCorp's responsibilities included not just training but also logistical support for the police force initiative. The lawsuit, filed in 2016, outlined the details of the inflated costs. Assistance from within the government was crucial, as Assistant Inspector General Robert J. Smolich for Investigations at the Department of State Office of Inspector General played a key role in bringing the issue to light.
