DynCorp International LLC has agreed to pay $21 million to settle allegations under the False Claims Act, after being accused of submitting inflated charges related to its subcontractors under a contract with the U.S. State Department.
The contract in question was for training Iraqi police forces, known as the “CIVPOL” contract, which DynCorp secured in 2004.
The company, which had its headquarters in Irving, Texas, and Falls Church, Virginia, was purchased by Amentum, another contractor, in November 2020.
Background on the CIVPOL Contract and Allegations
In 2004, DynCorp was awarded the CIVPOL contract by the State Department to provide training and support for Iraqi civilian police forces.
Their responsibilities included not just the training but also logistical support, such as arranging lodging for contractor personnel and providing services like security, translation, and transportation.
However, the U.S. government filed a lawsuit in 2016, accusing DynCorp of allowing one of its main subcontractors to charge unreasonably high, unsubstantiated rates for services such as hotel lodging and personnel like guards, drivers, and supervisors.
These excessive charges, according to the lawsuit, were knowingly passed on to the State Department for reimbursement, in violation of the contract terms.
Government Response and Settlement
Yaakov Roth, Principal Deputy Assistant Attorney General of the Civil Division, emphasized the importance of federal contractors maintaining honesty and fairness when working with the government.
He pointed out that exploiting conflicts and war for financial gain at the expense of taxpayers would not be tolerated.
Interim U.S. Attorney for the District of Columbia, Edward Martin Jr., added that the government would continue to pursue cases against contractors who misuse public funds or fail to deliver on their commitments.
In this case, the contractor was expected to help stabilize Iraq by training civilian police forces, but instead, it allegedly used the contract to profit unjustly.
The U.S. Department of State’s Assistant Inspector General, Robert J. Smolich, also voiced the department’s commitment to holding contractors accountable.
He stated that those who attempt to exploit government contracts for personal gain would face consequences.
The Legal Process and Resolution
The settlement reached in this case was the result of collaboration between several U.S. government agencies, including the Civil Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Columbia, and the U.S. Department of State’s Office of Inspector General.
Representatives for the U.S. government in this matter included Trial Attorneys Ben Young and Jeff McSorley, as well as Assistant U.S. Attorney Darrell Valdez. The case is officially titled United States v. DynCorp International LLC, Case No. 1:16-cv-01473 (D.D.C.).
It’s important to note that while DynCorp has agreed to the settlement, the claims made in the case are allegations, and no formal determination of liability has been made.
