US Firm to Pay $21m for Inflated Charges on Iraq Contract

DynCorp International LLC has agreed to pay $21 million to settle allegations under the False Claims Act that it knowingly submitted inflated subcontractor costs to the U.S. State Department while delivering services under the “CIVPOL” contract, which was intended to train Iraq’s civilian police forces.

The lawsuit, filed in 2016, accused DynCorp of passing excessive and unsubstantiated charges for lodging, security, translation, and logistics services from one of its subcontractors onto the U.S. government. The company, which was headquartered in Irving, Texas, and Falls Church, Virginia, was acquired by Amentum in 2020.

U.S. authorities said the settlement underscores a zero-tolerance stance toward fraud by federal contractors, particularly in conflict environments. The resolution follows a coordinated investigation by the Department of Justice, the U.S. Attorney’s Office for the District of Columbia, and the U.S. Department of State’s Office of Inspector General.

DynCorp did not admit liability, and the allegations remain unproven.

Full statement from US Department of Justice:

DynCorp International LLC (DynCorp) has agreed to pay $21 million to resolve False Claims Act allegations that it knowingly submitted inflated subcontractor charges under a State Department contract to train Iraqi police forces, known as the “CIVPOL” contract. DynCorp was a government contractor headquartered in Irving, Texas, and Falls Church, Virginia. Amentum, another government contractor with headquarters in Chantilly, Virginia, purchased DynCorp in November 2020.

The State Department awarded the CIVPOL contract to DynCorp in April 2004 to provide training for civilian police forces in Iraq. DynCorp was also tasked with supplying support for this effort, such as lodging for contractor personnel and various labor services. In a lawsuit filed in July 2016, the United States alleged that one of DynCorp’s main CIVPOL subcontractors charged excessive, uncompetitive, and unsubstantiated rates for hotel lodging and guard, translator, driver, and supervisor services, and that DynCorp, contrary to its obligations as a government prime contractor, knowingly passed on those charges to the State Department for reimbursement.

“Federal contractors have a duty be fair and honest when doing business with the government,” said Principal Deputy Assistant Attorney General Yaakov Roth of the Department of Justice’s Civil Division. “The Department will not tolerate those who use times of conflict and strife to enrich themselves at the expense of the American people.”

“As the Trump Administration zeroes in on fraud, waste, and abuse, this office will continue to seek settlements with outside entities that are taking advantage of their U.S. government contract by either not providing what they promised or misusing the funds in other ways,” said Interim U.S. Attorney Edward Martin Jr. for the District of Columbia. “This contractor was supposed to train civilian police forces to help the State Department provide some stability for a strategic partner. When you are given a government contract, you are taking money from the American people and this office will make certain you deliver on your promises.”

“State Department contractors and subcontractors have a unique opportunity to serve their country and contribute to the safety and security of Americans across the globe,” said Assistant Inspector General Robert J. Smolich for Investigations at the Department of State Office of Inspector General. “Today’s settlement sends a clear message that those who seek to exploit State Department contracts in order to defraud American taxpayers will be held accountable for their actions.”

The resolution obtained in this matter was the result of an effort by 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.

Trial Attorneys Ben Young and Jeff McSorley and Assistant U.S. Attorney Darrell Valdez for the District of Columbia represented the United States in this matter.

The case is captioned United States v. DynCorp International LLC, Case No. 1:16-cv-01473 (D.D.C.).

The claims resolved by the settlement are allegations only and there has been no determination of liability. 

(Source: US DoJ)