Before GLS won the contract, another large defense corporation, L-3 Communications, was providing translator services to American soldiers. When executives of the rival company found out about GLS’ victory, L-3 protested, which held up the contract. So GLS cut a backroom deal with L-3, promising to give it 22.5% of the new contract, or $1 billion, all without informing a contracting review board in the Defense Department.

 

Then, last week, the head of the Pentagon’s contracting auditing office reported that GLS had made the unprecedented decision of hiring 12 subcontractors to provide payroll services to linguists hired for U.S. military work. Defense Contract Audit Agency Director April Stephenson said GLS had awarded $2.9 billion (or 64%) of its $4.64 billion contract to 18 subcontractors, with most of that amount going to the dozen that do nothing except cut paychecks and handle benefits. Stephenson said if GLS continued to spend money at this rate on extra subcontractors, the government will end up being billed an extra $556 million for add-on expenses.

 

Stephenson also reported last week that DynCorp had charged the government an extra $50 million for providing dining facilities and living quarters for military personnel in Kuwait. She added that $13 million was eventually repaid for generators, rifle scopes, body armor and other equipment that was not delivered to U.S. forces.

-Noel Brinkerhoff

 

Defense Says Extensive Outsourcing on Iraq Linguist Contract is Jacking Up Costs (by Elizabeth Newell, Government Executive)

How Fierce Rivals Turned Teammates in a $1 Billion Contract Deal (by Elise Castelli, Federal Times)

DynCorp Billed U.S. $50 Million Beyond Costs in Defense Contract (by V. Dion Haynes, Washington Post)