DynCorp and Government Waste…This Time It’s Outsourcing Iraq Linguist Contracts

Monday, August 17, 2009
General (Retired) Barry R. McCaffrey, chairman of the board of directors of Global Linguist Solutions

Defense contractor DynCorp has been accused of numerous questionable business practices that could wind up costing the U.S. government hundreds of millions of dollars. Two of the controversies have involved the company’s Global Linguist Solutions (GLS), division which was awarded a $4.6 billion contract to provide linguists to the U.S. military.

 
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
 

Comments

Mars 11 years ago
Can someone tell me why they needed 12-18 subcontractors to do payroll services? Is there good reason for allowing that in the contract?
Hank 11 years ago
Name the companies who got the payroll subcontracts, and you will find retired military who have zero payroll/business knowledge. What a total giveaway. All these companies are women owned small business, hubby retired military, paying themselves each close to $1million in overhead salary(for the spouses) to keep payroll for 100 people.
Questioning 11 years ago
If they added costs that are not allowed then why doesn't the government take that money back?

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