DynCorp Pays $21 Million to Settle Allegations of Inflated Costs on U.S. Government Contract

Key Takeaways

• $21 Million Settlement: DynCorp agrees to pay $21 million to resolve allegations of submitting inflated subcontractor charges under the State Department's CIVPOL contract.
• Overinflated Costs: The allegations center around excessive charges for hotel lodging and services such as guards, drivers, and translators during training for Iraqi police forces.
• Accountability for Contractors: U.S. authorities stress that federal contractors must act with integrity when handling taxpayer funds, and those who misuse government contracts will be held accountable.

Deep Dive

DynCorp International, LLC has agreed to pay $21 million to settle accusations of submitting inflated charges on a State Department contract. The charges stem from the company’s role in the "CIVPOL" contract, which tasked DynCorp with training Iraqi police forces, a mission of both critical importance and considerable complexity.

The settlement, announced on April 9, 2025, marks a resolution to a lengthy legal battle that dates back to a 2016 lawsuit. The government accused DynCorp of allowing one of its subcontractors to overcharge for lodging and labor services (fees for hotel accommodations, guards, drivers, translators, and supervisors) services provided in support of the police training mission in Iraq. According to the U.S. Department of Justice (DOJ), these inflated charges were then passed on to the State Department for reimbursement, in violation of DynCorp’s contractual obligations.

This isn't just a case of corporate missteps, it's a stark reminder of the responsibility that contractors shoulder when working with U.S. taxpayer dollars. The Civil Division’s Principal Deputy Assistant Attorney General, Yaakov Roth, pointed out that federal contractors are held to high standards and are expected to act with integrity, especially in challenging environments like conflict zones.

“Using times of crisis to profit at the expense of American taxpayers is simply unacceptable,” Roth said in his statement.

The case has been a point of emphasis for U.S. Attorney for the District of Columbia, Edward R. Martin Jr., who echoed a strong message in his remarks: “When you are given a government contract, you are taking money from the American people. This office will make sure you deliver on your promises.” His words highlight the commitment to holding contractors accountable and safeguarding public trust.

This isn’t the first time DynCorp’s practices have come under scrutiny. The company, based in Irving, Texas, and Falls Church, Virginia, was acquired by Amentum in 2020. Despite the change in ownership, the company remains embroiled in this legal fallout, underlining the importance of compliance in government contracts—even as companies shift hands.

In addition to the legal actions, the settlement serves as a clear message from Robert J. Smolich, Assistant Inspector General for Investigations at the Department of State Office of Inspector General. He emphasized that State Department contractors and subcontractors have a unique opportunity to contribute to global security. Those who attempt to exploit contracts, he said, will be held accountable.

The case, United States v. DynCorp International, LLC, is a reminder that even contractors with long histories in government work are not immune to scrutiny. This settlement, though significant, is part of broader efforts by the DOJ and the State Department’s Inspector General’s Office to ensure accountability in government contracting.

For DynCorp, the $21 million settlement isn’t just a financial penalty, it’s a symbol of the consequences that come with breaching the trust placed in government contractors. And for the government, it’s an opportunity to reinforce the idea that safeguarding taxpayer money is a top priority.

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