Menu

Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Overbilling on Counter Narco-terrorism Contract

The Department of Defense Inspector General (DoD IG) found that Northrop Grumman and DynCorp International overcharged the government on a Counter Narco-terrorism Technology Program Office (CNTPO) contract. The IG found that Northrop, the prime contractor, and DynCorp, a subcontractor, knowingly applied excessive labor rates on the contract from October 2007 through March 2013, billing $91.4 million for 360 DynCorp employees who did not possess the required qualifications. The companies might have also improperly billed the government $10 million for 33 other employees, and $21.7 million for labor that exceeded the 8-hours-per-day/40-hours-per-week work schedule stipulated in the contract. For example, the IG found that Northrop charged the government for one DynCorp employee who lacked the required educational degree. In another example, Northrop billed for an employee with multiple job classifications, even though his actual work history and education qualified him for just one of those classifications and only a fraction of the billed hours were justified. Northrop and DynCorp also billed $3.2 million for labor hours in excess of 24 hours per day. The IG report blamed the contracting officers at the Army Contracting Command-Redstone Arsenal, who relied on Northrop to verify employees’ qualifications and did not adequately review contractor invoices prior to approving payment.

Misconduct Type
Cost/Labor Mischarge
Enforcement Agency
Defense – General
Contracting Party
Defense - Army
Court Type
N/A
Disposition
Investigative Finding
Date of Report
5/13/2014
Contractors Involved Penalty
Total
DynCorp International Inc. $0
Northrop Grumman $0
Further Information Released
DOD IG Report 5/13/2014

Federal Contractor Misconduct Database