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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.
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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