State Department says DynCorp Iraq contract in 'disarray' from poor management
October 23, 2007: 03:19 PM EST
NEW YORK, Oct. 23, 2007 (Thomson Financial delivered by Newstex) -- A U.S. State Department audit of a Dyncorp International (NYSE.DCP) LLC contract under the Iraq Relief and Reconstruction Fund released Tuesday found that investigators were unable to determine what the company had provided under the contract or how $1.2 billion in funds were spent.
The report of the special inspector general for Iraq reconstruction said invoices and supporting documents for the Iraq police training program managed by the State Department's International Narcotics and Law Enforcement Affairs (INL) bureau 'were in disarray,' and that during the initial year of the contract, INL's workload increased 'substantially' without a corresponding personnel increase. 'The result was poor contract management,' the report read, 'a problem that continued until recently. As a result, INL cannot provide a detailed accounting of the $1.2 billion expended under its DynCorp Iraqi police training program.'
INL said that it recognized that it had poorly managed the contract and that it was instituting initiatives, including increase its work force and rejecting out-of-scope or unsupported work.
The Department's report concluded that INL needs additional time to 'demonstrate its commitment to better contract management.'
DynCorp is a Falls Church, Va.-based aerospace and defense company. Its stock rose 5.9% to $23.62 Tuesday.
October 23, 2007: 03:19 PM EST
NEW YORK, Oct. 23, 2007 (Thomson Financial delivered by Newstex) -- A U.S. State Department audit of a Dyncorp International (NYSE.DCP) LLC contract under the Iraq Relief and Reconstruction Fund released Tuesday found that investigators were unable to determine what the company had provided under the contract or how $1.2 billion in funds were spent.
The report of the special inspector general for Iraq reconstruction said invoices and supporting documents for the Iraq police training program managed by the State Department's International Narcotics and Law Enforcement Affairs (INL) bureau 'were in disarray,' and that during the initial year of the contract, INL's workload increased 'substantially' without a corresponding personnel increase. 'The result was poor contract management,' the report read, 'a problem that continued until recently. As a result, INL cannot provide a detailed accounting of the $1.2 billion expended under its DynCorp Iraqi police training program.'
INL said that it recognized that it had poorly managed the contract and that it was instituting initiatives, including increase its work force and rejecting out-of-scope or unsupported work.
The Department's report concluded that INL needs additional time to 'demonstrate its commitment to better contract management.'
DynCorp is a Falls Church, Va.-based aerospace and defense company. Its stock rose 5.9% to $23.62 Tuesday.
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