Thursday, September 18, 2014

DynCorp sued for breach of contract by Afghanistan subcontractor --- DynCorp International, the country’s biggest logistics contractor in Afghanistan, is being sued by one of its subcontractors. -- The McLean-based defense contractor did not honor the agreement it had with CH2M Hill, a Colorado construction company that partnered with DynCorp on an Army contract in Afghanistan, according to the suit filed in the Fairfax County Circuit Court. -- “Contrary to CH2M Hill’s claims, DynCorp International has acted properly in response to CH2M Hill’s failure to meet its contractual obligations to [DynCorp], and we intend to hold CH2M Hill accountable in court and vigorously defend against this lawsuit,” the company said in an e-mailed statement. -- The suit claims that DynCorp did not pay CH2M Hill its fair share of profits on the contract over the last two years, a total of $26 million, according to the company. The two companies have been partners on the Army contract since 2007. DynCorp says it owes the company only $12 million, and made one payment of $6.3 million toward that end earlier this year. But in June, DynCorp sent CH2M a letter saying it did not owe the company any money, according to the suit. -- The lawsuit is the latest blow to a company that is already having a bad year. DynCorp has been cited for labor violations by the Defense Department inspector general, experienced falling revenues and replaced its chief executive twice in one month. The company was not re-selected for a $71 million contract with the Defense Intelligence Agency last month. - More, Amrita Jayakumar, Washingtonpost


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