WASHINGTON, Jan. 31 (UPI) -- A new U.S. investigation from the Special Inspector General for Iraq Reconstruction has discovered a nearly $50 million waste of money on a single contract.
The report details convoluted contracting practices, inconsistent data and lax oversight by U.S. State Department officials.
DynCorp International was hired in April 2004 by the State Department to build more than 1,000 trailers to house international police trainers at a camp to be built on the grounds of the Adnan Palace in Baghdad.
Dyncorp hired a subcontractor, which in turn hired another subcontractor to build the trailers, a contract worth more than $50 million. But before it had even issued a subcontract, Dyncorp billed the State Department for $18 million in costs. In the meantime, with the approval of the U.S. Coalition Provisional Authority liaison to the Iraqi Interior Ministry, DynCorp built an Olympic-sized pool and 20 VIP housing units to be used by Iraqi officials at an additional cost of $4.2 million that was not in the original contract. The Interior Ministry also specified that the camp be built outside the palace grounds.
Four months into the contract, in September 2004, the State Department contracting officer told DynCorp not to proceed with the work because the camp was deemed to be unsafe. At the time the subcontractor had built at least 500 trailers, and more were constructed after that.
Although there should have been a stop work order, trailer construction continued and the trailers were held in paid storage, and they are on their way to Baghdad now, although no one has decided how they might be used. According to SIGIR, there have been discussions about sending the trailers to disaster areas like Louisiana and Pakistan. They may now be used by the U.S. Embassy in Baghdad.
The contract for trailers the State Department decided should not be built has now cost $43.8 million for the equipment, $4.6 million to transport them to Baghdad, and $275,000 for three months storage in Baghdad.
The SIGIR report also determined Dyncorp can not account for some $34 million in body armor, armored vehicles and communications purchased under a related contract.
