DynCorp International LLC

Material Facts

• DynCorp and the government were parties to numerous cost reimbursement contracts administered by DCMA, including Contract No. W52P1J-07-D-0007.
• Steven F. Gaffney served as DynCorp's CEO from August 25, 2010, until his employment was terminated on July 10, 2014.
• The 2010 Employment Agreement and 2014 Separation Agreement required DynCorp to pay severance following Gaffney's termination.
• The employment agreement provided for a base salary of $2,000,000 and a target bonus equal to 130 percent of base salary.
• DynCorp included severance costs in its 2015 and 2016 incurred cost proposals within its G&A expense pool.
• DCAA audited DynCorp's proposed amounts on unsettled flexibly priced contracts for calendar years 2015 and 2016 and questioned indirect severance costs based on reasonableness.
• The statutory compensation cap ranged from $693,951 in 2010 to $1,144,888 in 2014.
• DynCorp calculated the severance payments as two times the sum of base salary and bonus.
• DCMA's Contracting Officer's Final Decision disallowed amounts from DynCorp's 2015 and 2016 G&A pools and unilaterally established final indirect cost rates for those years.

Parties

Appellant

DynCorp International LLC

Respondent Agency

Defense Contract Management Agency

Contract Number

W52P1J-07-D-0007