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DynCorp International

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DynCorp International Inc
Type Public (NYSE: DCP)
Founded 1946
Headquarters Falls Church, Virginia, United States
Key people Robert B. McKeon, Chairman
Dale M. LaBay, President, CEO and Director
Jay K. Gorman, EVP and COO
Robert B. Rosenkranz, President, International Technical Services
Natale S. DiGesualdo, President, Field Technical Services
Industry private military contractor, aircraft maintenance
Products Drug eradication, law enforcement training, logistics, security services; maintenance for aircraft, support equipment, and weapons systems
Revenue $1,967.0 Million USD (2006)
Net income $7.2 Million USD (2006)
Employees 14,400 (2006)
Slogan We are innovation in action
Website www.dyn-intl.com

DynCorp International (IPA: )[1] is a United States-based private military contractor (PMC) and aircraft maintenance company. The company, based in Falls Church, Virginia, has provided teams for the U.S. military in major theaters, such as Bolivia, Bosnia, Somalia, Angola, Haiti, Colombia, Kosovo and Kuwait.[2] DynCorp International also provided much of the security for Afghan interim president Hamid Karzai's presidential guard and trains much of Afghanistan's and Iraq's fledgling police force.[3] DynCorp was also hired to assist recovery in Lousiana and neighboring areas after Hurricane Katrina.[4][5]

Contents

[edit] History

DynCorp traces its origins from two companies formed in 1946: California Eastern Airways, an air freight business and Land-Air Inc, an aircraft maintenance company. Two years after being organized, California Eastern Airways—- despite emerging as the second largest independent air carrier—- filed for bankruptcy in May 1948.[6]

DynCorp has been one of the United States federal government's top 25 contractors. In March 2003, DynCorp was acquired by an even larger government contractor, Computer Sciences Corporation (CSC) for approximately US$914 million. Less than two years later, CSC announced the sale of three units of the business to a private equity firm, Veritas Capital, for US$850 million. The units sold were DynCorp International, DynMarine and certain DynCorp Technical Services contracts.[7]

[edit] Rich Aviation Heritage

Brief History of DynCorp International DynCorp International LLC has its origins with two companies formed in 1946—Land-Air, Inc., and California Eastern Airways.

Land-Air, Inc., which became the predecessor to DynCorp International's Maintenance and Technical Support Services (MTSS) Division, reached a major milestone in 1951, when it was awarded the first Contract Field Teams (CFT) contract by the Air Force Logistics Command (AFLC). Contract field teams provide mission support and depot-level repair to U.S. military aircraft and weapons systems worldwide. DynCorp International and its predecessors have provided services under the CFT program continuously since being awarded that first contract.

Also in 1951, Land-Air, Inc. was acquired by California Eastern Airways, Inc. (later California Eastern Aviation, Inc.). In 1962, California Eastern Aviation, Inc., changed its name to Dynalectron Corporation, and in 1987, Dynalectron changed its name to DynCorp.

In 1951, DynCorp International pioneered a completely new way to service aircraft, the Contract Field Teams. This was a major innovation in aviation services. Under the Contract Field Teams system, teams of aviation-maintenance experts are deployed anywhere around the world to provide fast, flexible maintenance services to aircraft at their home bases. Previously, the U.S. military and civilian aviation companies had two choices: fly aircraft to a central maintenance facility or maintain full-maintenance crews at several facilities.

DI’s Contract Field Teams have maintained fixed- and rotary-wing aircraft for all branches of the United States Armed Forces ever since—an unparalleled record of 54 years. Where warranted by the number of aircraft in a particular location, some CFT crews are permanently stationed with their aircraft. Others are mobile and are deployed on a regular schedule or moved quickly to the field to meet emergency needs.

In 1998, DynCorp established DynCorp Technical Services, Inc. (DTS), and transferred its existing aerospace and international-division business—including contracts later held by DynCorp International—to the new DTS subsidiary.

In December 2000, DynCorp formed DynCorp International LLC, and transferred to it all of its international business. DynCorp Technical Services LLC continued to perform DynCorp’s domestic contracts.

In March 2003, DynCorp and its subsidiaries were acquired by Computer Sciences Corporation (CSC). DynCorp remained the parent of its existing subsidiaries, including DTS and DynCorp International LLC, and CSC became their ultimate parent.

In 2004, CSC made a strategic decision to divest itself of its non-core businesses, including security and aviation services. As part of that decision, CSC transferred its aviation services business segment into a separate CSC subsidiary, DTS Aviation Services. The U.S. Government approved the transfer of government prime contracts that were part of this business to DTS Aviation Services on September 30, 2004.

On December 12, 2004, DynCorp and CSC entered into an agreement to sell their equity interests in DynCorp International LLC, including its subsidiaries, Dyn Marine Services LLC, and DTS Aviation Services LLC, to DI Acquisition Corp., which later was renamed DynCorp International Inc. DynCorp International Inc. is the corporate parent of DynCorp International LLC. [8]

[edit] United Nations Support

Civilian police (CIVPOL) from over 50 countries are deployed around the globe in support of international peacekeeping operations. Most CIVPOL programs are sponsored by the United Nations (UN), but they are also sponsored by regional security organizations such as the Organization for Security and Cooperation in Europe (OSCE) or by coalitions of interested countries. Today, more than 7,500 international police are deployed in UN CIVPOL missions alone. Their presence promotes peace and stability in areas recovering from conflict and their efforts to develop modern, democratic indigenous police forces help to ensure that peace and stability can be sustained, even after international peacekeepers depart. CIVPOL have become a vital tool of U.S. foreign policy. Only 50 American police participated in the Haiti CIVPOL mission in 1994. Since then, over 4,000 experienced U.S. police officers and law enforcement experts have participated in CIVPOL missions in Bosnia-Herzegovina (1996-2002); the Eastern Slavonia region of Croatia (1996-2003); Jericho (2002); Palestinian Authority (2003); Sierra Leone (2003-2004); East Timor (1999-2005); OSCE Head Quarters in Vienna (2002-2004); Haiti (1996-2000; 2004-present); Kosovo (1999-present); Serbia & Montenegro (2001-present); Macedonia (2002-present); Afghanistan (2002-present); Iraq (2003-present); and Liberia (2003-present). Currently, more than 1,000 American officers are deployed to CIVPOL missions. This dramatic climb in U.S. participation in CIVPOL missions reflects the U.S. Government’s recognition of its importance to peacekeeping missions in the post-cold war world. Because the United States does not maintain a national police force, we must seek volunteers on an individual basis. To handle such a large task, the State Department contracts with private companies, currently DynCorp International, Civilian Police International LLC, and PAE Government Services, Inc. The contractors implement requirements provided by the US Department of State to recruit, select, equip, and deploy police from all over the country. After conducting a rigorous screening process, the companies contract with individual officers to provide their salary and benefits for one year. [9]

[edit] Controversy

[edit] Sex slavery

Employees of the company were involved in the trading of sex slaves while working in Bosnia. A DynCorp employee, Kathryn Bolkovac, was fired after revealing that Dyncorp employees had frequented brothels where women had been imprisoned. Another Dyncorp employee, Ben Johnson, was also fired after revealing the involvement of some of his fellow co-workers in forced-prostitution rings in Bosnia.[10] At least 13 DynCorp employees have been sent home from Bosnia—- and at least seven of them fired—- for purchasing women or trafficking of women and children, though none have ever faced criminal sanctions.[10]

[edit] Gaza strip

On October 15, 2003, three DynCorp employees were killed in a bombing in the Gaza Strip. They were serving as security guards for American diplomats, supplementing the Diplomatic Security Service.[11]

[edit] Criticism in Iraq

In September 2005, Brigadier General Karl Horst, deputy commander of the Third Infantry Division in charge of security in Baghdad after the 2003 Invasion of Iraq, had this to say regarding some members of the private security firms operating in Iraq: "These guys run loose in this country and do stupid stuff. There's no authority over them, so you can't come down on them hard when they escalate force... They shoot people, and someone else has to deal with the aftermath. It happens all over the place."[12]

[edit] Aggressive behaviour in Afghanistan

DynCorp has come under heavy criticism in Afghanistan for aggressive behaviour, with one security guard allegedly slapping the Afghan Transport Minister.[13] They were replaced as Karzai's Presidential Guard in November 2005, apparently in a bid by Karzai to demonstrate his independence and because of DynCorp's aggressive approach.[14] DynCorp continues with both the Afghanistan Police Programme and the Poppy Elimination Programme in Afghanistan. The qualification of personnel in the police programme have been called into question by the previous minister of Interior Jalili, as many of the police advisors have little experience.[citation needed]

[edit] Law enforcement in the USA

DynCorp, along with partners Dewberry of Fairfax, Va., and Parsons Corporation of Pasadena, California, were awarded a contract to provide temporary housing to hurricane victims by FEMA.[15] It is not known how many security contractors DynCorp may have sent with regards to that contract. However 13 officers were dispatched to assess possible damage to five hospitals in New Orleans, including the Memorial Medical Center and one in Biloxi, Mississippi at the request of Ross Perot and Tenet Healthcare.[16]

Writing mainly about the involvement competitor Blackwater USA, columnist Jeremy Scahill of The Nation, stated that "mercenaries from companies like DynCorp, Intercon, American Security Group, Blackhawk, Wackenhut and an Israeli company called Instinctive Shooting International (ISI) are fanning out to guard private businesses and homes, as well as government projects and institutions."[17] This passage seems to have angered, then president and CEO, Stephen J. Cannon enough to respond. In his letter Cannon protests Scahills use of words such as "mercenaries" and "fan out" and feels that DynCorp is the victim of bias.[18]

[edit] References

  1. ^ The pronunciation of the company has been confused in the past, with mispronunciations such as "Dine-Core" (silent "p") and "Dine-uh-Core" commonplace; the proper pronunciation is "Dine-Corp," which includes the "p" sound, as stated by Herb Lanese, the new CEO, at an employee town hall meeting, January 2007 in Fort Worth.
  2. ^ Outsourcing Post-Conflict Operations. Princeton University (2004). Retrieved on November 11, 2006.
  3. ^ IRAQ: Misjudgments Marred U.S. Plans for Iraqi Police. New York Times Company (2006). Retrieved on November 11, 2006.
  4. ^ Merle, Renae (2006-03-14). "Storm-Wracked Parish Considers Hired Guns". Washington Post: A01. Retrieved on 2006-05-21. 
  5. ^ Jonsson, Patrik (2006-03-28). "Katrina survivors play defense against looting". Christian Science Monitor. Retrieved on 2006-12-15. 
  6. ^ "California Eastern Files Under Bankruptcy Act", Wall Street Journal, 1948-05-14, p. 9.
  7. ^ CSC Sells DynCorp Units for $850m. Datamonitor Computerwire (2004-12-14). Retrieved on October 16, 2006.
  8. ^ DI pioneered a completely new way to service aircraft. DynCorp International (2007). Retrieved on April 5, 2007.
  9. ^ The United States and International Civilian Policing (CIVPOL). US Department of State (May 18, 2005). Retrieved on April 5, 2007.
  10. ^ a b Capps, Robert (2002-08-06). Sex-slave whistle-blowers vindicated. Salon.com. Retrieved on May 21, 2006.
  11. ^ Clabaugh, Jeff (2003-10-15). American victims in Gaza bombing worked for DynCorp. Washington Business Journal. Retrieved on May 21, 2006.
  12. ^ Finer, Jonathan (2005-09-10). "Security Contractors in Iraq Under Scrutiny After Shootings". Washington Post: A01. Retrieved on 2006-12-15. 
  13. ^ US chides 'hostile' Karzai guards. BBC News (2004-10-14). Retrieved on September 16, 2006.
  14. ^ Baseer Saeed, Abdul (2005-11-13). Karzai's Afghan Protectors. Institute for War and Peace Reporting. Retrieved on September 16, 2006.
  15. ^ DynCorp International and its Partners in Partnership for Temporary Housing (PaTH) Awarded a Contract by FEMA. Dyncorp International (2006-08-16). Retrieved on December 15, 2006.
  16. ^ Hamm, Crystal. DynCorp International Provides Security and Relief in Louisiana After Katrina. Dyncorp International. Retrieved on December 15, 2006.
  17. ^ Scahill, Jeremy (2005-09-21). "Blackwater Down". The Nation. Retrieved on 2006-12-15. 
  18. ^ Scahill, Jeremy (2005-11-01). Tender Mercenaries: DynCorp and Me. Retrieved on December 15, 2006.

[edit] External links

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