DynCorp International
Wikipedia 🌐DynCorp
Note : For company history before bame change, see Dynalectron Corporation
"DYNalectron CORPoration" => "DYNCORP" Interenational
Employees
...
[DynPort Vaccine Company, LLC], a DynCorp joint venture with Porton International Ltd., researched biological weapons.
Type Private
Industry Military contractor, service-focused
Founded 1946 [For history from 1946, until it was re-named to DynCorp, see Dynalectron Corporation ]
Headquarters McLean, Virginia (2013)[1]
Area served Worldwide
Key people George Krivo, CEO (2017)[2]
Products Aviation maintenance, air operations, drug eradication, law enforcement training, logistics, contingency operations, security services, operations and maintenance for land vehicles (MRAPs), maintenance for aircraft, support equipment, and weapons systems, intelligence training and solutions, international development[3]
Revenue US$ 3.047 billion (2010)[citation needed]
Operating income US$ 120.00 million (2008)[citation needed]
Net income US$ 47.95 million (2008)[citation needed]
Total assets US$ 1.402 billion (2008)[citation needed]
Total equity US$ 424.29 million (2008)[citation needed]
Owner Cerberus Capital Management
Number of employees 14,000 (2007)[4][better source needed]
Website Dyn-intl.com
DynCorp (/ˈdaɪnkɔːrp/),[5] most recently DynCorp International, is an American private military contractor.[6] Started as an aviation company, the company also provides flight operations support, training and mentoring, international development, intelligence training and support, contingency operations, security, and operations and maintenance of land vehicles.[7] DynCorp receives more than 96% of its more than $3 billion in annual revenue from the U.S. federal government.[8][9]
The corporate headquarters are in an unincorporated part of Fairfax County near Falls Church, Virginia. The company's contracts are managed from its office at Alliance Airport in Fort Worth, Texas.
DynCorp has provided services for the U.S. military in several theaters, including Bolivia, Bosnia, Somalia, Angola, Haiti, Colombia, Kosovo and Kuwait.[10] 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.[11] DynCorp was also hired to assist recovery in Louisiana and neighboring areas after Hurricane Katrina.[12][13] DynCorp has held one contract on every round of competition since receiving the first Contract Field Teams contract in 1951. DynCorp won the LOGCAP II contract and is one of three contract holders on the current LOGCAP IV contract.[clarification needed][jargon]
History[edit]
Beginnings (1946–1961)
[ See Dynalectron Corporation ]
Dynalectron (1962–1987)
[ See Dynalectron Corporation ]
DynCorp and expansion (1987–2003)
In 1987 Dynalectron changed its name to DynCorp.[citation needed] In 1988 DynCorp went private to avoid a hostile takeover by Miami financier Victor Posner, via an employee initiative led by [Daniel Richard Bannister (born 1930)]. Bannister, as T. Rees Shapiro wrote in his 2011 obituary, "was paid $1.65 an hour when he joined DynCorp as an electronics technician in 1953," rising to serve as its president and CEO (1985 to 1997).[27]
In 1994 DynCorp's revenues were approximately $1 billion.[citation needed] By the time of his retirement in 2003, Shapiro notes that [Daniel Richard Bannister (born 1930)] "oversaw the acquisition of more than 40 companies… [and] was credited with helping to mold… an aviation services company into a sprawling conglomerate that employed 24,000 people and earned $2.4 billion in annual revenue."[27] As well he "oversaw DynCorp contracts to operate missile test ranges for the Defense Department, develop vaccines for the National Institutes of Health and install security systems in U.S. embassies for the State Department."[27] Shapiro notes that during Bannister's tenure Dyncorp had also "supplied bodyguards to Haitian President Jean Bertrand Aristide in the 1990s and to Afghan President Hamid Karzai in the early 2000s."[27]
With the reductions in military spending in the 1990s, DynCorp expanded their focus to the growing tech market.[15] It bought 19 digital and network service firms and acquired contracts with the government's information technology (IT) departments.[15] By 2003 roughly half of DynCorp's business came from managing the IT departments of the Central Intelligence Agency, Federal Bureau of Investigation, and the U.S. Securities and Exchange Commission, among others.[15] In 1999 DynCorp moved its headquarters to Reston, Virginia.[17]
In December 2000 DynCorp formed DynCorp International LLC, and transferred all its international business to this entity.[citation needed] DynCorp Technical Services LLC continued to perform DynCorp's domestic contracts.[citation needed]
In March 2003 DynCorp and its subsidiaries were acquired by Computer Sciences Corporation (CSC) for approximately $914 million.[28] Less than two years later, CSC announced the sale of three DynCorp units (DynCorp International, DynMarine and certain DynCorp Technical Services contracts) to Veritas Capital Fund, LP for $850 million.[28] After the sale, CSC retained the rights to the name "DynCorp" and the new company became DynCorp International.[29]
In 2006 DynCorp International went public on the New York Stock Exchange under the symbol DCP.[30]
On April 12, 2010, DynCorp International announced a conditional deal to be acquired by private equity investment firm Cerberus Capital Management for $17.55 per share ($1 billion).[31] The deal was agreed on 7 July 2010.[32]
In December 2011 the company hired Michael Thibault, former co-chairman and commissioner of the Commission on Wartime Contracting in Iraq and Afghanistan (CWC), as vice president of government finance and compliance. Thibault worked for many years at the Defense Contract Audit Agency (DCAA), serving as Deputy Director from 1994 to 2005.[33] In 2011 Dyncorp set a company record with 12,300 new hires, bringing the total number of employees to 27,000.[34]
Services[edit]
A DynCorp employee working with aviation support
DynCorp International provides aviation support to reduce the flow of illicit drugs, strengthen law enforcement, and eliminate terrorism.[35][36] Their air operations include the operation of fixed-wing and rotary aircraft on and around aircraft carriers for either combat or non-combat missions, aviation life support missions, and aerial/satellite imagery.[37][38] DynCorp was hired to strengthen the Afghan air force, helping to train Afghan pilots so they could, in turn, train other Afghans.[39] They have also provided air operations support in Iraq, including search and rescue, medical evacuations, and transporting quick reaction forces.[40][41]
DynCorp International began as an aeronautical company in the 1950s and continues to provide aviation support globally. Aviation support including emergency response air programs,[42] aircraft maintenance,[43] theater aviation support management,[44] helicopter maintenance support,[45] supportability and testing.[35][36][46]
In 2012 DynCorp played a key part in the Space Shuttle Endeavour's final flight as it made its way from the Kennedy Space Center in Orlando to the California Science Center in Los Angeles aboard NASA's specially crafted Shuttle Carrier Aircraft (SCA). The SCA was a uniquely configured Boeing 747-100 aircraft.[47][better source needed][48] DynCorp mechanics worked with NASA and other support contractors performed maintenance and inspection services to the SCA. DynCorp's involvement in Endeavour's final flight was part of a contract NASA awarded to the company in April 2012 to provide aircraft maintenance and operational support at various locations throughout the country.[49]
Emergency response air programs[edit]
DynCorp has been working with the California Department of Forestry and Fire Protection (known as CAL FIRE) to suppress and control wild land fire.[50] DynCorp flies and maintains Grumman S-2 Tracker fire retardant air tankers and OV-10A aircraft, and maintains and services civilian UH-1H Super Huey helicopters flown by CAL FIRE pilots. Operating from across California, aircraft can reach most fires within 20 minutes.[50]
Aircraft maintenance[edit]
DynCorp provides aircraft maintenance, fleet testing and evaluation for rotary, fixed, "lighter-than-air", and unmanned aircraft.[37][38] Specifically, they provide on-site work for project testing, transient, loaner, leased and tested civilian aircraft services. DynCorp also performs supportability and safety studies as well as off-site aircraft safety and spill containment patrols and aircraft recovery services.[51] DynCorp has received contracts for aircraft maintenance with the United States Navy,[46] the U.S. Air Force,[52] the U.S. Army,[53] and NASA.[54] DynCorp provides aircraft maintenance in countries including the Republic of the Philippines,[55] the United States, throughout Europe, Southwest Asia, the Middle East, and Africa.[44] Additionally, DynCorp provides aircraft maintenance support to facilities including the NAS Patuxent River,[56] Johnson Space Center in Houston, the Langley Research Center in Hampton, Virginia, NASA facilities in El Paso, Texas, Edwards Air Force Base in California,[54] and Robins Air Force Base (AFB) in Georgia.[52]
Among its notable awards is its unbroken record of having received a contract in every round of competition under the United States Air Force-managed Contract Field Teams (CFT) program since the CFT program started in 1951.
The company recently opened up an office in Huntsville, Alabama, to allow it to further focus on its aviation business. The Army Materiel Command, Army Contracting Command and the U.S. Army Security Assistance Command all have or soon will have their headquarters on Redstone Arsenal.[57] The U.S. Air Force chose DynCorp to supply support services for the military's T-6 and T-6B trainer aircraft. As part of that contract DynCorp will open, operate and manage Contractor Operated and Maintained Base Supply facilities at nine Air Force and Navy locations.[58]
Helicopter maintenance support[edit]
DynCorp International has been the incumbent recipient of helicopter maintenance and support contracts supporting the U.S. Army, the U.S. Air Force, and the U.S. Navy.[41][59] It also received the task order to provide theater aviation support management for US Army helicopters in Europe (TASM-E).[60] The U.S. Army Contracting Command gave DynCorp International a contract to provide a maintenance augmentation team for the Kuwait Air Force's AH-64D Apache helicopter maintenance program. DynCorp has worked as a partner for supporting the Air Force's fleet of 39 F/A-18 Hornet aircraft program since 1997.[59][61]
A significant part of the company's business since the 1990s has come from contingency operations[62] support.[63] The company supports existing bases in Southern Afghanistan, builds new ones as needed, and provides base support services.[64]
DynCorp international development
In January 2010 DynCorp International combined with World Wide Humanitarian Services (WWHS) and Casals & Associates to form DI Development.[65] DI Development provides humanitarian aid, reconstruction to conflict and post-conflict areas, and governance reforms.
DynCorp International made several acquisitions in 2009 and 2010 to adapt to the defense sector's shift towards diplomacy and development work, in particular acquiring an international development firm in order to enter the international aid community.[66] DI Development is particularly active in Africa and Latin America. In Africa DI Development strengthened government financial management in Ghana, assisted in peace and recovery advancement in Uganda, and led anti-corruption programs in Madagascar, Malawi, and Nigeria.[67][68] In Latin America DI Development implemented anti-corruption, transparency, and accountability programs in Guatemala, El Salvador, Nicaragua, and Panama, and provided democracy and governance initiatives in Mexico, Bolivia, and the Dominican Republic.[69]
In 2010 DynCorp International acquired Phoenix Consulting Group to expand the company into intelligence training and solutions.[70][better source needed][71] By acquiring the Phoenix Consulting Group, DynCorp provides training courses to the intelligence community at the Phoenix Training Center.[72] Dyncorp International employs 300 intelligence professionals to offer highly specialized training for intelligence, counterintelligence, special operations and law enforcement personnel.[73] It also provides linguist operations, including language training, translation specialists recruiting, and field translation support for the U.S. armed forces.[74]
Through a joint venture with McNeil Technologies called Global Linguist Solutions, Dyncorp was awarded a five-year contract to provide management of translation and interpretation services to support U.S. Intelligence and Security Command (INSCOM) as part of Operation Iraqi Freedom.[75] Under the contract, DynCorp employed 6,000 locally hired translators and 1,000 U.S. citizens who are native speakers of languages spoken in Iraq.[76] DynCorp International was also given a $17.1 million task order to provide leadership to military personnel of the Democratic Republic of the Congo. The program focuses on training junior and mid-level personnel in areas such as communications, logistics, and engineering.[77]
DynCorp president Steven Schorer expects the training and support logistics for the military and intelligence community to grow significantly in the coming years.[78]
Two DynCorp American employees were among the five killed in Jordan by a co-worker on 9 November 2015. The incident occurred at the International Police Training Centre in Zarqa. The program the men were working on is funded by the State Department's Bureau of Diplomatic Security and Bureau of International Narcotics and Law Enforcement.[79]
DynCorp provides military base operations and vehicle maintenance. They manage installations for military bases for the Department of Defense and the Department of State, and provide security services, fire and rescue emergency services, and IT/telecommunication services. In particular, DynCorp supports a military base camp in Kosovo, providing power plant maintenance, fueling services, and grounds maintenance.[80] DynCorp is also active in vehicular maintenance, in particular providing the United Arab Emirates with depot-level maintenance, facilities management, and commercialization for its 17,000 ground vehicles.[81] In April 2012 DynCorp International was awarded a contract with the U.S. Navy to provide facility support services for personnel from the Naval Mobile Construction Battalion unit Timor-Leste, including living quarters, internet and telephone services, bathroom facilities, laundry services, kitchen facilities, vehicle/driver/language support, procurement services, warehousing and other services.[82]
DynCorp also formed a joint venture with Oshkosh Defense, Force Protection Industries, and McLane Advanced Technologies to pursue a $3 billion five-year Army contract for support and maintenance of mine-resistant ambush-protected vehicles.[78] The U.S. Defense Department gave DynCorp the Nunn-Perry Award in recognition of its mentor-protege arrangement with CenterScope Technologies, in which it provided coaching in development of new markets, establishing international operations and in worldwide logistics. As a result of this mentoring CTSI's revenue grew from $5 million to $32 million in 18 months.[83]
DynCorp provides personal security throughout various parts of the world.[84] It supplies Africa, Latin America, and the Middle East with threat assessment protection, perimeter security, base security, and guard services.[85] DynCorp supported the U.S. Army in the Persian Gulf with vehicle searches, roving patrols, and explosive-detecting dogs.[86] It also provides personal security to many regions of Iraq and Afghanistan.[87]
Culpeper National Security Solutions is a unit of DynCorp.[88]
DynCorp delivers training for multiple sectors, including security sector reform, interior and defense personnel in underdeveloped nations, and law enforcement. Since 1994 DynCorp has trained and deployed 6,000 law enforcement workers in 16 countries, including Iraq and Afghanistan.[89][90] DynCorp is looking to partner with Raytheon as a prime or subcontractor on the Teach, Educate, Coach program, which is part of the Army's Warfighter Field Operations Customer Support program.[78]
Controversies[edit]
See also: Colombian armed conflict and Plan Colombia
In September 2001 Ecuadorian farmers filed a class-action lawsuit against DynCorp. On February 15, 2013, the court granted summary judgment to DynCorp, dismissing the sole remaining human health and medical monitoring claims Ecuadorian plaintiffs had brought in connection with counternarcotic aerial herbicide spraying operations in southern Colombia.[91] The plaintiffs are preparing to appeal the dismissal.[92]
An extensive accusation concerning DynCorp's activities and alleged abuses in Colombia was presented against DynCorp at the Hearing on Biodiversity of the Permanent Peoples' Tribunal, session on Colombia at the Cacarica Humanitarian Zone from February 24 to 27, 2007.[93]
Three DynCorp employees died when their helicopter was shot down during an anti-drug mission in Peru in 1992.[8]
On November 29, 2008, a lengthy New York Times article questioned the potential conflict of interest in the hiring by Veritas Capital Fund, LP, holding company for DynCorp, of Gen. Barry McCaffrey. McCaffrey had previously served as White House "Drug Czar", where he shaped future federal public-private partnership in drug enforcement policy.[94]
According to Human Rights Watch, there is substantial evidence that points to the involvement of DynCorp contractors in trafficking of women and girls in Bosnia and Herzegovina, as well as violence against them.[95]
In the late 1990s two employees, Ben Johnston, a former DynCorp aircraft mechanic, and Kathryn Bolkovac, a U.N. International Police Force monitor, independently alleged that DynCorp employees in Bosnia engaged in sex with minors and sold them to each other as slaves.[96][97][98] Johnston and Bolkovac were fired, and Johnston was later placed into protective custody before leaving several days later.[99]
On June 2, 2000, an investigation was launched in the DynCorp hangar at Comanche Base Camp, one of two U.S. bases in Bosnia and Herzegovina, and all DynCorp personnel were detained for questioning.[99] CID spent several weeks investigating and the results appear to support Johnston's allegations.[99] DynCorp had fired five employees for similar illegal activities prior to the charges.[100] Many of the employees accused of sex trafficking were forced to resign under suspicion of illegal activity. As of 2014 no one had been prosecuted.[101]
In 2002 Bolkovac filed a lawsuit in Great Britain against DynCorp for unfair dismissal due to a protected disclosure (whistleblowing), and won.[102] Bolkovac co-authored a book with Cari Lynn titled The Whistleblower: Sex Trafficking, Military Contractors And One Woman's Fight For Justice. In 2010 the film The Whistleblower, starring Rachel Weisz and Vanessa Redgrave, was released.[103][104]
According to The New York Times, the Special Inspector General for Iraq Reconstruction (SIGIR) found that "DynCorp seemed to act almost independently of its reporting officers at the Department of State, billing the United States for millions of dollars of work that were not authorized and beginning other jobs without a go-ahead."[105] The report states that the findings of DynCorp's misconduct on a $188 million job to buy weapons and build quarters for the Iraqi police were serious enough to warrant a fraud inquiry.[105] A U.S. government audit report of October 2007 revealed that $1.3 billion was spent on a contract with DynCorp for training Iraqi police.[106] The auditors stated that the program was mismanaged to such an extent that they were unable to determine how the money was spent.[106]
In February 2007 federal auditors cited DynCorp for wasting millions on projects, including building an unapproved, Olympic-sized swimming pool at the behest of Iraqi police officials.[107] In April 2011 DynCorp agreed to pay $7.7 million to the U.S. government to settle claims that it had inflated claims for construction contracts in Iraq.[108]
On October 11, 2007, a DynCorp security guard in a U.S. State Department convoy killed a taxi driver in Baghdad. According to several witnesses, the taxi did not pose a threat to the convoy's security.[109]
A January 2010 SIGIR report assessed that oversight of DynCorp police training contracts by the Bureau of International Narcotics and Law Enforcement Affairs found that INL exhibited weak oversight of the DynCorp task orders for support of the Iraqi police training program.[110][111][112] It found that INL lacks sufficient resources and controls to adequately manage the task orders with DynCorp. As a result, more than $2.5 billion in U.S. funds were vulnerable to waste and fraud, although SIGIR's Iraq reconstruction inspector Stuart Bowen noted that there was no indication that DynCorp had misspent any of the $2.5 billion.[113][114]
In 2009 DynCorp contractors paid a 15-year-old Afghan Bacha Bazi performer to perform lap dances and entertain them in Kunduz. Several Afghans were later arrested and investigated.[115][116][117] A Wikileaks cable released after the incident stated that the Afghan interior minister at the time, Hanif Atmar, asked the assistant U.S. ambassador to try to "quash" both the story and release of video from the incident.[115][118][119][120] In response to the incident, DynCorp fired four senior managers and established a chief compliance officer position, which focused on ethics, business conduct, related investigations, and regulatory compliance.[116] As of 2014 no DynCorp employee has faced criminal charges.[citation needed]
On July 30, 2010, a riot broke out when an Afghan car and a DynCorp vehicle crashed on a road near Kabul International Airport.[121][122] Although initial reports blamed the company and claimed four Afghans were killed in the accident, Sayed Abdul Ghaffar, the head of the Kabul police criminal investigations division, told The New York Times that the Afghan driver had caused the accident and said only one Afghan died in the wreck.[123]
According to Mozambican media reports, the Mozambican government seized and incinerated the 16-vehicle shipment pending the outcome of investigations into alleged tax evasion and deception by OTT Technologies Mozambique.[124]
DynCorp lobbied the Trump administration intensely to get the Trump administration to rescind a $10 billion contract that the Obama administration made with a rival company to service State Department aircraft.[12
Article - Company-Histories
2020-company-histories-com-dyncorp.pdf / https://www.company-histories.com/DynCorp-Company-History.html
[...]
Private Company ; Incorporated: 1946 as California Eastern Aviation Inc.
Employees: 23,000
Sales: $1.81 billion (2000)
NAIC: 541513 Computer Facilities Management Services; 54169 Other Scientific and Technical Consulting Services; 56121 Facilities Support Services
Company Perspectives: The personal commitment of each DynCorp employee to our core values creates a consistent and exemplary level of service and ethical conduct, making DynCorp one of the most respected companies in the world.
Key Dates:
1946: Pilots returning from World War II form CEA air cargo business.
1951: CEA merges with AIRCAR civil aviation services company.
1961: CEA is renamed Dynalectron Corporation.
1964: Hydrocarbon Research, Inc. is acquired.
1976: Dynalectron restructures and relocates to McLean, Virginia.
1987: Dynalectron becomes DynCorp.
1988: Management buyout takes DynCorp private following a hostile takeover attempt from Miami financier Victor Posner.
1994: Annual revenues reach $1 billion as company focuses on IT.
2001: Growth in local and state government services helps push backlog to $6 billion.
Company History:
DynCorp, one of the largest employee-owned firms in the United States, has not been a very high-profile company, yet its behind-the-scenes logistics support operations for the Defense Department are extensive. The company provides ground support for Air Force One, maintains the State Department's telephones, and contracts coca (cocaine) eradication missions in Colombia. The U.S. Department of Defense accounts for a little less than half of DynCorp's total revenues. Some of DynCorp's earliest customers, such as the White Sands Missile Range in New Mexico, have remained loyal to the company for more than 50 years. CEO Paul Lombardi expects continued growth, most especially in providing services to state and local governments, due to the lack of a dominant player in that highly fragmented market.
War Surplus Origins
California Eastern Airways, Inc. (CEA) was not the only air cargo line started by military pilots returning to the United States after World War II. Nor was it the most enduring, as a purely civil transport enterprise. CEA would diversify, however, into one of the country's most important defense contractors. Within a year of its founding in 1946, California Eastern was serving both coasts. The company participated in the U.S. military airlift during the Korean War.
How To Detect a Forgery
The purchase of Land-Air, Inc. in the early 1950s brought CEA into a new field of technical services. Land-Air operated missile ranges and modified aircraft for government agencies. In 1951, CEA's total revenues exceeded $6 million. The next year, the company merged with Air Carrier Service Corporation (AIRCAR), which sold commercial aircraft and spare parts to foreign airlines and governments. AIRCAR left the civil aviation business in 1957, focusing instead on defense and aerospace engineering, commercial electronics, and data management.
Dynalectron in 1961
By 1961, CEA needed a new name to more accurately reflect its diversified empire. The name Dynalectron Corporation was culled from 5,000 employee suggestions.
Dynalectron diversified into the energy services business via the 1964 acquisition of Hydrocarbon Research, Inc. At the end of the decade, the company instituted a plan to expand the commercial aviation services business while entering the specialty construction contracting field.
In 1976, Dynalectron established a headquarters in McLean, Virginia. The company restructured into four main operating groups: Specialty Contracting, Energy, Government Services, and Aviation Services. Dynalectron had made 19 acquisitions in its 30 years.
CEO Charles G. Gulledge reported that Dynalectron ended 1976 with stockholders' equity of $30 million, assets of $88 million, and a backlog of $250 million, all record numbers. Annual sales were a bit less than $300 million in the mid-1970s. The company posted a $1.5 million loss in 1978 due to write-downs on wastewater treatment plants being built by a subsidiary, AFB Contractors Inc. After this loss, the company ended its diversification program, focusing instead on cost-cutting to reduce debt.
One of the company's smaller subsidiaries provided the prospect of continued growth. Since 1963, the company's Hydrocarbon Research (HRI) unit had been developing a process to liquefy coal to produce a fuel for boilers. This work attracted national attention due to the Arab oil embargos of the 1970s and the public debate over energy policy. By the early 1980s, Texaco Inc., Ruhrkohle of West Germany, and C. Itoh & Co. of Japan had agreed to market Dynalectron's proprietary H-Oil process.
Other projects in which Dynalectron was involved included training helicopter pilots and technicians in Saudi Arabia. By 1981, Dynalectron had acquired another 14 companies, mostly in the aviation services field, which now encompassed cargo handling and aviation fueling. The company also had established a computer component repair business. Two public offerings of stock helped provide the capital for the purchases.
Revenues were $640 million in 1985; a third of the company's business was coming from the Defense Department. Revenues grew to $749 million in 1986.
In April 1987, Dynalectron agreed to pay $1.5 million to settle two bid-rigging cases related to its largest subsidiary, Dynalectric Co. A spokesman maintained the settlement was more a matter of financial expediency than an admission of any wrongdoing.
New Name, New Owners in the Late 1980s
Dynalectron adopted the DynCorp name in 1987. The company had become North America's fourth largest electrical contractor; its defense contracting and aviation services businesses were also considerable.
In early 1988, a management buyout took DynCorp private again and established an Employee Stock Ownership Plan (ESOP) following a hostile takeover attempt from Miami financier Victor Posner. An investment group led by DynCorp Chairman Jorge E. Carnicero paid $246 million for the company.
A restructuring grouped the company, which had 16,000 employees, into Government Services and Commercial Aviation Services divisions. DynCorp instituted a strategy to make it less dependent on defense work: by 1995, according to the plan, 40 percent of its contracts would not be defense-related, the professional services business would grow, and the company would achieve annual sales of $1.2 billion.
DynCorp aggressively pursued the emerging information technology (IT) business in the early 1990s, buying ten companies between 1990 and 1993 (Bell Technical Operations; Program Resources, Inc.; Meridian Corporation; Viar & Company; Aerotherm Corporation; Becon Services; B-K Dynamics; Science Management Corporation's Information Systems Division; Technology Applications, Inc.; and Network Management Inc.). A new group, Applied Sciences, was formed to encompass them in 1990.
Another business unit, Information & Engineering Technology (I&ET), was formed in 1994, charged with capturing large IT service contracts. In October of that year, DynCorp bought CBIS Federal Inc., renaming it DynTel Corporation.
DynCorp revenues reached the $1 billion mark in 1994. The company had posted losses, however, for the previous five years. Profits returned as revenues slipped to $909 million in 1995; new contacts worth $1.7 billion pushed the company's backlog toward the $3 billion mark. DynCorp reported receiving six merger proposals after posting the results.
In August 1995, DynAir, the commercial aviation unit, was sold in two pieces to Sabreliner Corp. of St. Louis and London's Alpha Airports Group PLC. DynAir had accounted for 5,000 of DynCorp's 23,000 employees.
Focus on IT in the 1990s
Under CEO [Daniel Richard Bannister (born 1930)], DynCorp was dedicating itself to its role as one of the fastest growing providers of IT services in the Washington, D.C. area. Still, these services were accounting for less than 20 percent of the company's total revenues. Most of the company's work came from the low-tech "roads and commodes" end of the business.
Dyncorp posted record revenue and backlog figures in 1996, giving ample reason to celebrate during the company's 50th anniversary year. At the beginning of 1997, another banner year, [Daniel Richard Bannister (born 1930)] became company chairman while Paul V. Lombardi assumed the titles of president and CEO. Lombardi had joined the firm five years earlier as head of its Governmental Services Group.
Some new businesses were added during the mid-1990s. Data Management Design, Inc., a provider of workflow solutions, was acquired in 1996. DynSolutions, added in 1997, developed information management systems for commercial users. DynCorp Management Resources, also added in 1997, focused on state and local government services.
In February 1998, DynCorp bought FMAS, a health information systems provider. Later in the year, DynCorp entered a unique public-private partnership to operate the Virginia Space Flight Center.
GTE Information Systems was acquired in late 1999 and renamed DynCorp Information Systems. It would soon install a unique, completely wireless computing infrastructure at Virginia Union University. The acquisition was one of DynCorp's more troublesome; the company eventually sued GTE for misinformation regarding the profitability of a phone system for prisoners.
During 1999, DynCorp moved to a new headquarters building in Reston, Virginia. The company's impressive financials continued to grow throughout the late 1990s and into 2000, in large part due to an industry-leading 66 percent contract win rate. Backlog was $6 billion in the spring of 2001.
DynCorp organized its healthcare services business under the new AdvanceMed LLC subsidiary in January 2001. Reve- nues were about $75 million a year; the unit specialized in predictive outcome analysis for large insurers and hospitals.
Lombardi was bullish on the prospect of future growth in services for state and local governments, due to its huge size and lack of dominant players. DynCorp's Management Resources unit had grown 40 percent in 1998 alone. In late 2001, DynCorp planned to merge this business with TekInsight, a public IT company, holding a 40 percent ownership in the new company to be called DynTech.
The September 11 terrorist attacks on the World Trade Center and the Pentagon had implications for a variety of DynCorp's lines of business. The company operated INS stations along the Mexican border. According to the Washington Business Journal, many defense agencies consulted with the firm regarding contingency plans and the government asked DynCorp to make its emergency telephone system completely wireless. [DynPort Vaccine Company, LLC], a joint venture with Porton International Ltd., researched biological weapons.
Principal Subsidiaries: AdvanceMed LLC; Dyn Marine Services, Inc.; DynCorp Information Systems LLC; DynCorp Management Resources, Inc.; DynCorp Systems & Solutions, Inc.; DynCorp Technical Services; DynCorp TechServ; DynSpace Corporation; DynTel Corporation.
Principal Divisions: DynCorp Information and Enterprise Technology; DynCorp Information Systems; DynCorp Technical Services.
Principal Competitors: Electronic Data Systems Corporation; Lockheed Martin Corporation; PRC Inc.; Raytheon Company; Science Applications International Corporation; TRW Inc.
Further Reading:
- Celarier, Michelle, "Catch-23: Private Industries Bidding Against Government Entities for Pentagon Contracts Often Face Obstacles and Lose Money," CFO: The Magazine for Senior Financial Executives, June 1998, pp. 50-58.
- Chandrasekaran, Rajiv, "The Bloom Is on DynCorp," Washington Post, August 5, 1996, p. F9.
- Day, Kathleen, "DynCorp Discussing the Sale of a Division; Reston Firm's Aviation Services Unit on Block," Washington Post, August 8, 1995, p. D1.
- ------, "DynCorp Retools with a Focus on Information Technology," Washington Post, August 14, 1995, p. F8.
- ------, "A Welcome from the Music Man," Washington Post, August 14, 1995, p. F8.
- "Dynalectron: Determined That Synfuels Will Fuel the Company's Growth," Business Week, June 28, 1982, p. 130.
- Haggerty, Maryann, "Engineering a Career in Energy Programs at DynCorp," Washington Post, June 14, 1993, p. F11.
- Isikoff, Michael, "Dynalectric Indicted on Bid Rigging Charge; McLean Firm, Former President Agree to Plead Guilty, Forgo Appeal of Earlier Conviction," Washington Post, April 24, 1987, p. F1.
- ------, "Dynalectron Officer Indicted for Bid Rigging," Washington Post, September 20, 1986, p. D1.
- ------, "Dynalectron Puts Official on Paid Leave," Washington Post, October 30, 1986, p. E1.
- Jones, William H., "Dynalectron Corp. Posts 'Large, Unexpected Losses,'" Washington Post, March 13, 1979, p. D10.
- ------, "Dynalectron Has an Oil Answer," Washington Post, July 12, 1978, p. E1.
- ------, "Dynalectron May Be Part of Coal Conversion Plan," Washington Post, May 17, 1979, p. C1.
- Kady, Martin, II, "DynCorp Rallies the Troops to Keep Up with the Demand," Washington Business Journal, October 26, 2001.
- Koklanaris, Maria, "DynCorp Acquires Local Firm in Bid to Diversify; Company Seeks to Cut Pentagon Dependence," Washington Post, May 6, 1991, p. F6.
- Lemke, Tim, "DynCorp Could Gain More Business from Defense," Washington Times, September 24, 2001, p. D5.
- McCance, McGregor, "Initiative Helps Keep Computing Systems Updated in Virginia," Richmond Times-Dispatch, July 21, 2001.
- McCarthy, Ellen, "Calif. Firm Confirms Plan to Buy DynCorp Unit," Washington Post, October 5, 2001.
- Mintz, John, "FBI Probes DynCorp on Fort Belvoir Work," Washington Post, January 11, 1994, p. D2.
- "A New Push for Coal-to-Oil Technology," Business Week, November 7, 1977.
- Southerland, Daniel, "DynCorp Unit Picked to Run U.S. Oil Reserve," Washington Post, November 24, 1992, p. D1.
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- Source: International Directory of Company Histories, Vol. 45. St. James Press, 2002.