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DynCorp Ordered to Pay for Discrimination

A federal court jury has ordered DynCorp International to pay more than $15 million in damages after finding that the company discriminated against a minority-owned subcontractor.

Worldwide Network Services LLC of Washington said DynCorp’s decision not to renew its subcontracts in Iraq and Afghanistan was part of a pattern of racial discrimination against the African American-owned firm.

Worldwide co-owner Reginald Bailey Sr. told the Washington Post his telecommunications company nearly went under after DynCorp withdrew the contract and a successor subcontractor hired many of Worldwide’s employees.

The jury in Alexandria, VA, awarded Worldwide $5 million plus interest in compensatory damages, plus $10 million in punitive damages. In a separate ruling, Judge Gerald Lee ordered DynCorp to pay an additional $2 million.

Worldwide was ordered to pay DynCorp $175,000 as the result of a counterclaim.

Dyncorp said it will appeal. “We are extremely disappointed and strongly disagree with the verdict in this contractual dispute,” the company said in a statement. “DynCorp International does not engage in or tolerate discrimination in any form and rigorously follows the highest standards of business ethics. We are proud of our ongoing, successful work with hundreds of small, minority and disadvantaged businesses and in many different cultures around the world.”

DynCorp said it did not renew Worldwide’s subcontract because of poor performance.

In court filings, Worldwide said its revenue grew from $500,000 to $50 million annually after it became a Dyncorp subcontractor in 2003. The suit alleged that one DynCorp executive told Worldwide employees they had been hired only because they were black, and another DynCorp executive used a racial slur in referring to a Worldwide manager. The subcontractor charged that some of its employees were barred from meetings and denied identity cards so they could not do their work.


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