‘War Dogs’ Firm Is Owed Money for Unfair Iraq Terminations

AEY Inc., the weapons supplier made famous by the 2016 movie “War Dogs” for its defense contract fraud, must be compensated for unfair terminations of several contracts to supply Iraqi military forces with guns and ammunition, the Armed Services Board of Contract Appeals ruled.

Default terminations of two contracts to supply machine guns for lateness were improper because AEY still had time to deliver when the contracting officer executed the termination, and default terminations of ammunition and weapons accessories contracts were improper because the contracting officer waived delivery dates, Administrative Judge Lynda T. O’Sullivan said.

Those terminations are converted into ...