A report from a Pentagon watchdog on Tuesday, Oct. 29, said Boeing overcharged the U.S. Air Force for a dozen spare parts for C-17 transport planes. That included marking up soap dispensers by nearly 8,000% for the aircraft.
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The U.S. Department of Defense Office of the Inspector General’s report shows that the U.S. Air Force overpaid nearly $1 million for various items, including nearly $150,000 for an unspecified number of soap dispensers for the planes from Boeing.
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The watchdog warned that continued overpayments for spare parts could reduce the number of parts Boeing is able to purchase under the contract that runs through 2031 and impact C-17 readiness worldwide.
The U.S. military currently has more than 200 C-17s to carry cargo for military operations and humanitarian missions.
Boeing responded by saying the findings in the report rely on improper comparisons and fail to account for prices of parts specifically designed for military use.
The inspector general acknowledged that it could not find a fair price for the $22 million in spare parts the Air Force bought from Boeing because there is no historical database for prices for comparison.
[JACK AYLMER]
A PENTAGON WATCHDOG SAYS BOEING OVERCHARGED THE U-S AIR FORCE FOR A DOZEN SPARE PARTS FOR C-17 PLANES, INCLUDING MARKING UP SOAP DISPENSERS BY NEARLY EIGHT THOUSAND PERCENT.
THE DEPARTMENT OF DEFENSE OFFICE OF INSPECTOR GENERAL’S REPORT TUESDAY SHOWS THE AIR FORCE OVERPAID NEARLY ONE-MILLION DOLLARS FOR VARIOUS ITEMS, INCLUDING NEARLY 150-THOUSAND DOLLARS FOR AN UNSPECIFIED NUMBER OF SOAP DISPENSERS FOR THE PLANES FROM BOEING.
THE WATCHDOG WARNS CONTINUED OVERPAYMENTS COULD REDUCE THE NUMBER OF PARTS BOEING CAN PURCHASE UNDER THE CONTRACT AND IMPACT C-17 READINESS WORLDWIDE.
THE U-S MILITARY CURRENTLY HAS MORE THAN 200 C-17S TO CARRY CARGO FOR MILITARY OPERATIONS AND HUMANITARIAN MISSIONS.
BOEING SAYS THE FINDINGS RELY ON IMPROPER COMPARISONS AND FAIL TO ACCOUNT FOR PRICES OF PARTS SPECIFICALLY DESIGNED FOR MILITARY USE.
THE INSPECTOR GENERAL ACKNOWLEDGED IT COULDN’T FIND A FAIR PRICE FOR THE 22 MILLION DOLLARS IN SPARE PARTS THE AIR FORCE BOUGHT FROM BOEING BECAUSE THERE IS NO HISTORICAL DATABASE OF PRICES FOR COMPARISON.
FOR MORE ON THIS STORY– DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT SAN DOT COM.
FOR STRAIGHT ARROW NEWS– I’M JACK AYLMER.
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