Thursday, 31 Oct 2024

Boeing hikes soap dispenser prices by 8,000%, gouges Air Force with $1M overcharge on C-17 spare parts

Boeing overcharged the Air Force for simple spare parts on C-17 aircrafts by $1 million from a period of 2018 to 2022, according to Pentagon Inspector General Robert Storch.


Boeing hikes soap dispenser prices by 8,000%, gouges Air Force with $1M overcharge on C-17 spare parts
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Boeing overcharged the Air Force for simple spare parts on C-17 aircraft by $1 million over a four-year period, according to the Pentagon.

The defense giant marked up the cost of soap dispensers by 8,000%, putting taxpayers on the hook for such items that cost 80 times more than market value. 

While the cost that Boeing charged per dispenser was redacted from a new audit released this week, in total, the Air Force overpaid for the dispensers by $149,072 from 2018 to 2022, according to Pentagon Inspector General Robert Storch.

"The Air Force needs to establish and implement more effective internal controls to help prevent overpaying for spare parts for the remainder of this contract, which continues through 2031," said Storch.

"Significant overpayments for spare parts may reduce the number of spare parts that Boeing can purchase on the contract, potentially reducing C-17 readiness worldwide." 

PENTAGON LACKS COUNTER-DRONE PROCEDURE LEADING TO INCURSIONS LIKE AT LANGLEY, EXPERTS SAY

An anonymous tip about the exorbitant soap dispenser prices prompted the inspector general's audit into spare parts. 

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