A Pentagon audit revealed that Boeing overcharged the Air Force by nearly $1 million for spare parts on C-17 cargo planes, with some items marked up by as much as 8,000%.
The audit reviewed prices paid for 46 spare parts, finding that 12 were overpriced and nine seemed reasonably priced, while fairness of prices on the other 25 items could not be determined.
Driving the news: The investigation was prompted by a hotline tip regarding the exorbitant prices of simple lavatory soap dispensers for the C-17.
The other side: Boeing disputed the findings, stating that the report contained an inappropriate comparison of prices paid for parts meeting specifications and designs versus basic commercial items not qualified or approved for use on the C-17. Boeing intends to provide a detailed written response to the report.
Go deeper: The C-17 Globemaster is a crucial military cargo aircraft, used for various purposes including the evacuation of civilians during the 2021 Afghanistan withdrawal.
- Boeing has been awarded over $30 billion in contracts by the U.S. government for purchasing spare parts for the C-17 and being reimbursed by the Air Force.
