Pentagon Watchdog Reveals Boeing's Overpricing for Air Force Spare Parts

A Pentagon watchdog report accuses Boeing of substantially overcharging the U.S. Air Force for C-17 spare parts. The report highlights a 7,943% markup on soap dispensers. Boeing argues the parts are modified to military specs. The lack of price databases complicates the determination of fair pricing.

A Pentagon watchdog has issued a report accusing Boeing of significantly overcharging the U.S. Air Force for spare parts for C-17 transport planes, with a marked-up price on soap dispensers as high as 7,943%.

The report by the Department of Defense Office of Inspector General disclosed that the Air Force overpaid nearly $1 million for a dozen spare parts, including $149,072 for an undisclosed number of lavatory soap dispensers. Inspector General Robert Storch emphasized the need for more effective internal controls to prevent excess payments for spare parts through 2031.

Boeing has responded by reviewing the report, which they suggest compares military-specified parts with basic commercial items, and plans to issue a detailed response. The Inspector General noted difficulties in determining fair pricing for certain parts due to missing historical data and supplier information.

(With inputs from agencies.)