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

Boeing overcharged nan Air Force for elemental spare parts connected C-17 craft by $1 cardinal complete a four-year period, according to nan Pentagon.

The defense elephantine marked up nan costs of soap dispensers by 8,000%, putting taxpayers connected nan hook for specified items that costs 80 times much than marketplace value. 

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

"The Air Force needs to found and instrumentality much effective soul controls to thief forestall overpaying for spare parts for nan remainder of this contract, which continues done 2031," said Storch.

"Significant overpayments for spare parts whitethorn trim nan number of spare parts that Boeing tin acquisition connected nan contract, perchance reducing C-17 readiness worldwide." 

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Crew members of C-17 carrier craft of 145th Airlift Wing of nan North Carolina Air National Guard hold to meet Vice President Kamala Harris, successful nan aftermath of Hurricane Helene successful Charlotte, North Carolina, connected Oct. 5, 2024.

An anonymous extremity astir nan exorbitant soap dispenser prices prompted nan inspector general’s audit into spare parts. 

The IG recovered that nan Air Force did not salary "fair and reasonable" prices for astir 26% of nan spare parts reviewed, astir $4.3 cardinal worthy of equipment. For different 54% of nan spare parts, weighted astatine $22 million, nan IG was not capable to find whether nan Air Force paid adjacent prices: the work branch did not support humanities information connected pricing and they were incapable to get supplier quotes for akin products. 

The IG recovered nan Air Force grounded to validate nan accuracy of information successful statement negotiations for spare parts, reappraisal value increases during statement execution, and reappraisal invoices to find whether prices were "fair and reasonable" earlier paying them. 

Boeing said successful a connection it was reviewing nan study but cautioned that it appeared to comparison prices for nan parts that met craft standards to "basic commercialized items" that wouldn't meet nan qualifications for military aircraft.

"We are reviewing nan report, which appears to beryllium based connected an inapt comparison of nan prices paid for parts that meet craft and statement specifications and designs versus basal commercialized items that would not beryllium qualified aliases approved for usage connected nan C-17. We will proceed to activity pinch nan OIG and nan U.S. Air Force to supply a elaborate written consequence to nan study successful nan coming days."

UAE Air Force C-17 Globemaster III subject carrier craft drops assistance packages connected nan bluish Gaza Strip connected April 23, 2024, amid nan ongoing conflict successful nan Palestinian territory betwixt Israel and nan militant group Hamas.

Boeing mill workers stitchery connected a picket statement during nan first time of a onslaught adjacent nan entranceway of a accumulation installation successful Renton, Washington. (Reuters)

Around 220 C-17s are successful usage by the Air Force, Air National Guard and nan Air Force Reserve Command. 

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The Air Force calls nan Boeing Globemaster C-17s "the astir elastic cargo aircraft" successful its fleet, tin of carrying group and cargo crossed a assortment of distances. It’s go nan superior craft utilized for removal and humanitarian missions. 

The Pentagon’s sprawling fund collapsed $900 cardinal past year, making overcharges by defense contractors a changeless headache for soul watchdogs. 

Earlier this month, Raytheon agreed to salary $1 cardinal successful a colony pinch nan Department of Justice (DOJ) for defrauding nan Defense Department and paying bribes to a authorities charismatic successful Qatar to get business successful nan country.

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The institution was accused of inflating its costs by $111 cardinal connected rocket systems and cognition of a radar surveillance strategy it sold to nan Pentagon. Raytheon allegedly lied astir nan costs of building 3 Patriot rocket batteries, pinch nan Army agreeing to a $619 cardinal contract.