US Air Force wildly overpaid Boeing by almost 8,000% for C-17 aircraft bathroom soap dispensers, Pentagon watchdog finds

• The US Air Force majorly overpaid for C-17 spare parts, including bath soap dispensers, per a Pentagon watchdog.
• The dispensers were 80 times much costly than nan commercially disposable alternative.
• The audit of C-17 portion purchases was done successful consequence to a DoD Hotline allegation.

The US Air Force overpaid for spare parts for a C-17 subject carrier aircraft manufactured by Boeing, according to a caller watchdog report. In 1 example, an audit found, nan work paid much than 80 times nan regular commercialized worth for bath soap dispensers.

The audit, which elaborate costs issues pinch a assortment of C-17 spare parts, blamed nan overpayment connected a deficiency of oversight by nan Air Force.

On Monday, nan Department of Defense Office of Inspector General released accusation related to an audit connected whether nan Air Force purchased C-17 spare parts "at adjacent and reasonable prices." The audit was initiated successful consequence to a DoD Hotline allegation.

The audit recovered that nan Air Force "overpaid astir $1 cardinal for a twelve different types of spare parts" connected contracts, nan agency said, including bath soap dispensers "where nan Air Force paid much than 80 times nan commercially disposable costs of a 7,943-% markup."

Across nan board, nan agency said nan work grounded to consistently pay reasonable prices for astir 26% of spare parts reviewed, weighted astatine $4.3 million.

But nan OIG was incapable to efficaciously reappraisal complete half of nan full spare parts — estimated astatine much than $22 cardinal successful worth — "because nan Air Force did not support humanities costs data, and nan Defense Contract Management Agency Item Group was incapable to get supplier quotes aliases place commercially akin parts," nan agency said.

The OIG attributed nan overpayment problem to nan Air Force's nonaccomplishment to sufficiently validate meticulous information for statement negotiation, place value increases while executing contracts, and reappraisal invoices to find fair and reasonable earlier paying.

"We are reviewing nan report, which appears to beryllium based connected an inapt comparison of nan prices paid for parts that meet subject specifications and designs versus basal commercialized items that would not beryllium qualified aliases approved for usage connected nan C-17," Boeing spokeswoman Deborah VanNierop told Bloomberg, which first reported nan overpayments identified by nan OIG.

"We will proceed to activity pinch nan OIG and nan US Air Force to supply a elaborate written consequence to nan study successful nan coming days," she said.

Per Inspector General Robert P. Storch, nan Air Force's issues could person an effect connected C-17 readiness.

"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," he said, adding that "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."

The C-17 Globemaster III is simply a ample versatile craft designed to transport troops and instrumentality crossed a assortment of distances. It's nan Air Force's superior strategical assistance aircraft. It has besides go a central craft successful removal and humanitarian efforts, among different missions.