Boeing has returned $1.6 million so far to the federal government for overcharging the U.S. Army for helicopter parts.

 

The refund was initiated by an audit from the inspector general of the Department of Defense, which uncovered extraordinary markups on Boeing’s parts.

 

Among the most outrageous examples: the defense contractor charged the Army $644.75 for a small, plastic spur gear that cost another Pentagon agency $12.51. It also billed the service $1,678.61 for a dime-sized, plastic “ramp gate roller assembly” that costs $7.71. Both parts are installed on the CH-47 Chinook helicopter.

 

The audit found that the Army Aviation and Missile Life Cycle Management Command (AMCOM) paid Boeing $23 million for 18 “high-dollar parts” that should have cost only $10 million.

-Noel Brinkerhoff, David Wallechinsky

 

$645 for $12.51 Spare Part? Boeing Gives Army Refund (by Tony Capaccio, Bloomberg News)

Excess Inventory and Contract Pricing Problems Jeopardize the Army Contract with Boeing to Support the Corpus Christi Army Depot (Department of Defense, Inspector General) (pdf)