Pentagon audit says Boeing overcharged Air Force for C-17 parts

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Pentagon audit says Boeing overcharged Air Force for C-17 parts
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Boeing, which services C-17s at its maintenance base at Port San Antonio, disputed the findings.

Boeing Co. overcharged the Air Force nearly $1 million for spare parts on C-17 cargo planes, including an 8,000% markup for simple lavatory soap dispensers, according to a new report from the Pentagon ’s inspector general. The Defense Department ’s auditor reviewed prices paid for 46 spare parts on the C-17 from 2018 to 2022 and found that 12 were overpriced and nine seemed reasonably priced. It couldn’t determine the fairness of prices on the other 25 items.

Boeing factory workers reject contract offer with no end in sight for crippling six-week strike Boeing, which services C-17s at its base at Port San Antonio, disputed the findings. “We are reviewing the report, which appears to be based on an inapt comparison of the prices paid for parts that meet aircraft and contract specifications and designs versus basic commercial items that would not be qualified or approved for use on the C-17,” the company said in a statement.

Boeing reports $6 billion quarterly loss as striking workers vote whether to accept contract offer The company already was trying to recover from financial and reputational damage caused by two deadly crashes in 2018 and 2019 of the 737 Max. In July, Boeing agreed to plead guilty to a felony count of conspiracy to defraud the government for misleading regulators who approved pilot training rules for the Max. That plea deal is pending before a federal judge in Texas.

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