Boeing Co. (BA) charged the U.S. Army for new helicopter parts while installing used ones, the Pentagon’s inspector general said, in the latest of four audits since 2008 that found excessive or unjustified payments on Boeing defense contracts.
“Boeing significantly overstated estimates” of new components needed for CH-47F Chinook helicopters and “primarily installed used parts instead” under a $4.4 billion contract awarded in 2008, according to the report, labeled “For Official Use Only” and obtained by Bloomberg News
While used parts were allowed in some circumstances, the July 16 report found that the company overcharged the U.S. Army by as much as $16.6 million by exaggerating how many new ones were required while installing refurbished equipment salvaged from old aircraft. The report also faults defense agencies and military services for lax negotiations and contract management.
The toilet bucket saga all over again?