Pentagon seeks $14 million refund for Boeing overcharges
Jun 19, 2013, 10:23 AM | Updated: 11:01 am
An audit found that Boeing, the nation's second largest defense contractor, overcharged the aviation unit of the DLA $13.7 million on 1,469 delivery orders under a 2009 basic ordering agreement. (AP Photo/File)
(AP Photo/File)
The Pentagon is seeking refunds from Boeing, claiming the defense contractor overcharged almost $14 million for spare parts.
An audit reveals Boeing overcharged the Pentagon on parts for bombers, tankers, gunships and other defense systems.
reports the Defense Logistics Agency, the Pentagon’s purchasing agency, overpaid about $1.3 million for 573 landing gear parts that should have cost $10 each.
The audit by the Pentagon’s Inspector General concluded that the overcharges resulted from poor oversight and the failure of the Defense Logistics Agency to negotiate good deals as well as Boeing’s failure to pass along savings realized from its subcontractors.
A statement from Ellen Buhr, a spokeswoman for Boeing’s Global Services and Support unit, stated, “We are working with DLA to review the official report and to understand the issues identified.”
The audit found that Boeing, the nation’s second largest defense contractor, overcharged the aviation unit of the DLA $13.7 million on 1,469 delivery orders under a 2009 basic ordering agreement.
