Boeing Faces Scrutiny for Alleged Overcharging on Air Force Contracts
The Pentagon watchdog reports Boeing charged nearly 8,000% above market rate for C-17 soap dispensers, prompting calls for stricter controls.
- The U.S. Air Force overpaid $149,072 for soap dispensers on C-17 aircraft, according to a Pentagon inspector general report.
- The report claims Boeing marked up the price of these dispensers by 7,943%, significantly above commercially available alternatives.
- The audit found the Air Force overpaid nearly $1 million for various spare parts due to inadequate oversight and lack of historical cost data.
- Boeing argues that the report compares military-grade parts to basic commercial items, and plans to respond formally soon.
- The inspector general warns that such overpayments could impact C-17 readiness, urging the Air Force to improve contract management through 2031.