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Air Force overpaid nearly 8,000% for soap dispensers on military aircraft, watchdog report says
Key Excerpts from Article on Website of CBS News
Posted: November 6th, 2024
https://www.cbsnews.com/news/air-force-overpaid-8000-percent...
The Air Force overpaid for soap dispensers used in the bathrooms of C-17 military aircraft by 7,943% — or more than 80 times the price of similar commercially available dispensers — according to a Defense Department inspector general report released Tuesday. The dispensers were one of about a dozen spare parts for which Boeing overcharged the Air Force, according to the report, resulting in nearly $1 million in additional and unnecessary costs. The costs of the soap dispenser from Boeing, the similar soap dispenser and the number of dispensers purchased by the Air Force were redacted in the report, but in total, the Air Force overpaid $149,072 for the soap dispensers. An anonymous tip about the dispensers launched the inspector general's audit into the spare parts. "The Air Force needs to establish and implement more effective internal controls to help prevent overpaying for spare parts for the remainder of this contract, which continues through 2031," Defense Department Inspector General Robert Storch said in a statement. Boeing has a contract with the Air Force that lets Boeing purchase needed spare parts for the C17, and the Air Force reimburses Boeing for the spare parts purchased, according to the report. "Significant overpayments for spare parts may reduce the number of spare parts that Boeing can purchase on the contract, potentially reducing C-17 readiness worldwide," Storch said.
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