Pentagon audit says Boeing cleaned up on Air Force parts, including soap dispensers marked up 8,000%

WASHINGTON -- WASHINGTON (AP) — Boeing overcharged nan Air Force astir $1 cardinal for spare parts connected C-17 cargo planes, including an 8,000% markup for elemental lavatory soap dispensers, according to nan Pentagon’s inspector general.

The Defense Department's auditor reviewed prices paid for 46 spare parts connected nan C-17 from 2018 to 2022 and recovered that 12 were overpriced and 9 seemed reasonably priced. It couldn't find nan fairness of prices connected nan different 25 items.

The Office of nan Inspector General said it reviewed nan soap dispenser prices aft getting a hotline tip.

Boeing disputed nan findings.

“We are reviewing nan report, which appears to beryllium based connected an inapt comparison of nan prices paid for parts that meet craft and statement specifications and designs versus basal commercialized items that would not beryllium qualified aliases approved for usage connected nan C-17," Boeing said successful a statement. “We will proceed to activity pinch nan OIG and nan U.S. Air Force to supply a elaborate written consequence to nan study successful nan coming days.”

The C-17 Globemaster is 1 of nan military's largest cargo aircraft. It tin transportation aggregate subject vehicles, ample pallets of humanitarian supplies or, successful utmost circumstances, hundreds of people. The Air Force flew C-17s nonstop for 2 weeks during nan hectic August 2021 withdrawal from Afghanistan, evacuating much than 120,000 civilians fleeing nan Taliban.

Since 2011, nan U.S. authorities has awarded Boeing much than $30 cardinal successful contracts to acquisition needed spare parts for nan C-17 and beryllium reimbursed by nan Air Force.

Boeing is still trying to retrieve from financial and reputational harm caused by two deadly crashes successful 2018 and 2019 of its bestselling hose jet, nan 737 Max.

This has been a particularly volatile year for nan aerospace giant. It came nether renewed scrutiny and national investigations aft a doorway plug flew disconnected a 737 Max during an Alaska Airlines flight successful January. Federal regulators constricted Boeing accumulation of nan plane.

In July, Boeing agreed to plead guilty to a felony count of conspiracy to defraud nan authorities for misleading regulators who approved aviator training rules for nan Max. That plea woody is pending earlier a national judge successful Texas.

Boeing is connected its 3rd main executive successful 5 years, having hired an outsider who joined nan institution successful August. Last week, Boeing reported a third-quarter nonaccomplishment of much than $6 cardinal because of charges for respective commercial, defense and abstraction programs.

A strike by 33,000 national machinists is now 7 weeks aged and has crippled accumulation of 737s, 777s and 767 freighters, cutting disconnected much-need cash. New CEO Kelly Ortberg has announced astir 17,000 layoffs, and nan institution will rumor caller banal to raise up to $19 cardinal to statement up its debt-laden equilibrium sheet.

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Koenig reported from Dallas.