Safe Mode: On
Leaked Audit: Boeing Overcharged Army Up to 177,000 Percent on Helicopter Spare Parts

$644.75 for a small gear smaller than a dime that sells for $12.51: more than a 5,100 percent increase in price. $1,678.61 for another tiny part, also smaller than a dime, that could have been bought within DoD for $7.71: a 21,000 percent increase. $71.01 for a straight, thin metal pin that DoD had on hand, unused by the tens of thousands, for 4 cents: an increase of over 177,000 percent.

Taxpayers were massively overcharged in dozens of transactions between the Army and Boeing for helicopter spare parts, according to a full, unredacted Department of Defense Office of Inspector General (DoD OIG) audit that POGO is making public for the first time. The overcharges range from 33.3 percent to 177,475 percent for mundane parts, resulting in millions of dollars in overspending.
The May 3, 2011, unclassified “For Official Use Only” report is 142 pages. Prior to POGO’s publication of the

- -

Added: Jul-4-2011 Occurred On: Jun-28-2011
By: absu69
In:
Other
Tags: contract, DoD, defence, bs, overcharged, mark, up
Views: 6561 | Comments: 28 | Votes: 2 | Favorites: 1 | Shared: 0 | Updates: 0 | Times used in channels: 1
You need to be registered in order to add comments! Register HERE
Sort by: Newest first | Oldest first | Highest score first
Liveleak opposes racial slurs - if you do spot comments that fall into this category, please report them for us to review.
  • Comment of user 'Eva_Destruction' has been deleted by author (after account deletion)!
  • Comment of user 'Gusr' has been deleted by author (after account deletion)!
    • Comment of user 'Eva_Destruction' has been deleted by author (after account deletion)!
    • Comment of user 'Gusr' has been deleted by author (after account deletion)!
  • To be sure, many contractors have ripped off the government.

    However, there's a caveat to this and that is that the DoD demands that parts meet MILSPEC requirements. You can't just say that you could buy the equivalent part at Walmart for a dollar because airframe parts and electronics have to meet many torque, wear-n-tear, heat/cold, etc. tolerances that an off-the-shelf part doesn't.

    Plus, every contract has DoD personnel who monitor it to ensure the contract is being adhered to. If you More..

    Posted Jul-4-2011 By 

    (3) | Report

    • @captdan Theres a lot more covered in this article than just simple mark ups on items. It would take a whole Yoursay to do and i almost regret putting this article up because it shows people a lot of information and scares the shit out of them. The fact is theres little they can actually do about the process. I should have at least simplified the article.

      Posted Jul-4-2011 By 

      (0) | Report

    • @absu69 you should see the costs with the nuclear subs and their maintenance, most of the parts have to be subsafe and that can add up real quick.

      Posted Jul-4-2011 By 

      (0) | Report

    • @captdan The other issue with MIL specs is that when processes or components are discontinued or improved, the contractor HAS to comply with the MIL spec, meaning that sometimes they will have to re-tool a line or maintain expensive equipment to do it instead of using newer/current processes to do it. But that would involve re-certification of the part by the government. That government employee will not want to put his signature on the re-cert so they keep asking for equipment built using pro More..

      Posted Jul-4-2011 By 

      (0) | Report

  • Comment of user 'etherealspectre' has been deleted by author (after account deletion)!
  • Comment of user 'MrWhatever' has been deleted by author (after account deletion)!
  • Comment of user 'spartan540' has been deleted by author (after account deletion)!
  • " The DoD OIG found that the Army had issued a sole-source contract to Boeing to do what the DLA is supposed to do for the entire DoD—obtain parts and materials."
    I never loled so hard in recent days.

    Posted Jul-4-2011 By 

    (1) | Report

    • Comment of user 'dorbie' has been deleted by author (after account deletion)!
    • Comment of user 'Eva_Destruction' has been deleted by author (after account deletion)!
  • 'implement the most successful business practices '....177 percent......ya right.....imagine if food were marked up like that......mortgage the house for a hotdog...

    Posted Jul-4-2011 By 

    (1) | Report

  • Sounds right to me. Never heard of a 10,000$ hammer?

    Posted Jul-4-2011 By 

    (1) | Report

  • Just raise the debt ceiling so we can continue to pay these prices

    Posted Jul-4-2011 By 

    (1) | Report

  • How much is the defense budget? the corporations are playing us left and right.

    Posted Jul-4-2011 By 

    (0) | Report

    • Comment of user 'Eva_Destruction' has been deleted by author (after account deletion)!
    • @thoth1 "annual DoD budget of more than $700 billion, including the costs of the wars."

      Posted Jul-4-2011 By 

      (0) | Report

  • Americans are too brainwashed to question their military, they only know to worship their flag and parais their military no matter what warcrimes they have commited. Just say you support the troops, dummies.

    Posted Jul-4-2011 By 

    (0) | Report

    • @JohnMcLane2008 Hey Retard...here's some advice...when you have no clue as to what you're talking about you look like a total ASS...Like YOU do!
      Americans do not get involved in government contracts...they are usually conducted by those within the GAO and Government Contract Office. They are NOT a public forum.
      So take your "Americans are brainwashed? And stick it up your ass.

      Posted Jul-4-2011 By 

      (-2) | Report

    • @Gulf Flyer
      You're the retard here, of course you can't act directly on decisions about the military but they still need the people's support to keep on these wars. So if the braindead americans stopped waving flag and jerking off BinLaden pictures maybe the president would have to make things different.

      Posted Jul-4-2011 By 

      (0) | Report

  • So is the DoD actually paying these prices or is this DoD accounting to hide the real purpose of the money?

    Posted Jul-4-2011 By 

    (0) | Report

  • Comment of user 'Ivan Maldonado' has been deleted by author (after account deletion)!
  • and alas i finally see my tax money at work!!! bleeech

    Posted Jul-5-2011 By 

    (0) | Report

  • I thought profiteering was illegal in the U.S.?

    Posted Jul-4-2011 By 

    (-2) | Report