Pentagon paid $14.4 million for parts worth $4.4 million: report

SHARE Pentagon paid $14.4 million for parts worth $4.4 million: report

If you’re the manufacturer of helicopter parts, you may want to pitch your products to the Defense Department. That’s because you’ll end up pulling in some significant money — and significantly more money than those parts are worth, according to a report from the Office of the Inspector General.

One report shows that in 2012, the Pentagon paid $13.4 million to Bell Helicopter, but the government watchdog says those parts should only have cost $4.4 million. That’s quite a markup.

“The U.S. government is receiving fair and reasonable price for commercial items acquired by our company,” Bell Helicopter spokesman Robert Hastings told Bloomberg.

But the watchdog disagrees.

From the report:

“The contracting officer did not sufficiently determine whether prices were fair and reasonable for sole-source commercial parts negotiated on contract SPE4AX-12-D-9005. This occurred because the contracting officer did not perform an adequate analysis when procuring sole-source commercial parts. Specifically, the contracting officer used the previous DoD purchase price without performing historical price analysis and accepted Bell’s market-based pricing strategy in a noncompetitive environment without performing a sufficient sales analysis.

“If it’s an isolated case, that’s one thing,” Under Secretary Frank Kendall told Bloomberg. “If it’s systemic, that’s a much bigger deal.”

Here’s a closer look at some of the specific parts, with bevel gears being the undisputed king of inflated price:

h/t: Bloomberg

The Latest
Más de 20 personas fueron heridas de bala en Chicago en poco más de cuatro horas a primera hora del lunes, incluyendo otro tiroteo masivo en Englewood que hirió a siete personas.
La compañía, que fue comprada por la firma de capital privado Variant Equity Advisors por $270 millones en 2019, dijo que las operaciones de autobuses continuarán mientras se enfrenta a una venta.
Cerca de 490,000 cónyuges de ciudadanos estadounidenses tendrán la oportunidad de solicitar un programa de “libertad condicional” que les protegerá de las deportaciones y les ofrecerá permisos de trabajo si han vivido en el país durante al menos 10 años.
Christian Acevedo, 18, was sentenced Monday after pleading guilty to murder and attempted murder in the 2022 shootings.
Fans can apply to see the Aug. 19-22 shows at the Auditorium Theatre during the Democratic National Convention.