This staggering markup resulted in a cost of $149,072 to taxpayers for an item that is ordinarily found in civilian airliners or restaurant bathrooms.
As reported by Reason.com, this revelation was part of a two-year audit of U.S. Air Force purchases from the Boeing Company. The audit, which examined a sample of 46 spare parts for the C-17, found that the Air Force had overpaid for 12 of these parts. This resulted in an additional cost of $992,856 to taxpayers, over and above the parts' original value of $4.3 million.
The C-17 Globemaster III, a symbol of U.S. resupply efforts for allies such as Israel and Ukraine, is a vital asset in the U.S. military's arsenal. With its ability to carry heavier loads over longer distances than any other American aircraft, the U.S. Air Force maintains a fleet of 223 of these transport jets.
TRUMP TRANSITION: WHEN YOU LOSE ALL TRUST IN THE FBI, THIS HAPPENS...
However, the issue of overcharging is not limited to the C-17. It is a widespread problem that significantly impacts the U.S. military budget. In 2015, the Pentagon discovered it was drastically overpaying for Patriot missiles, leading to a renegotiated contract that saved $550 million. In 2019, it was found that the military was paying $4,300 for a half-inch metal drive pin that should have cost just $46.
WHO IS KASH PATEL AND WHY DID TRUMP PICK HIM TO LEAD THE FBI?
October 31, 2024
The audit of C-17 parts was triggered by the excessive markup on soap dispensers. The Office of the Inspector General initiated its investigation in June 2022 after an anonymous whistleblower reported that Boeing was grossly overcharging for airplane bathroom fixtures.
STRANGER THINGS: ELON MUSK GETS BUY-IN FROM VERY UNLIKELY ALLY!
The investigation revealed that the Air Force failed to "validate the accuracy of the data used for contract negotiation, conduct contract surveillance to identify price increases during contract execution, or review invoices to determine fair and reasonable prices before payment."
TRUMP RESPONDS TO BIDEN'S DECISION TO PARDON HUNTER—IN TRUE TRUMP FASHION!
Boeing agreed to cooperate with the investigation on the condition that specific price data would not be disclosed to Congress or the public, citing trade secret concerns. As a result, the inspector general's report only includes the total extra cost of the soap dispensers, not the quantity purchased by the Air Force or the individual price charged by Boeing.
WATCH: NY SENATOR WANTS TO SECEDE
A standard commercial soap dispenser, which functions identically to the ones used in the C-17, costs approximately $30 online. The 8,000 percent markup implies that the Air Force may have paid thousands of dollars for each dispenser.
The report also found that the Air Force overpaid $293,632.74 on retaining bands. Other overpriced items included bearings, screws, gaskets, lights, and even tape, for which Boeing overcharged $2,664.84. The Pentagon's difficulty in identifying overcharging was attributed to officials' reluctance to question costs if they matched what Boeing paid its suppliers.
DEM MEGA DONOR: "IF YOU CAN'T RUN A CAMPAIGN YOU SURE CAN'T RUN A COUNTRY"
Boeing spokeswoman Nicola Hammond stated, "We are reviewing the report, which appears to be based on an inapt comparison of the prices paid for parts that meet aircraft and contract specifications and designs versus basic commercial items that would not be qualified or approved for use on the C-17." She added that Boeing would continue to work with the Office of the Inspector General and the U.S. Air Force to provide a detailed written response to the report.
BREAKING NEWS: WHOA! DID JOE BIDEN REALLY JUST DO THIS?!?!
Former Raytheon Contract Negotiator and Pentagon Director of Defense Pricing Shay Assad attributed the rampant price increases to a lack of competition. He stated, "In the '80s, there was intense competition amongst a number of companies. And so the government had choices. They had leverage. We have limited leverage now." This lack of competition and the resulting limited leverage underscore the need for increased scrutiny and transparency in military procurement processes.
