Pentagon Overpaid Supplier With Exclusive Contract By As Much As 85%

[kpete]

Pentagon Found to Overpay Supplier With Lock on Old Parts
By Tony Capaccio Oct 29, 2014 1:18 PM PT 6 Comments Email Print

Pentagon contract officers paid prices exceeding their own targets by as much as 85 percent for replacement aircraft parts from a company that got exclusive rights to supply them from original equipment manufacturers, according to the Defense Department’s inspector general.

Parts needed to avert the grounding or reduced readiness of two of the military’s workhorse helicopters -- the Army’s AH-64 Apache and the Marine Corps’ CH-53 Sea Stallion -- were among those cited in a report by the internal watchdog office on purchases from Ontic Engineering and Manufacturing Inc., a unit of London-based BBA Aviation Plc. (BBA)

The Defense Logistics Agency “did not conduct sufficient analysis to establish the reasonableness” of Ontic’s proposed prices compared with those paid in the past, according to the report dated Sept. 15 and marked “For Official Use Only.” It said the agency “paid approximately $8 million more than is fair and reasonable for 21 sole-source parts” that were reviewed and should seek return of that money.

The agency this year struck a deal with Chicago-based Boeing Co. to settle a case of $13 million in alleged overcharged parts. In that instance, the company agreed to provide $3.2 million of “in-kind” compensation under existing contracts, including free parts.



the rest:
http://www.bloomberg.com/news/2014-10-29/pentagon-found-to-overpay-supplier-with-lock-on-old-parts.html?hootPostID=6e7be5197289ae370595a7f9679ee07d

While overpaying a defense contractor $8 million is not the crime of the century it is indicative of a broken procurement process at the Pentagon that has led to unprecedented taxpayer loses from waste, fraud, and abuse. The “unauditable” finances of the Department of Defense make stories like these inevitable and much too common.

via:
http://news.firedoglake.com/2014/10/30/pentagon-overpaid-supplier-with-exclusive-contract-by-as-much-as-85/

a reminder:

[Luminous Animal]

1. Kick.

[Scuba]

2. I'm sure the Republicans will be all over this. They hate government waste.

[HereSince1628]

3. Pentagon wasteful spending or corporate overcharging?

funny how the blame always goes one place, while the profit from the scam goes elsewhere.

Is that part of the original contract,too???

[Wellstone ruled]

4. Ironric isn't it.

The honesty of the Military Industrial Complex,gee,wonder how much went to Rethug candidates. There in is the real story. It's called bribery.

[kelliekat44]

5. Exclusive contract = companies like Halliburton...white, Republican owned and well connected. nt