Boeing Pressed to Refund $13 Million in Parts Overcharges

Boeing Co. (BA) officials are meeting today with Pentagon representatives to resolve a request that the company refund $13 million in overcharges for spare parts.

The two sides are discussing the findings of a June 7 audit by the Pentagon’s inspector general as well as the Defense Logistics Agency’s request for a refund, agency spokeswoman Michelle McCaskill said in an e-mailed statement.

The agency overpaid about $1.3 million for 573 aluminum bearing sleeves used on an aircraft’s main landing-gear door, or $2,286 each for a part that should have cost $10, according to an example cited in the audit labeled “For Official Use Only.”

The inspector general found the excessive prices by reviewing a sample of parts requested under a 2009 “basic ordering agreement” for components and assemblies used on B-1B and B-52 bombers, E-3 surveillance aircraft, KC-135 tankers, Minuteman nuclear missiles and AC-130U gunships.

“We are meeting with DLA officials to understand and resolve issues” identified in the watchdog office’s report, “as well as address DLA’s letter requesting a voluntary repayment,” Paul Guse, a spokesman for Chicago-based Boeing, said in an e-mailed statement.

“We are discussing process improvements going forward in areas such as streamlined processes, enhanced performance and improved affordability,” Guse said.

To contact the reporter on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net

To contact the editor responsible for this story: John Walcott at jwalcott9@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.