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Boeing Pressed to Refund $13 Million in Parts Overcchages

July 31 (Bloomberg) -- Boeing Co. 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

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