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Military Pushes Parts Maker TransDigm to Return ‘Excess Profit’

  • Army and Pentagon purchasing agency are asking for refunds
  • Defense Department audit cites $16 million in ‘excess profit’
US-ARCHITECHTURE-PENTAGON

Photographer: AFP via Getty Images

The Army and the Pentagon’s purchasing agency are pursuing voluntary refunds from TransDigm Group Inc. after an inspector general’s report found $16.1 million in “excess profit” on $26.2 million in sales by the manufacturer of aircraft components.

The Defense Department’s watchdog office said it discovered excess profit on 46 of 47 parts in a sample of purchases from 2015 to 2017, according to the report obtained by Bloomberg News. It said the company earned more than a reasonable profit on 46 of 47 parts sampled, ranging from excesses of 17 percent to 4,451 percent.