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Pentagon Contractor's 9,400% Profit on Half-Inch Pin Challenged

  • Lawmakers riled by TransDigm’s refusal to provide information
  • Law weighed to require more disclosure for spare parts deals
Photographer: AFP/AFP

The Pentagon is weighing legislation that would give contracting officers the power to demand back-up data on spare parts costs after its inspector general said TransDigm Group Inc. could be paid about 9,400% in excess profit for a half-inch metal pin.

The Defense Logistics Agency could end up paying TransDigm $4,361 for the “drive pin” in a July contract that should cost $46, according to a Pentagon review endorsed by the inspector general.