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Boeing Pays Pentagon $10.7 Million to Settle Double-Billing Case

  • Undisclosed September payment capped a three-year inquiry
  • Boeing double-billed on taxes paid for overseas employees
Preparations Ahead Of The Farnborough International Airshow 2014

Photographer: Simon Dawson/Bloomberg

Boeing Co. quietly agreed to repay the U.S. $10.7 million after a three-year investigation concluded it double-billed the military for taxes paid to foreign governments on overseas employees, according to a document and officials.

The overcharges “affected hundreds of contracts across numerous Department of Defense entities,” according to the latest edition of an in-house training newsletter of the Defense Contract Management Agency highlighting contract irregularities. The agreement, reached in September, wasn’t previously disclosed.