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Pentagon Seeks Refunds as Pressure Piles on Spare Parts Maker TransDigm

  • Strategy to ‘hike prices on mission-critical parts’: Lawmaker
  • Company calls watchdog’s report ‘misleading and provocative’
TransDigm is a key sole-source provider of spare parts for Pentagon aircraft including the AH-64 Apache attack helicopter.

TransDigm is a key sole-source provider of spare parts for Pentagon aircraft including the AH-64 Apache attack helicopter.

Source: U.S. Air Force

Updated on

The Defense Department is requesting refunds from TransDigm Group Inc. for the second time in less than three years after the department’s watchdog said the supplier of specialized spare parts continues to collect excess profits.

An audit by the Pentagon’s inspector general found the company’s excess profit amounted to $20.8 million -- or more than half of $38.3 million it collected on 153 sole-source contracts from 2017 through mid-2019 that the watchdog reviewed. A previous audit issued in 2019 found $16.1 million in excess profit on $29.7 million in contracts from 2015 to 2017, and the company eventually refunded that amount.