The Tale of the Supplier (Boeing) Who Sold the Shipper (the Pentagon) Old Parts But Charged for New Ones | SupplyChainBrain

The Tale of the Supplier (Boeing) Who Sold the Shipper (the Pentagon) Old Parts But Charged for New Ones

Los Angeles Times

October 16, 2013

Aerospace Defense 05

"Boeing significantly overstated estimates" of new components needed for CH-47F Chinook helicopters and "primarily installed used parts instead" under a $4.4bn contract awarded in 2008, according to the report, labeled "For Official Use Only".

Although used parts were allowed in some circumstances, the July 16 report found that the company overcharged the U.S. Army by as much as $16.6m by exaggerating how many new ones were required while installing refurbished equipment salvaged from old aircraft. The report also faults defense agencies and military services for lax negotiations and contract management.

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