Army Paid $23 Million For Spare Helicopter Parts Only Worth $10 Million

The Army paid $23 million for spare helicopter parts from Boeing that were worth only $10 million. That according to a leaked Defense Department inspector general's report made public on the Project on Government Oversight website. Among the other things Army was overcharged for by Boeing: $1,600 for a plastic roller available from internal Pentagon supplies for just $7. They also paid $71-per-unit for a set of metal pins that Defense could have provided for 4 cents. That's a markup of 177,000 percent. The Inspector General of the Army criticizes the branch for not bargaining harder on prices. He also recommends that Boeing refund the Army more than $6 million. But Army has turned down that Idea. GovExec reports Boeing blames rapidly changing requirements during a time of war for the fluctuation in prices.