HomeUSAAir Force Overcharged 7,943% for C-17 Hand Soap Dispensers, Watchdog Finds

Air Force Overcharged 7,943% for C-17 Hand Soap Dispensers, Watchdog Finds

Published on

Weekly Newsletter

To be updated with all the latest news, offers and special announcements.

The Air Force overpaid $149,072 for … (checks notes) … hand soap dispensers, according to a new Pentagon watchdog report.

In all, the service accepted a 7,943% markup, or more than 80 times the commercially available cost, on the soap dispensers for its C-17 Globemaster II aircraft, resulting in the hefty overpayment, the Defense Department inspector general said in the findings released Tuesday.

“The overall function of these soap dispensers is identical, whether used in a residential kitchen or bathroom, commercial restaurant bathrooms, or in an aircraft lavatory,” the IG wrote in the report.

Read Next: The Rise of Soldier-Influencers: Army Eyes Policy for Troops with Millions of Online Followers

A whistleblower complaint about the Air Force overpaying for the dispensers on C-17s prompted the IG audit, and the findings show the service was grossly upcharged for a variety of parts.

“We initiated the audit in response to an allegation to the DoD Hotline concerning spare parts pricing,” the IG said in a released statement. “The allegation stated that the Boeing Company (Boeing) overcharged the Air Force for a lavatory soap dispenser used on the C‑17.”

Overall, the watchdog said that “the Air Force did not consistently pay reasonable prices for C-17 spare parts in accordance with the Federal Acquisition Regulation.”

The C-17 Globemaster is the Air Force’s major cargo aircraft, utilized for everything from military transport to humanitarian missions. There are upward of 200 of the aircraft throughout the service, the report said.

The Pentagon watchdog examined 46 spare parts for the plane, including the soap dispenser, as part of its probe. Investigators found the Air Force overpaid about $1 million for a variety of parts.

The soap dispensers on the C-17s were perhaps the most damning example provided in the report. A photo of the purchased dispensers, as well as a widely available one that looks nearly identical, was provided as context in the report.

The report had some details redacted, such as the unit cost and the number purchased by the Air Force. Military.com found seemingly the same commercial soap dispenser pictured in the report on Amazon for $71.12.

Investigators found that the Air Force did not pay reasonable prices for 12 of the 46 parts reviewed, or 26%. Another nine parts, about 20% of them, were acceptable. But the service could not determine whether the pricing was acceptable for the remaining 25 parts, or 54%.

DoD Inspector General Robert Storch said the findings were concerning and could ultimately harm the Air Force’s C-17 fleet.

“The Air Force needs to establish and implement more effective internal controls to help prevent overpaying for spare parts for the remainder of this contract, which continues through 2031,” Storch said in a news release. “Significant overpayments for spare parts may reduce the number of spare parts that Boeing can purchase on the contract, potentially reducing C-17 readiness worldwide.”

In another example, IG investigators pointed to an upcharge for a pressure transmitter, detailing a 3,556% markup — more than 36 times the commercially available cost — causing the Air Force to overpay $142,091.

Boeing told Military.com in an emailed statement it is reviewing the findings.

“We are reviewing the report, which appears to be based on an inapt comparison of the prices paid for parts that meet aircraft and contract specifications and designs versus basic commercial items that would not be qualified or approved for use on the C-17,” Boeing told Military.com in an emailed statement. “We will continue to work with the OIG and the U.S. Air Force to provide a detailed written response to the report in the coming days.”

The IG report made eight recommendations to the Air Force and defense contracting officials, including “requesting a technical analysis on bill of materials and forecasting systems, and for reviewing invoices before payment.”

Related: C-17 Crew Cleared After Civilians Clinging to Plane Fell to Their Deaths During Afghanistan Evacuation

Story Continues

Read the full article here

Latest articles

How to Store Pasta So It Lasts for Decades

Along with beans and rice, pasta is a staple that should be part of...

California Teen Duck Hunter’s Body Found, Brother Still Missing

In a tragic turn of events, the body of 19-year-old Andruw Cornett was recovered...

Canadian Gun Grabbers Miffed Government Not Going Far Enough

Information is power. The more information...

Computer Scientist Warns That Artificial Intelligence Could Turn Against Humanity

Renowned award-winning computer scientist Yoshua Bengio has warned that artificial intelligence could turn against...

New Orleans Offered PS5s in Exchange for Guns Day Before Attack to ‘BoostPublic Safety’

So-called gun buybacks don't work. Despite...

More like this

Stormproof Ski Shell for Backcountry or Resort: Arc’teryx Sabre Freeride Jacket Review

A mild morning on the skin track had turned into an afternoon of whipping...

Montana Sues Park Service Over Yellowstone National Park Bison Plan

Montana state officials have already made a New Year’s resolution: Sue the federal government....

We Really Need to Talk More About Gun Control’s Racist Past

A handful of years ago, there...

Taurus GX2 Review (Shooting Video)

I recently had the opportunity to test the brand-new Taurus GX2, which...