The Air Force overpaid for soap dispensers used in the bathrooms of C-17 military aircraft by 7,943% — or more than 80 times the price of comparable commercially available dispensers — according to a report from the department’s inspector general of Defense that was released on Tuesday.
The dispensers were one of about a dozen spare parts required Boeing According to the report, the Air Force overcharged the Air Force, resulting in nearly $1 million in additional and unnecessary costs.
The cost of the Boeing soap dispenser, the similar soap dispenser and the number of dispensers purchased by the Air Force were redacted in the report, but in total the Air Force overpaid $149,072 for the soap dispensers.
Department of Defense General Inspector Report
An anonymous tip about the dispensers prompted the inspector general’s audit of the spare parts.
“The Air Force must establish and implement more effective internal controls to avoid overpaying for spare parts for the remainder of this contract, which runs through 2031,” Defense Department Inspector General Robert Storch said in a statement.
Boeing has a contract with the Air Force that allows Boeing to purchase necessary spare parts for the C-17, and the Air Force reimburses Boeing for the spare parts purchased, the report said.
“Significant overpayments for spare parts could reduce the number of spare parts Boeing can purchase under the contract, potentially reducing C-17 readiness globally,” Storch said.
A Boeing spokesperson told CBS News that Boeing was reviewing the allegations in the report and said the company would have a detailed response “in the coming days.”
“We are reviewing the report, which appears to be based on an incorrect comparison of prices paid for parts that meet aircraft and contract specifications and designs, versus commercial commodity items that would not be qualified or approved for use on the C-17,” the Boeing spokesperson tried to explain in a statement.
An Air Force spokesperson said in a statement that the Air Force is working with the agency responsible for the contracts to ensure payments are accurate and is also updating the contracts with more information about subcontractors.
The Air Force calls the Boeing Globemaster C-17s “the most flexible cargo aircraft” in its fleet, capable of transporting large equipment and groups of people for military, humanitarian or peacekeeping missions.
About 220 C-17s are used by the Air Force, Air National Guard and Air Force Reserve Command.
contributed to this report.
