Pentagon paid $8,124 for a $445 Textron gear, U.S. report says

The Pentagon paid Textron Inc.’s Bell Helicopter unit $8,123.50 each for gears that should have cost $445.06, according to a report by the Defense Department’s inspector general. More

To continue reading this article, please do one of the following.



defense industry

Pentagon paid $8,124 for a $445 Textron gear, U.S. report says

COURTESY TEXTRON INC.
ACCORDING TO A GOVERNMENT report, the Defense Department paid Textron Inc. subsidiary Bell Helicopter more than $8,000 for gears that should have cost less than $500. A spokesman for Bell said the company "does not agree with the findings" of the report.
Posted 7/9/14

WASHINGTON – The Pentagon paid Textron Inc.’s Bell Helicopter unit $8,123.50 each for gears that should have cost $445.06, according to a report by the Defense Department’s inspector general.

The bevel gears that were marked up 18-fold were part of $9 million in excess payments by taxpayers cited by the watchdog office.

This is the latest case in which the inspector general said Pentagon agencies allowed contractors to overcharge for parts. For decades, the Defense Department has periodically been the subject of ridicule from lawmakers, and even late night comedians, after reports of inflated prices for items such as a coffee pot and toilet seat.

In the Bell case, the inspector general recommended that the Defense Logistics Agency seek to recoup the excess money and analyze prices to ensure taxpayers aren’t further overcharged. Otherwise, the excess payments may increase by an additional $2.6 million under Bell’s noncompetitive contract, the report found.

“The contracting officer did not sufficiently determine whether prices were fair and reasonable,” according to the July 3 report, signed by Jacqueline Wicecarver, assistant inspector general for acquisition. The report, obtained by Bloomberg News, was labeled “For Official Use Only.”

Bell Helicopter “does not agree with the findings or recommendations,” Andy Woodward, a spokesman for the unit of Providence-based Textron, said in a statement.

“Bell Helicopter has fully complied with all applicable regulations, and continues to adhere to its policy, which ensures that the U.S. Government consistently receives the best price on commercial items acquired for its use,” he said.

‘Noncompetitive environment’

The alleged overcharges were incurred on Bell’s 2012 sole-source, $128 million contract to support Navy and Marine Corps H-1 and Army OH-58 Kiowa helicopters. The contract is in place until February 2017.

Next Page
Calendar
PBN Hosted
Events

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement