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

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

October 16, 2013
Los Angeles Times

"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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    KEYWORDS Aerospace & Defense aerospace supply chain business fraud Business Strategy Alignment Global Supply Chain Management Logistics Los Angeles Times Regulation & Compliance SC Security & Risk Mgmt Sourcing/Procurement/SCM Supplier Relations Supply Chain Analysis & Consulting supply chain management: aerospace and defense Supply Chain Risk Management Technology
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