The Department of Defense Inspector General (DoDIG) released a report dated October 25, 2024 finding that the Air Force did not pay reasonable prices for spare parts purchased for the C-17 military transport aircraft. The audit was initiated following a report made to the DoD Hotline that Boeing had overcharged for a lavatory soap dispenser used on the C-17. The DoDIG report found that there was a 7,943-percent markup on the soap dispenser, which was approximately 80 times higher than the commercially available price. More broadly, the DoDIG report found that the Air Force only paid fair and reasonable prices for nine of the 46 spare parts audited. The October 25 report does not specifically allege that Boeing withheld cost or pricing data, or denied requests for cost or pricing data, but the report’s findings will likely contribute to a renewed emphasis by the government to obtain data other than certified cost or pricing data from DoD contractors, particularly with respect to sole-source spare parts below the TINA threshold.

The October 25 DoDIG report can be found here.