Congress probes 4,400% profit on Air Force parts
Some of the parts likely used on those T-38 trainers at Oklahoma’s Vance Air Force base and the Sheppard Air Base in Wichita Falls, Texas likely involved extreme profit margins now under investigation by Congress.
The House Oversight and Government Reform Committee has started looking into a Cleveland, Ohio-based company called TransDigm. It is accused of price gouging for the parts it supplies aircraft such as a small disconnect coupling half used on the T-38 Talon jet.
It cost TransDigm only $173 to produce but the company charged the Pentagon $6,986. That’s a 3,930 percent profit. Or there’s the three inch ring called a “non-vehicular clutch disk” used on C-135 transport planes. It cost $32 to produce but TransDigm charged $1,443 resulting in a 4,436 percent profit.
Click here to read the entire story reported by Defense News.
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