Tuesday, October 15, 2013

Boeing rebuts critical Pentagon report on helicopter parts

CH-47F ChinookBoeing Co. on Monday rebutted a Pentagon's inspector general report that said the company overcharged the U.S. Army by up to $16.6 million on a $4.4 billion helicopter contract and said it was still waiting to receive the final report under a Freedom of Information Act request.

The report said Boeing overestimated how many new parts it would need to build the 181 CH-47F Chinook helicopters under the five-year contract, and then installed largely used parts, resulting in overcharges of $7.4 million to $16.6 million.

The inspector general's report faulted the Army for not overseeing the contract properly, and noted it lacked a process to doublecheck Boeing's estimates and track the number of used or new parts that were actually installed.

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