Boeing charges Army for new helicopter parts but uses old ones

[Traderd]

http://www.chicagotribune.com/news/la-fi-boeing-overcharge-20131014,0,653044.story

Affected the -47's. Using re-manufactured and charging for new is what appears to have happened.

"Four times in the last five years, the Pentagon's inspector general has found that Boeing Co. collected excessive or unjustified payments on U.S. defense contracts."

"In the latest of four audits since 2008, the watchdog office said the Chicago company charged the Army for new helicopter parts while installing used ones."

"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 $16.6 million 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."

 

[Downwind]

I'm a former 67U. This doesn't surprise me at all.

 

[Traderd]

I'm a former 67U. This doesn't surprise me at all.

Do you guys know at the point of installation if the part is a refurb or new? I'm guessing there is a part's life differential between new and rebuilt but I don't really know. I would think they are clearly marking the parts as rebuilt but are charging the DOD as if they were new. Hope they aren't denoting a rebuilt part as new to the line guys.

 

[BoilerUP]

Rebuilt parts are the way of the world and should have just as much longevity as new (admittedly warranties are typically shorter on less expensive vs. new reman parts).

That said, if Uncle Sam paid for new, they should get new.