Is Boeing Price Gouging US Military?
Boeing is under investigation for allegations it price gouged the military. The Inspector General says it could jeopardize the company's contract with a U.S. Army depot. The allegations surround Boeing's financial dealings with the Army's Aviation and Missile Life Cycle Management Command (AMCOM), based near Huntsville, Ala. AMCOM bought parts for Chinooks made at the Corpus Christi Army depot and the IG says the cost was far higher than they needed to be. According to the report, Boeing sold parts like a $12.51 "spur gear," which is smaller than a dime, for more than $644. A $7.71 ramp gate roller, which is a little bigger than a quarter, was sold for almost $1,700. The IG said Boeing should repay the government at least $6.5 million in the case.