Boeing Caught Selling Used Parts as 'New' to US

Boeing, the Pentagon's second-biggest contractor, has repeatedly ripped Uncle Sam off, a new report from the military's inspector general has concluded. In its most recent scheme, Boeing charged the federal government for new helicopter parts, and "primarily installed used parts instead," according to the report, which was obtained by Bloomberg. The company allegedly overcharged the Pentagon by as much as $16.6 million for the parts. The military also paid for parts that were never installed, then allowed Boeing to keep them for its own future use.

It was the fourth instance of Boeing overcharging the Pentagon in the past five years, the report said. In June it overcharged the Pentagon by $13.7 million on a spare parts order; it priced aluminum "bearing sleeves," for example, at $2,286 each, instead of the $10 they were worth. The report complained that the military lacks "the technical expertise" to effectively negotiate with Boeing or spot such problems. The company, meanwhile, says it "disagrees with the IG's conclusions" and believes it is "fully compliant" with government policies. (More Boeing stories.)