U.S. Air Force Brig. Gen. Keith MacDonald, director of operations, National Guard Bureau, lands a KC-46 at Pease Air National Guard Base, New Hampshire, Dec. 11, 2020. (Tech. Sgt. Aaron Vezeau/U.S. National Guard)
Japan Times/Bloomberg: Boeing charged Japan 1,500% markup on plane part, U.S. Air Force says
Boeing Co. charged the Japanese government an “excessive” price for some spare parts for its refueling tanker plane, as much as 16 times more than the U.S. Air Force paid for its latest versions, according to a service assessment.
In one example involving an April $79 million spare parts contract for the KC-46 tanker, Japan was billed for navigation lights made by subcontractor Honeywell Inc. “at a unit price more than 1,500% above the previous unit price,” according to the previously undisclosed Air Force summary prepared last month.
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WNU Editor: Do not expect an answer on what is a fair price from the Pentagon .... What’s a fair price for KC-46 spare parts? The Air Force isn’t sure (Defense News).
2 comments:
There are 3 or 4 accounting ways for pricing parts. All of them are valid. What professors will tell you is that you do not mix and match methods so as to benefit yourself. You pick a method that is best for you and to stick top it for a length of time.
I would assume that apportioning overhead is the problem. Either they do not want to honestly account for it or their data collection both methodology and IT-wise sucks.
How hard is it for an organization to get a head count? How hard is it to extend out the total cost of employment knowing salaries? There are difficulties, It is why corporations and government organizations have a use it or lose it policy for vacation. It makes keeping their accounting ledgers easier. Maybe bonuses year to year are a problem. Well so what. They make the big bucks they can solve it too. If they cannot solve travel, conferences, meetings, office supplies, property managements real estate and other expenses then they are losers.
I've seen expeditionary forces hemorrhage money just on Conex boxes. They came up with a plan.
The Pentagon has to be spending more time on politics than managing. Bigger organizations have bigger problems in the same areas as accounting as smaller organizations, but they also have more resources, the problems do not necessarily grow linearly or exponentially.
This is an organizational and leadership failure of the Pentagon and its prime contractors.
Arma gives money and they deceive us with corporate investments, 1500% is 300% greater than YFI currency profit
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