02:27 PM EDT, 10/29/2024 (MT Newswires) -- Boeing ( BA ) is facing overcharging allegations following an audit by the Department of Defense Office of Inspector General regarding nearly $1 million worth of C-17 aircraft spare parts purchased by the US Air Force.

The agency said Tuesday the Air Force overpaid for a dozen different types of spare parts on the contracts, including a lavatory soap dispenser which it said was priced at more than 80 times the commercially available cost, or a 7,943% markup.

Following its audit, the agency concluded that the Air Force "did not consistently pay reasonable prices for C-17 spare parts in accordance with the Federal Acquisition Regulation."

"The Air Force needs to establish and implement more effective internal controls to help prevent overpaying for spare parts for the remainder of this contract, which continues through 2031," Inspector General Robert Storch said.

"Significant overpayments for spare parts may reduce the number of spare parts that Boeing ( BA ) can purchase on the contract, potentially reducing C-17 readiness worldwide," Storch added.

A Reuters report quoted Boeing ( BA ) as saying it was reviewing the report. The company said the report "appears to be based on an inapt comparison of the prices paid for parts that meet military specifications and designs versus basic commercial items that would not be qualified or approved for use on the C-17."

Boeing ( BA ) did not immediately reply to MT Newswires' request for comment.

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