AlliedSignal Reportedly Charged Air Force $325 for $28 Metal Plate
MORRISTOWN, N.J. (AP) _ AlliedSignal Inc. charged the U.S. Air Force $325 for a $28 metal plate, a government auditor said.
The defense contractor said that the Air Force ordered only one plate, and bidding and administrative costs, together with the profit margin, raised the fee for the first plate to $325, said AlliedSignal spokesman Dennis Signorovitch.
The Defense Department’s inspector general reported the pricing discrepancy in a recent audit.
AlliedSignal bought 25 of the plates for $318 - or $12.72 each - from a subcontractor. The other plates are in storage and would cost the Air Force $28 if it wants them, Signorovitch said.
″With inventory costs, I’m sure we lost money on the deal,″ Signorovitch said.
The inspector general told the trade journal Defense Week that AlliedSignal did nothing to add value to the item, and that the Air Force should have gone directly to the subcontractor.
The Record of Hackensack reported the story Sunday.
The plate is used in a hoist to remove transmitters from F-15 jets.