Recent Government Audit found that "Defense" contractor Boeing has been Massively overcharging taxpayers for mundane parts: $71 for a metal pin that should cost just 4 cents; $650 for a gear smaller than a dime that sells for $12; $1,700 for a tiny part that can be bought for $8. Thanks Boeing

submitted by useless_aether from intrepidreport.com

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[–]Work2Death 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Part of this stems from the government's contract negotiation methods. These parts are sub-line items in massive contracts. Sometimes only 60-80% of these are reviewed, but the over-all contract might be evaluated for cost reasonableness. These large government contractors understand exactly how the government's system works and how to exploit it.