TransDigm Company Must Repay $20.8Mln Excess Profit Charged To Pentagon - US House Panel

WASHINGTON (UrduPoint News / Sputnik - 20th January, 2022) The TransDigm Group used unscrupulous tactics to make enormous profits on artificially inflated costs and must repay almost $21 million that it overcharged the US government on spare parts for military equipment, the House of Representatives Committee on Oversight and Reform said in a release on Wednesday.

"The documents and information obtained by the Committee reveal TransDigm's unscrupulous tactics to rip off taxpayers," the release said. "TransDigm must immediately return the $20.8 million it overcharged American taxpayers. These outrageous abuses demand swift action from Congress to prevent this behavior in the future."

The Committee was told at a hearing that the TransDigm Group made excess profits of $22.5 million on 105 of 107 spare parts it sold to the Defense Department, the release said.

The company had also practiced aggressive tactics to boost the costs it charged for the par components it supplied, dramatically increasing its profit margins, the release also said.

"These tactics included limiting competition, concealing cost data, negotiating for contracts with fewer transparency requirements and avoiding long-term agreements that would lock in prices. Former TransDigm employees also detailed TransDigm's aggressive pricing practices and the company's negative reputation within the aerospace industry," the release added.

The TransDigm Group is a leading global producer, designer and supplier of engineered aerospace components, systems and subsystems and is based in Cleveland in the US state of Ohio.