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You are here: Home / Government Contracting News / IG says Army paid too much upgrading Russian copters

August 22, 2014 By AMK

IG says Army paid too much upgrading Russian copters

U.S. Army contracting officers overpaid an American company upgrading Russian-made Mi-17 helicopters as contract costs increased almost 70 percent, according to an audit by the Pentagon inspector general.

The Army Contracting Command has responded that it will seek to recoup $128,990 of $151,543 in what the audit called “excess fees” paid since 2010 to Columbia, Maryland-based Science and Engineering Services Inc. The remaining $22,553 in fees was justified, according to the audit by the inspector general dated July 28.

While the amounts wouldn’t put a dent in the Pentagon’s $496 billion annual base budget, the inspector general’s report is the latest of three to question the contracting practices of an Army-run office set up in 2010 to manage the purchase and maintenance of foreign-made helicopters such as the medium-lift Mi-17 transport helicopters sold to U.S. allies Afghanistan, Pakistan and Iraq.

Keep reading this article at: http://www.bloomberg.com/news/2014-08-12/u-s-army-paid-too-much-upgrading-russian-copters-audit.html

Filed Under: Government Contracting News Tagged With: Army, audit, DoD, IG, overpayment, price reasonableness

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