Pricey soap dispensers on Air Force planes lead to parts probe

Complaints that the Air Force was being overcharged for bathroom soap dispensers in its C-17 Globemaster transport aircraft prompted a Defense Department audit that steered toward finding that the service wasn’t paying “fair and reasonable” prices for many of the fleet’s spare parts.

On Tuesday, Pentagon Inspector General Robert P. Storch released the agency’s audit of C-17 spare parts pricing that was initiated in response to a Defense Department Hotline allegation about the overpriced soap dispensers.

The Air Force says it has a fleet of 223 C-17 aircraft operated by the Air Force, Air National Guard, Air Force Reserve Command and Air Force Materiel Command.

The plane has been in service for three decades and is widely considered the Air Force’s most flexible cargo aircraft. It can rapidly deliver troops and cargo to main operating bases or austere forward-deployed locations.

Since 2011, the Air Force has awarded Boeing spare parts contracts worth more than $2 billion, according to the audit. Under the deal, the company bought the parts for the C-17s and was reimbursed by the Air Force.

“Boeing is responsible for being an effective agent for the government when purchasing the spare parts, which includes obtaining fair and reasonable prices,” according to the Pentagon IG report. “The Air Force is responsible for providing surveillance during the performance of the contracts to ensure Boeing uses effective cost controls.”

Common lavatory soap dispensers were among the spare parts that the Air Force overpaid for its C-17 fleet. Commercial soap dispensers can be found on Amazon for as little as $10, but the Air Force paid more than 80 times that, according to the IG report.

“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,” Mr. Storch said in a statement. “Significant overpayments for spare parts may reduce the number of spare parts that Boeing can purchase on the contract, potentially reducing C-17 readiness worldwide.”