DEFENSE BRIEFING: Lawmakers Pressure TransDigm, DOD Seeks Refund

The Defense Department is requesting refunds from TransDigm for the second time in less than three years after the department’s watchdog said the supplier of specialized spare parts continues to collect excess profits.

An audit by the Pentagon’s inspector general found the company’s excess profit amounted to $20.8 million -- or more than half of $38.3 million it collected on 153 sole-source contracts from 2017 through mid-2019 that the watchdog reviewed. A previous audit issued in 2019 found $16.1 million in excess profit on $29.7 million in contracts from 2015 to 2017, and the company eventually refunded that amount.

The inspector ...