TransDigm Faulted at Pentagon for $21 Million in Excess Profits

TransDigm Group Inc., one of the Pentagon’s largest suppliers of spare parts, was paid at least $20.8 million in excess profits on 105 parts from early 2017 to mid-2019, according to a two-year inquiry into the company’s business model by the Pentagon’s inspector general.

“We determined that 150 out of the 152 contracts” that the inspector general examined “were not obtained at fair and reasonable prices,” and “we found excess profit levels ranged from 2.8% to 3,850.6%” compared with the “maximum profit percentage standard for this audit at 15%,” according to the report released Monday that was first obtained ...