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Pentagon Price Gouging

Pentagon Price Gouging

Price gouging: the history of unaccountable U.S. weapons spending stretches back decades. But it’s getting renewed attention. And evidence of overcharging is easy to find if you’re looking.

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Until 2010, Boeing charged an average of $300 for a trash container used in the E-3 Sentry, a surveillance and radar plane based on the 707 civilian airliner. When the 707 fell out of use in the United States, the trash can was no longer a “commercial” item, meaning that Boeing was not obligated to keep its price at previous levels, according to a weapons industry source who spoke to RS.

In 2020, the Pentagon paid Boeing over $200,000 for four of the trash cans, translating to roughly $51,606 per unit. In a 2021 contract, the company charged $36,640 each for 11 trash containers, resulting in a total cost of more than $400,000. The apparent overcharge cost taxpayers an extra $600,000 between the two contracts.

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Pentagon Price Gouging
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Us-army-soldiers
Top photo credit: U.S. Army Soldiers, from the 173rd Airborne Brigade Combat Team depart for Afghanistan from Italy on Feb. 25, 2005. (U.S. Air Force Photo by Staff Sgt. Bethann Caporaletti)

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Military Industrial Complex

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Top image credti: WASHINGTON (Jan. 29, 2008) Adm. Mike Mullen, chairman of the Joint Chiefs of Staff and Secretary of Defense Robert M. Gates attend a meeting of military combatant commanders with President George W. Bush in the Cabinet Room of the White House. U.S. Navy photo by Mass Communication Specialist 1st Class Chad J. McNeeley

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Military Industrial Complex

This article is the latest installment in our Quincy Institute/Responsible Statecraft project series highlighting the writing and reporting of U.S. military veterans. Click here for more information.


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Top image credit: Brian G. Rhodes via shutterstock.com

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Are the military services babying the F-35 to obscure its true costs while continuing to get enormous sums of taxpayer funding for a plane that has consistently failed to live up to performance expectations?

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