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.

In another case, Lockheed Martin hiked the price of an electrical conduit for the P-3 plane as much as 14 fold, costing the Pentagon an additional $133,000 between 2008 and 2015.

Jamaica Bearings — a company that distributes parts manufactured by other firms — sold the Department of Defense 13 radio filters that had once cost $350 each for nearly $49,000 per unit in 2022. The apparent markup cost taxpayers more than $600,000 in extra fees.

The revelations come as major arms manufacturers boast record revenues. Lockheed Martin, General Dynamics, and Raytheon Technologies have each reported all-time highs in demand following Russia’s invasion of Ukraine, allowing the companies to give shareholders nearly $20 billion last year through stock buybacks and dividends. And the CEOs of the top five weapons makers each make between $18 million and $23 million per year.

  • Albanian_Lil_Pump [he/him]
    ·
    edit-2
    1 year ago

    A lot of small businesses somehow manage to attract the attention of the pentagon. Part of me wants to sell the CIA some piece of junk marked up to like $100,000 per unit. But the other part fears that maybe my product will be too good, and I’ll end up being killed like the guy who sold the DOD investigated the DOJ’s theft of the PROMIS software

        • JuryNullification [he/him]
          ·
          1 year ago

          They were able to screw him over so badly because they were the DoJ. He’s still alive, at least according to the Ghost Stories for the End of the World series on it from last year, which I highly recommend, but he hates talking about it.