SEN. ELIZABETH WARREN AND REP. JOHN GARAMENDI LAUNCH PLAN TO STOP DEFENSE CONTRACTOR PRICE GOUGING – By Sara Sirota (The Intercept) / June 9, 2022
The legislation follows investigations showing that aerospace company TransDigm made millions in excess profits off military contracts.
MORE THAN THREE years have passed since a damning Pentagon report brought renewed attention to how defense companies swindle the government. In the intervening time, Congress has done little to close the loopholes that empower them to do so.
In February 2019, the Pentagon’s inspector general revealed that contractor TransDigm Group overcharged the military by at least $16 million — with margins up to 4,451 percent — for various aircraft parts over a two-year period. A second investigation released in December 2021 showed that the same company cheated the government out of another $21 million by pricing items at up to 3,850 percent more than the reasonable cost.
Sen. Elizabeth Warren, D-Mass., and Rep. John Garamendi, D-Calif., will introduce companion legislation Thursday to leverage Congress’s oversight powers and rein in contractors’ price gouging, The Intercept has learned. The Stop Price Gouging the Military Act is timed to coincide with talks on the annual defense policy bill, which is currently undergoing markup in the Armed Services committees. Both Warren and Garamendi are committee members.
