In the wake of a congressional hearing last week, defense contractor TransDigm has agreed to repay $16.1 million in excess profits, House Oversight and Reform Committee Chairman Elijah Cummings (D-MD) announced today.
"Today's decision by TransDigm to refund millions of dollars in blatant overcharges would not have happened without the hearing in the Oversight Committee last week," Cummings said in a statement. "This is solid, bread-and-butter oversight that helps our troops and the American taxpayers. We saved more money today for the American people than our committee's entire budget for the year."
Company executives last week appeared before the House Oversight and Government Reform Committee. The hearing also included remarks from the DOD inspector general, who determined in a recent report that the company had earned $16.1 million in excess profit on 46 parts.
"While this is a good first step, we must do even more in the future to prevent unscrupulous contractors from holding us hostage through abusive monopoly contracts," Cummings said in his statement, which included an image of an $11.5 million check marking the first installment of TransDigm's repayment. "I look forward to working with my colleagues on both sides of the aisle on common-sense reforms."
Meanwhile, Pentagon officials say they are considering what steps they should take to address the problem. Kevin Fahey, assistant secretary of defense for acquisition, said during last week's hearing that the Pentagon has long relied on defense companies to act like "partners," but accepts that a few "bad actors" can burden the system.