(Editor's Note: This story has been updated to include a statement from TransDigm.)
Members of the House Oversight and Reform Committee are seeking a "comprehensive" investigation into TransDigm, even after the company last month agreed to refund $16.1 million the Defense Department inspector general previously deemed excess profit.
In a June 6 letter to DOD IG Glenn Fine, four lawmakers write that the committee "is concerned that TransDigm is charging DOD unjustifiable prices for mission-critical spare parts."
"TransDigm has a huge number of contracts with DOD worth hundreds of millions of dollars," they continue, noting that TransDigm indicated to them it collected $782 million in sales from 7,931 contracts with the Pentagon from Jan. 1, 2015 to April 23, 2019.
The committee "requests that your office conduct a comprehensive review of TransDigm's contracts with DOD to identify whether TransDigm earned excess profits on contracts outside of your original sample," the letter reads. "The committee requests that your office conduct a review of the price reasonableness determinations for all contracts awarded to TransDigm by DOD from January 1, 2017, to the present, with a contract value between $200,000 and $250,000 and between $600,000 and $750,000."
Additionally, the committee seeks information about whether the contracting officer requested price data, whether TransDigm provided that data and whether the company received excess profit on the contract.
The letter was signed by committee Chairman Elijah Cummings (D-MD), national security subcommittee Chairman Stephen Lynch (D-MA), as well as panel members Jackie Speier (D-CA) and Ro Khanna (D-CA).
Last month, the committee announced TransDigm had agreed to repay $16.1 million in what the IG determined was excess profit. The move followed a congressional hearing during which the company was criticized by Democrats and Republicans alike.
In a statement sent to Inside Defense today, the company said it "did nothing in contravention of the federal acquisition laws and regulations with respect to its pricing."
"TransDigm’s decision to voluntarily issue refunds was a demonstration of good faith and a reflection of the importance of our DOD customers," the statement added. "As the Defense Logistics Agency officials stated in their letters to TransDigm, 'Paying the refund is voluntary. It is not an admission of any impropriety on the part of TransDigm.'"
The company said it values its "business with the U.S. government and [is] committed to continuing to meet its needs for a consistently reliable supplier of highly specialized aviation parts and technical solutions."