WASHINGTON ― It’s not over yet for TransDigm, the defense contractor that repaid the government $16 million in overcharges amid heat from U.S. lawmakers.
Members of the House Oversight and Government Committee on Thursday, weeks after grilling TransDigm’s chairman at a hearing on Capitol Hill, requested the Department of Defense Inspector General probe the aircraft parts supplier.
The request came in a letter to the IG from committee Chairman Elijah Cummings, D-Md.; national security subpanel Chairman Stephen Lynch, D-Mass.; and committee members Jackie Speier and Ro Khanna, both Democrats from California.
The lawmakers want to know whether TransDigm overcharged the government on a widespread basis. The previous IG examination, requested by Khanna in 2017, only covered a small sample of TransDigm’s contracts ― and it still found the Defense Logistics Agency and the Army overpaid for nearly all of them.
“Because you identified so many overcharges in just the small sample of contracts you examined, we believe it is highly likely that TransDigm is receiving additional excess profits that have not yet been identified,” the lawmakers wrote.
Days after members at TransDigm’s May 15 hearing asked that it repay the money, TransDigm sent the Defense Department an $11.5 million installment.
The outrage has been bipartisan. Last month, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, sent a letter to acting Defense Secretary Patrick Shanahan, President Donald Trump’s intended nominee to lead the department, seeking more information.
The lawmakers who requested a new probe asked that the IG review all contracts awarded to TransDigm by the DoD from 2017 to the present, with a value between $200,000 and $250,000, and between $600,000 and $750,000.
TransDigm told the committee it received $782 million in revenue from 7,931 contracts with the DoD between 2015 and 2019.
Joe Gould is senior Pentagon reporter for Defense News, covering the intersection of national security policy, politics and the defense industry.