U.S. Army officials prefer to focus on the decreased repair  turnaround times at a maintenance depot where Pentagon investigators  found Boeing overcharged the Army $13 million on spare helicopter parts,  not on the $10 roller assemblies that cost the Army more than $1,600.

 A U.S. Apache   helicopter fires rockets during a joint gunnery exercise. Pentagon  investigators found Boeing overcharged the U.S. Army $13 million on  spare helicopter parts.   (Jung Yeon-Je / AFP via Getty Images) 
The  Army's Aviation and Missile Life Cycle Management Command bought the 18  parts highlighted in a recent Defense Department Inspector General's  report, which made up the $13 million in overcharges. Soldiers and  civilians used the parts at Corpus Christi Army Depot, Texas.
The DoD Inspector General's report highlighted extreme  overcharges in comparing Boeing prices to those that would have been  charged by the Defense Logistics Agency (DLA). In one case, Boeing  charged the Army $71 for a straight pin that would have cost the service  4 cents from DLA. Boeing also charged $381.78 for a bolt retainer; DLA  charges $6.77.
In all, the Army paid $23 million for the 18 sets  of parts that should have cost the service $10 million, a 131 percent  price hike, according to the full IG report, which was first released by  the Project on Government Oversight. 
However, the 18 parts  highlighted in the report make up a small sliver of the 8,000 parts  included in Boeing's contract with the Army, according to Dan O'Boyle,  an Army spokesman. The price increase paid by the Army for the entirety  of the contract is 17 percent, which was acceptable to service officials  in order to cut down on back orders and keep up with increased  maintenance needs for the wars in Iraq and Afghanistan, he said.
"It  was recognized that using a material integrator would drive an  estimated average material price increase of about 25 percent, based on  lower parts quantities and immediate parts availability, but would be  offset by the increase in parts availability and increased readiness,"  O'Boyle said in a statement.
Army officials credited Boeing with  reducing back-ordered parts from 292 in 2004 down to 22, which led to an  overall increase of readiness rates by 10 percent. Upon further  inspection, O'Boyle said, the Army found that about 2,000 parts included  in the contract are priced less than Army and DLA inventory prices.
The  Corpus Christi Army Depot is a maintenance center used mainly for Army  helicopters. Boeing builds the Army's AH-64 Apache attack helicopter and  the CH-47 Chinook twin-rotor utility helicopter.
A previous Army  audit of the initial contract could have caught the overcharges of the  18 parts, but the Army audit only covered "80 percent of the total  dollars associated with the bill of material for this contract because  of the magnitude of the parts involved," O'Boyle said.
A similar  audit by the Defense Department Inspector General is taking place  concerning purchases made for the same depot from Sikorsky Aircraft,  according to the report.
The Defense Contract Audit Agency also is  doing a full audit of actual costs expended on the contract, whereas  the Defense Department IG "only sampled a portion of the contractor's  expenditures," O'Boyle said in a statement.
"Given the wartime  environment for Army aviation, more rotary aircraft today and flying six  times above the peacetime flying hours, the critical support to these  platforms could not have been achieved without this agreement," O'Boyle  said in a statement.
After the Defense Department IG released its  report, Boeing issued the Army a voluntary refund of $1.6 million for  five types of parts, an Army official said.
"The handful of errors  cited by the IG's initial report represents an extremely small part of  our outstanding support to our U.S. Army customer," said Bob Algarotti, a  Boeing spokesman. "Boeing voluntarily reimbursed the government for the  items cited and already improved our process, which will prevent  reoccurrence of these errors."
In the same Defense Department IG  inspection that cited the 18 overcharged parts, inspectors found the  Army had not used $339.7 million of inventory before buying the same  parts from Boeing. The Army disputes that figure, saying $48.1 million  is "actually excess at this point," O'Boyle said. 
In response,  the Army will use the Enterprise Resource Planning system to ensure that  inventory is more visible. Army Materiel Command has "implemented a  policy requiring the use of all on-hand inventory before the purchase of  any additional material on performance-based contracts," O'Boyle said.