Boeing Promises Refunds for Pentagon Overcharges

Boeing, which once planned to charge the Defense Department $748 for two pairs of pliers, announced Tuesday that, if the Pentagon believes that it has been overcharged for support equipment or spare parts, it will get a refund.

“We’re saying that if the Pentagon finds our prices to be unreasonable, send the item back and we’ll be glad to refund your money,” said William McGinty, a spokesman at the Boeing office here.

“Boeing is putting its credibility on the line,” McGinty said. “If there are prices that appear to be unreasonable, we want to make clear that we are going to do something about it.”

Pentagon officials declined immediate comment on the announcement.

The new policy, which the company says is “unprecedented” in the defense industry, was made known to the Pentagon in an April 15 letter signed by Boeing Senior Vice President Lionel D. Alford.

“We intend to support our products at prices considered reasonable by our government customers,” Alford told Deputy Secretary of Defense William Howard Taft IV.

If there are refunds and returns, Boeing will help the Pentagon to find replacement parts, Alford added.