Pentagon Will Seek Refund Guarantees in Parts Contracts
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WASHINGTON — Defense Secretary Caspar W. Weinberger said Tuesday he has ordered Pentagon officials to seek written refund guarantees from military contractors for spare parts that are determined to be overpriced.
The initiative was prompted by voluntary offers to establish such a policy from the General Electric Co. and the Boeing Co., Weinberger said in a prepared statement.
The offers of both firms have been accepted, Weinberger said. The companies have pledged to give the Pentagon full credit or a refund for any spare part they deliver that is subsequently determined to be unreasonably priced.
Although it was not mentioned in Weinberger’s announcement, the Grumman Corp. has been following the same policy with the Navy since early this year.
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