An F/A-18 takes flight from the aircraft carrier USS Ronald Reagan in the Philippine Sea in 2017. The Navy spent roughly $4 million more than it should have to repair radar systems on its F/A-18 Hornet fighter jets, according to a Defense Department audit. (Benjamin A. Lewis/U.S. Navy)
The Navy spent nearly $4 million more than it should have to repair radars on its F/A-18 Hornet fighter jets, according to a Defense Department audit.
The DOD inspector general’s investigation found that Naval Supply Systems Command Weapon Systems Support failed to obtain fair and reasonable pricing for 53% of over 200 parts examined, according to a report dated Wednesday.
The parts altogether cost nearly $45 million, the report said.
The report blamed the Navy for failing to identify price fluctuations for each item purchased. Navy officials said they typically review total labor and material costs, while looking for price differences from the previous year.
They also said that contractors don’t know how much repair is needed when drafting a proposal, the report said.
The IG countered that it was able to determine price differences after asking the contractor for additional information.
Defense contractor Raytheon started repairing the radar systems on the F/A-18 Hornet in 1998. As part of a December 2021 acquisition, Vertex Aerospace assumed authority from Raytheon of the repair contracts for the aircraft’s AN/APG 65 and AN/APG 73 radars.
The following year, Vertex Aerospace merged with Vectrus Systems Corp. and rebranded as V2X. Vertex M&S, a subsidiary of V2X, is the only approved source to repair the radars.
The Inspector General’s recommendations to prevent future overpayments included agreeing on terms for fair pricing for remaining orders under the agreement as well as identifying differences between actual costs and proposed costs before finalizing the remaining delivery orders.
Also, the Navy should develop a methodology for consistently allocating support costs associated with repair items and services and require the contractor to use the methodology, the report said.
Naval Supply Systems Command disagreed with a recommendation to seek recovery of at least $3.93 million and determine whether payments above actual costs were made, saying the situation doesn’t call for it, according to the IG report.
