WASHINGTON (Reuters) - Aircraft component maker and Pentagon supplier TransDigm Group, admonished on Wednesday during a hearing on its billing practices, had a “predatory approach,” the Pentagon’s chief financial official said in Congressional testimony on Thursday.
Executives for TransDigm testified before a Congressional committee on Wednesday after a Pentagon-endorsed investigation found the company made profits exceeding 1,000% on some spare parts and equipment.
“The model that this company did is not a partner firm, it’s a predatory approach,” Under Secretary of Defense Comptroller David Norquist told a U.S. House of Representatives hearing on the Pentagon’s audit plan.
“They went and they bought license for things where there was no other competitor - attached to large assets like aircraft where the department couldn’t function without it, and if they were under $2 million dollars the rules do not require them to disclose cost,” he said.
During the hearing on TransDigm’s practices on Wednesday lawmakers suggested that allowing Pentagon equipment purchasers to request production cost data on sole-source products would be re-examined.
TransDigm was not immediately available for comment.
Reporting by Mike Stone; Editing by Susan Thomas