IG: 4,400 percent profit margins show need for reform in DoD spare parts market

An Arial Photograph of the Pentagon


If one is enjoying a federal government contract, which probably has plenty of fat built into it already, and one is realizing a 4,400% profit margin from the US taxpayers there’s probably something pretty wrong. At least for taxpayers.

(From The Federal News Network)

The IG set a baseline of 15 percent as a reasonable profit margin, based on benchmarks in the Federal Acquisition Regulation and a comparison of similar parts DLA buys from other suppliers. But it found that most of the Transdigm parts were marked up by triple-digit percentage points or more.

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