RELEASE: Rep. Khanna Calls for Investigation of Aerospace Defense Contractor Business Practices
Washington, DC – Rep. Ro Khanna (CA-17) sent a letter today to the Defense Department Inspector General asking for an investigation into the business practices of aerospace company, TransDigm Group. Recent news reports indicate that TransDigm may be operating as a “hidden monopolist” and more information must be made available to the public on the company’s business practices.
The TransDigm Group is a specialized developer, distributor, and manufacturer of commercial and military aerospace components. The inspector general is being notified to protect tax payers from waste, fraud, and abuse and encourage greater oversight of defense contractors.
Congressman Khanna writes:
“[F]ederal regulations protect the taxpayer against sole source contractors like TransDigm. When a vendor is understood to be a monopoly supplier, that supplier is required to in turn offer cost information about the product to the government or otherwise the government must conduct a thorough review of the likely cost of the product. In addition, vendors must tell procurement officers if they belong to a holding company to allow the government access to transparency in pricing across a defense contractor’s entire business. TransDigm appears to use a range of methods to evade these protections.”
The congressman is a member of the House Armed Services Committee.
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