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RELEASE: Rep. Khanna to hold TransDigm accountable and continue his fight against waste, fraud, and abuse in the defense contracting industry

May 14, 2019
Press Release

Washington, DC – Tomorrow, Rep. Ro Khanna will chair a hearing titled, “DOD Inspector General Report on Excess Profits by TransDigm Group, Inc.” at 10:00am in 2154 Rayburn HOB in the House Committee on Oversight and Reform.

Two years ago, Rep. Khanna and Sen. Warren sent a letter to the Department of Defense (DOD) Inspector General (IG) asking them to investigate TransDigm’s excess profits and price gouging following a troubling audit report. The IG report found that TransDigm’s profit margins ranged from 17% to over 4,000%. The IG considered anything up to 15% as a reasonable profit.

“This hearing is not just about protecting American taxpayers but is also about our national security. I am hopeful TransDigm will agree to pay back to the taxpayer the excess profit they admittedly made on the backs of hard working Americans,” said Rep. Khanna.

TransDigm is a public corporation that manufactures and supplies parts for aircraft used by the United States (U.S.) Air Force and Army. TransDigm provides components for several military platforms, including the AH-64 Apache, C-17 Globemaster III, the FF-16 Fighting Falcon, and the CH-47 Chinook.1 According to the IG, from April 2012 through January 2017, DOD issued 4,942 contracts valued at $471 million to TransDigm. In response to a request from Rep. Khanna, the IG reviewed the prices for a sample of 47 parts purchased from TransDigm under contracts awarded by the Defense Logistics Agency (DLA) and the U.S. Army. The IG determined that “TransDigm earned $16.1 million in excess profit on 46 of the 47 parts it sold to the DLA and the Army for $26.2 million between January 2015 and January 2017.” The IG identified 12 parts that previously had been sold to DOD by another company.



About the Office

Congressman Khanna represents the 17th District of California, which covers communities in Silicon Valley. Visit his website at Follow him on Facebook, Twitter, and Instagram @RepRoKhanna.