Analysis

Debate Over 'Excess' Profits Shows Gap In Contracting Law

By Daniel Wilson (April 25, 2022, 8:07 PM EDT) -- Lawmakers' calls for a Pentagon contractor to return alleged excess profits betray gaps in federal law governing noncompetitive procurements, stemming partially from their efforts to fight perceived abuse while trying to attract more nontraditional contractors.

In a letter released on April 18, House Oversight Committee Chairwoman Carolyn Maloney, D-N.Y., and Sen. Chuck Grassley, R-Iowa, urged TransDigm Group Inc. to return $20.8 million to the U.S. Department of Defense — money the DOD Office of Inspector General had identified in December as "excess profits" stemming from the company's contracts with the department.

It's not the first time TransDigm, which owns dozens of aircraft...

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