Boeing allegedly overcharged the military 8,000% for airplane soap dispensers
The government also isn’t sure if it paid 'fair or reasonable' prices for another 25 spare part orders.
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Stories like this are sometimes more complicated than they appear. The infamous examples of $500 hammers, for example, were anti sparking hammers for working around flammables or munitions, hence requiring special materials, certification, and low production runs.
For this case, we have liquid hand soap dispensed by a pump. Pumps require a sealed vessel. Unlike commercial planes, military planes are required to anticipate prolonged operation with an unpressurized cabin. At max altitude of a C17, atmospheric pressure is only 20% of sea level. Off the shelf dispensers are unlikely to be designed to withstand that pressure difference, let alone function normally. In a high demand environment like aerospace, even apparently minor failures like an exploding soap container needs to be taken seriously due to the possibility of unexpected cascading failures. Why not use bar soap, then? Unfortunately this too has complications, like not being able to be securely mounted, liquid soaps having superior hygiene and cross contamination characteristics, and necessity for military standardized soap, sometimes designed for heavy metal, eg lead, which is likely if the cargo were munitions.
This unusual set of requirements unlikely to be seen outside the military context, so whether designed by Boeing or off the shelf the unit would likely have low quantity manufacturing runs, significantly increasing per unit costs. Combine that with the necessary certifications and the per unit costs balloon even further.
While a soap dispenser having an 80x markup seems absurd, it might be more reasonable than it seems at first glance. To be clear, there absolutely is military contractor graft. I just don't expect even a $10,000 soap dispenser would be a substantial proportion if it even within the C17.
You take all those factors THEN double the cost. Government contracting in a nutshell.
Your standard one-way-valve/flexible-tube dispenser, for example, would leak quite horribly at altitude (or burst), neither of which is desirable.
Let's not also forget the fleet of passenger aircraft for distinguished persons, maintained by the military, with everything custom made and embroidered with presidential seals and produced in the USA and run through vigorous inspection to prevent microphone or pagers or something inside your soap dispenser.
The infamous examples of $500 hammers, for example, were anti sparking hammers for working around flammables or munitions, hence requiring special materials, certification, and low production runs.
https://en.wikipedia.org/wiki/Packard_Commission
I'm not one to praise Reagan, but the Packard Commission picked off some incredibly low hanging fruit. The $435 hammer ($1235 adjusted for inflation) was a boondoggle by any standard. That it was overcharged by a factor of 2-3x instead of the sloppy journalism implying a 100x markup doesn't refute the fact that these contracts were corrupt on their face.
While a soap dispenser having an 80x markup seems absurd, it might be more reasonable than it seems at first glance.
Either the equipment could be purchased wholesale much cheaper (as was often the case even for industrial grade goods) or the production should have been insourced to the department that had a bespoke demand.
The fact that Boeing exists at all is absurd, given the degree to which government monopsony and security concerns force them to act as a department within the public sector. But the extortionary rates illustrate the fraud that is the reason these public-private relationships exist.
