Fight Against Price Gouging on Military Parts Heats Up

Lawmakers say defense contractors are exploiting loopholes on parts’ prices.

Two Democrats who serve on panels that oversee the Pentagon have stepped up their campaign to curb what they call widespread “price gouging” in contracts for military spare parts.

Democratic Sen. Elizabeth Warren of Massachusetts and Rep. John Garamendi of California, both of them members of their chamber’s Armed Services Committee, pressed their case Wednesday in a pair of letters obtained by CQ Roll Call.

Warren and Garamendi expressed outrage that defense contractors are exploiting loopholes so the companies can regularly refuse to provide the Defense Department legally required data to document that their parts’ prices are fair and reasonable on contracts awarded without competition.

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