Planes, Copters. The Pentagon’s inspector general first raised pricing concerns over TransDigm in a 2006 report, followed by the one this year that was released in redacted form in February. Congress to question TransDigm over defense profits exceeding 1,000% In those years, TransDigm also charged $1,443 each for a “non-vehicular clutch disk” that cost $32 to make. Planes, Copters. In those years, TransDigm also charged $1,443 each for a “non-vehicular clutch disk” that cost $32 to make. TransDigm shares have climbed more than 36% this year. The congressional memo said that in one of the examples the Department of Defense paid $1,443 for a nonvehicular clutch disk used in a C-135 transport aircraft that cost TransDigm just $32 to produce, giving TransDigm 4,436% in profit. TransDigm told members that they are primarily a commercial provider and that only about seven percent of their business is with the DoD. The sensational examples in the report included a nonvehicular clutch disk that cost TransDigm $32 to produce and for which the military paid $1,443, and a quick disconnect coupling half that cost $173 to produce and for which the customer paid $6,986.
The Pentagon’s inspector general first raised pricing concerns over TransDigm in a 2006 report, followed by the one this year that was released in redacted form in February. The biggest markup came on a 3-inch “nonvehicular clutch disk” that cost $32 to make, which TransDigm sold for $1,443. It drew 34% of its 2017 sales from defense, up from 24% in 2006.