Sen. Elizabeth Warren (D-Mass.) is aiming at major defense contractors, calling out exorbitant maintenance costs and pushing for a bipartisan law that would grant the U.S. military the legal right to fix its own equipment.
The “$47,000” Knob
During a recent Senate Armed Services Committee hearing, Warren highlighted a glaring example of taxpayer waste involving Black Hawk helicopters, which are manufactured by Lockheed Martin Corp.‘s (NYSE:LMT) Sikorsky.
She pointed out that a small navigational knob frequently breaks, which the Army could theoretically replace for a mere $15. However, strict vendor lock-in prevents military mechanics from doing the work.
“Because the Army doesn’t have the right to repair, the whole helicopter goes offline, and the contractor charges $47,000 to replace the entire screen,” Warren stated. “Let that sink in: $15 or $47,000.”
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