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In reply to the discussion: Pentagon contractor's 9,400% profit on a half-inch metal pin is challenged [View all]DeminPennswoods
(15,285 posts)is the Defense Logistics Agency (DLA). Their mission is to manage common hardware like nuts, bolts, screws and so on that are ordered in high quantities. Similar to the things you find at Home Depot, Lowe's, corner hardware store. It's been 20-25 ago, DoD decided DLA could also manage more complex and unique items and the services were required to transfer these parts to DLA.
I would bet dollars to donuts that the IG looked at the common hardware with the nomenclature or stock class of pins, averaged their procurement prices and came up with a baseline "should cost" number. Further, I'd bet the IG took no note of the potential unique specs for these items in making their calculation of how much "overpayment" there was. The fact is, if these were easily made items, there'd have been other bidders at lower prices, which, evidently, there weren't.