Winston
Lorenzo von Matterhorn
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How to become a multi-millionaire with virtually no effort:
https://news.yahoo.com/special-report-pentagon-deal-russians-big-profit-tiny-202014571.html
Excerpt:
That five-person company, RD Amross, is a joint venture of Russian engine maker NPO Energomash and a U.S. partner, aerospace giant United Technologies. According to internal company documents that lay out the contract, Amross stands to collect $93 million in cost mark-ups under its current multi-year deal to supply the RD-180 rocket engine.
Those charges are being added to the program despite a 2011 Pentagon audit that contested a similar, earlier contract with Amross. That deal would have allowed Amross to receive about $80 million in profit mark-ups and overhead expenses on RD-180 engines, government documents show.
The confidential report of the 2011 audit described the mark-ups and additional charges as improper under U.S. contracting law. Amross, the auditors concluded, was a middleman that did no or negligible work. The audit characterized the $80 million in added costs as unallowable excessive pass-through charges.
A spokesman for RD Amross told Reuters that the company resolved the dispute by reducing its charges under the first contract. Neither Amross nor the Pentagon would disclose the dollar amount of the price cut.
But the documents indicate that Amross later managed to make up for the concessions. In the current deal, Amross is charging the same average total price per engine - $23.4 million that was proposed in the initial contract rejected by the Pentagon auditors.
https://news.yahoo.com/special-report-pentagon-deal-russians-big-profit-tiny-202014571.html
Excerpt:
That five-person company, RD Amross, is a joint venture of Russian engine maker NPO Energomash and a U.S. partner, aerospace giant United Technologies. According to internal company documents that lay out the contract, Amross stands to collect $93 million in cost mark-ups under its current multi-year deal to supply the RD-180 rocket engine.
Those charges are being added to the program despite a 2011 Pentagon audit that contested a similar, earlier contract with Amross. That deal would have allowed Amross to receive about $80 million in profit mark-ups and overhead expenses on RD-180 engines, government documents show.
The confidential report of the 2011 audit described the mark-ups and additional charges as improper under U.S. contracting law. Amross, the auditors concluded, was a middleman that did no or negligible work. The audit characterized the $80 million in added costs as unallowable excessive pass-through charges.
A spokesman for RD Amross told Reuters that the company resolved the dispute by reducing its charges under the first contract. Neither Amross nor the Pentagon would disclose the dollar amount of the price cut.
But the documents indicate that Amross later managed to make up for the concessions. In the current deal, Amross is charging the same average total price per engine - $23.4 million that was proposed in the initial contract rejected by the Pentagon auditors.