Boeing is the second largest contractor to the Pentagon so the cheating has cost the US millions of dollars.
The scheme was uncovered in the latest report from the military inspector general.
Bloomberg got its hands on the report which states Boeing charged the US for brand new helicopter parts but "primarily installed used parts instead."
It’s believed the overcharging had topped $16 million for those parts alone.
There is also proof that the government paid for parts that were not installed. Those parts were later used by Boeing for their own use at a later date.
It’s important to note this isn’t the first instance of Boeing sticking it to Uncle Sam.
Instead, it’s the fourth time something like this has been uncovered in the last 60 months.
In June the Pentagon was charged nearly $14 million for a parts order. That order was for bearing sleeves that cost $10 each. The price paid by our tax money? $2,286 EACH.
The report concludes that the military doesn’t possess "the technical expertise" to negotiate with, or spot check the contractor.
For its part Boeing discounts the report saying it "disagrees with the IG's conclusions" and claims to be "fully compliant" with all government policies.