An F/A-18 takes off from the aircraft carrier USS Ronald Reagan in the Philippine Sea in 2017. According to a US Department of Defense audit, the US Navy spent around $4 million more than budgeted to repair the radar systems on its F/A-18 Hornet fighter jets. (Benjamin A. Lewis/US Navy)

According to a U.S. Department of Defense audit, the U.S. Navy spent nearly $4 million more than budgeted to repair the radars on its F/A-18 Hornet fighter jets.

The investigation by the U.S. Department of Defense’s inspector general found that Naval Supply Systems Command Weapon Systems Support failed to obtain fair and reasonable prices for 53 percent of the more than 200 parts examined, according to a report released Wednesday.

In total, the parts cost nearly $45 million, the report said.

The report blames the Navy for failing to recognize price fluctuations on each item purchased. Navy officials said they typically review total labor and material costs, looking for price differences from the previous year.

They also said that when contractors prepared a bid, they did not know how many repairs would be needed, the report said.

The IG responded that it was able to identify price differences after asking the contractor for additional information.

Defense contractor Raytheon began repairing the F/A-18 Hornet’s radar systems in 1998. As part of an acquisition in December 2021, Vertex Aerospace assumed responsibility for repair contracts for the aircraft’s AN/APG 65 and AN/APG 73 radar systems from Raytheon.

The following year, Vertex Aerospace merged with Vectrus Systems Corp. and became V2X. Vertex M&S, a subsidiary of V2X, is the sole authorized source for repairing the radars.

The Inspector General’s recommendations to prevent future overpayments included Agree on fair pricing terms for the remaining orders under the agreement and identify differences between actual and proposed costs before completing the remaining delivery orders.

In addition, the Navy should develop a method for uniformly allocating support costs associated with repair items and services and require contractors to use that method, the report said.

The Naval Supply Systems Command disagreed with the recommendation to recover at least $3.93 million and determine whether payments were made above actual costs, saying the situation did not require it, the IG report said.