A group of U.S. senators, led by Bernie Sanders (I-VT), asked the Pentagon to launch an investigation into price gouging by military contractors after a CBS News probe earlier this week that confirmed that private corporations are drastically overcharging the Department of Defense (DoD) for weaponry and other equipment.

"Lockheed Martin, Boeing, Raytheon, and TransDigm are among the offenders, dramatically overcharging the Department and U.S. taxpayers while reaping enormous profits, seeing their stock prices soar, and handing out massive executive compensation packages," said the letter written by Senator Sanders, Elizabeth Warren (D-MA), Chuck Grassley (R-IA), Mike Braun (R-IN) and Ron Wyden (D-OR).

"These companies have abused the trust government has placed in them, exploiting their position as sole suppliers for certain items to increase prices far above inflation or any reasonable profit margin." 

In March, Deputy Defense Secretary Kathleen Hicks announced the largest Pentagon budget ever: $842 billion, with almost half going to defense contractors' pockets. 

The five senators' letter, sent to Secretary of Defense Lloyd Austin, also cited that in 2020, the Defense Department's Office of Inspector General reported that roughly 1 in 5 of its ongoing investigations were related to procurement fraud. 

Experts told the CBS News program 60 Minutes that military contractors overcharge the Pentagon on almost everything the DoD buys each year.

Shay Assad, now retired after rising to become the defense department's most senior and awarded contract negotiator, elaborated in the program that the Patriot weapons system was one example. 

In 2015, Assad ordered a review and Army negotiators discovered Lockheed Martin and its subcontractor, Boeing, were grossly overcharging the Pentagon and U.S. allies by hundreds of millions of dollars for Patriot PAC-3 missiles. After the review, they issued a follow-on contract that saved the department $550 million.

The 60 Minutes report also pointed out that Raytheon, where Assad was a top executive before going to work at the Department of Justice, made "unacceptable profits" from the Patriot missile defense system by dramatically exaggerating the cost and hours it took to build the radar and ground equipment.  

Both Raytheon and Boeing had stated that they negotiated and worked with the government in compliance with Federal Acquisition Regulations and all other applicable laws.

(With input from agencies)