By Tony Capaccio and Laura Curtis | June 12, 2014 12:11PM ET

(Bloomberg) — Boeing agreed to provide Pentagon’s Defense Logistics Agency with $3.2m in parts to settle case alleging company overcharged for spare parts, DLA Director Vice Admiral Mark Harnitchek tells reporters.

Co. will provide “compensation in-kind for contracts we already have”; ‘‘Instead of getting the money back’’ agency is getting ‘‘parts for free,’’ Harnitchek says

Says Boeing has provided 95% of promised parts

NOTE: Pentagon IG in June 2013 recommended agency recover >$13m for overcharges on 1,469 aviation parts, including a $10 device for which Boeing charged $2,286

Boeing officials ‘‘are as concerned as we are about the optics of overpaying for parts,’’ Harnitchek said; ‘‘Neither of us look very good from a stewardship perspective”

Boeing spokesman Paul Guse says co., DLA “have been working together to improve processes and create efficiencies”