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You'd have to rebid it, and who would take it? A lot of these are "cost plus" contracts (the government pays the cost + a fixed % profit, and bonuses for meeti
by acomjean 11y ago
You'd have to rebid it, and who would take it?
A lot of these are "cost plus" contracts (the government pays the cost + a fixed % profit, and bonuses for meeting delivery dates). This has been railed against as wasteful compared to the private industry [1]
This is some of the thought process
(from article:)
"I've talked several times this year about the importance of having mature technology before you go into production," Thornberry said. "A lot of what happens with cost-plus situations is the technology's not mature so you don't know what it's going to cost because you haven't invented it yet. That's exactly what we're trying to get away from."
So the more excuses the companies make the more money make (the spec changed..), as long as you can get someone to sign off on it. The cynic in me notes that a lot of these companies have former military heads as presidents.
[1]http://www.defensenews.com/story/breaking-news/2016/02/25/mccain-lrsb-air-force-bomber-block-northrop-boeing-lockheed/80921324/ http://www.defensenews.com/story/breaking-news/2016/02/25/mc...