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Contractors like Boeing for SLS generally have sweetheart cost+ deals. They have zero incentives to cut costs -- nay, they have an incentive to increase costs
by cryptonector 6y ago
Contractors like Boeing for SLS generally have sweetheart cost+ deals. They have zero incentives to cut costs -- nay, they have an incentive to increase costs because their profits are the "plus".
SpaceX isn't interested in a sweetheart subsidy deal. They are competing. That's why their contracts with NASA are fixed price: it gives SpaceX every incentive to keep costs down so as to maximize profit.
Surprise! SpaceX is doing better than the competition that gets sweetheart deals. It should really not be a surprise to anyone though, but it probably is to some.