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> Clearly SpaceX already won, NASA should just pull the plug on Boeing. That would cost NASA a lot more money than continuing. The contract is task order base
by Tuna-Fish 2y ago
> Clearly SpaceX already won, NASA should just pull the plug on Boeing.
That would cost NASA a lot more money than continuing.
The contract is task order based. Boeing (and SpaceX) get paid for reaching some milestones, but mostly for launching the actual operational missions, of which Boeing is currently contracted for 6. Boeing had to front the development money for the system, and then gets paid back when they actually fly. This is in contrast with the traditional cost+ contracting, where Boeing just tallies costs and gets paid that plus a fixed profit margin.
At this point, Boeing has reached all the milestones and gotten paid for them, but hasn't flown any of the operational missions, and has spent billions more than they've been paid to develop the system. If NASA cancels now without a clear reason listed in the contract, Boeing has a clean case for contract violation against them, and can sue for the spent development money. Delays are not an appropriate reason, so long as Boeing isn't unduly endangering the crew they can just keep trying. But they are not getting paid any money from NASA for any of this, every day that the program continues but they are not launching the actual paid 6 missions, they are just wasting their own money.
- mjevans 2y agoIt's sort of like a game of chicken in that respect... I guess Boeing would have to do the math and figure out that paying SpaceX for 6 ISS missions is a cheaper way of fulfilling the contract?
- Tuna-Fish 2y agoThey don't even have to do that. As I understand it, they freely have the option to keep the money paid for them so far and just inform NASA that they are not flying the 6 operational missions, and shut it down. The reason not to do that is that as stated above, most of the money in the contract is in those operational missions. Even if the contract will lose them money in total, if they think it will cost less to complete starting from right now than what those 6 pay out, it will make economical sense to keep trying.
- 29athrowaway 2y agoThanks for the clarification here. Now it makes more sense.
- PopePompus 2y agoWhy aren't delays an appropriate reason? Is that explicitly in the contracts?