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> 2. Essentially a cost plus (or cost even) program. This is really the only problem. Because the government was the only buyer - no one in their right mind w
by onlyrealcuzzo 2y ago
> 2. Essentially a cost plus (or cost even) program.
This is really the only problem.
Because the government was the only buyer - no one in their right mind would supply unless a ridiculously cushy contract is in place.
You're going to massively overpay if you're the only buyer in a new industry that requires insane CapEx and is high risk.
- bumby 2y agoThat’s part of the plan though. With high risk nascent industries, the govt is often the only customer who can bear that risk. It was the same dynamic that ushered in aerospace; it was mainly just a hobby industry until the Army offered a lucrative contract.