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Those contracts are put out for competitive bids. Profit margins for defense contractors aren't very high. The prices are driven by a combination of strict requ
by nradov 1y ago
Those contracts are put out for competitive bids. Profit margins for defense contractors aren't very high. The prices are driven by a combination of strict requirements, lack of economies of scale, and legal compliance with government mandated processes.
- nine_k 1y agoWhy, yes, competition has been stifled like 30 years ago, because the US was dominating the world anyway, or so the administration was thinking: https://en.wikipedia.org/wiki/Last_Supper_(defense_industry) https://en.wikipedia.org/wiki/Last_Supper_(defense_industry)
- nradov 1y agoConsolidation of defense prime contractors was inevitable due to budgetary realities and the escalating complexity of major programs. It's unlikely that keeping a bunch of small, weak companies around would have produced better results for the military or taxpayers.