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Alec Stapp@alecstapp.bsky.social |
Fixed-price contracts have much better incentives than cost-plus contracts. If Boeing can't make money on fixed-price contracts, then that's a Boeing problem, not a government contracting problem.
2 replies 1 reposts 9 likes
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Dennis Yates 🇺🇸🇺🇦🌊
@dennisyates.ddyates.com
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I was once a witness for the DOJ in a contract termination-for-default case against Boeing. An $8B case, largest in history. They were incompetent and clearly unable to complete work. They settled. Contract re-solicited and awarded to Hughes Aircraft. They finished early and cost less.
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Jonathan Salmans
@salmansjonathan.bsky.social
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The challenge is for unique design contracts is that it's hard to know the level of effort before the contract is done. It is also hard to know the tradeoffs in the design space to define the requirements. So alternatives to fixed price have their place.
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