> complete failures on their fixed price contracts
In fact, Boeing has stated they will no longer bid for fixed price contracts at all. They are institutionally incapable of making money by simply selling a product to the government for a price agreed to up front. Other companies can, but Boeing cannot. It's a rotten company.
Cost-plus contracts should be emergency measures for wartime only. They should be illegal otherwise. They hurt our country, not just by getting the government scammed by greedy corporations, but also by ruining companies like Boeing that should otherwise be competent and valuable assets to the country.
The government is a ridiculous customer. The military especially so. Folks rotate every 18 months or so, each one coming in looking to “prove” themselves. Invariably they create rework and delays while they come up to speed, and by the time they come full circle and realize how much waste they’ve created, they’re off to the next gig, leaving their mess behind for the next person to eventually discover.
In fact, Boeing has stated they will no longer bid for fixed price contracts at all. They are institutionally incapable of making money by simply selling a product to the government for a price agreed to up front. Other companies can, but Boeing cannot. It's a rotten company.
https://arstechnica.com/space/2023/10/boeing-says-it-cant-ma...
Cost-plus contracts should be emergency measures for wartime only. They should be illegal otherwise. They hurt our country, not just by getting the government scammed by greedy corporations, but also by ruining companies like Boeing that should otherwise be competent and valuable assets to the country.