this post was submitted on 26 Oct 2023
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Boeing says it can’t make money with fixed-price contracts::"Rest assured we haven't signed any fixed-price development contracts, nor intend to."

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[–] [email protected] 58 points 1 year ago (1 children)

Jeez, if you can't make money off of defense industry contracts, you should probably just hang it up.

[–] [email protected] 26 points 1 year ago* (last edited 1 year ago) (2 children)

They can, they just use cost-plus contracts so they make money no matter how far off schedule or budget they end up.

[–] [email protected] 6 points 1 year ago* (last edited 1 year ago)

Doing work with government, I understand why - ten billion different stakeholders to wrangle, strained budgets (probably not as big of an issue in defense but rampant throughout the rest of gov't), lawmakers changing things mid-project that have a material effect on how the project is carried out, and endless redtape throughout the process. I don't propose FF for gov projects either because inevitably they violate our assumptions by not getting their shit in order which kills the timeline, adds a ton of overhead, and results in a change order anyway which then just starts the whole process of approvals all over again.

[–] [email protected] 3 points 1 year ago (2 children)

I was under the impression that those sweetheart deals were getting hard to come by, but I don't work bids.

[–] [email protected] 5 points 1 year ago

There's still a few out there. Take Clear for example, the subscription line skipping service that works alongside TSA.

Somebody's palms got heavily greased to allow this company to thrive in the airport security space.

[–] [email protected] 2 points 1 year ago

Admittedly, it was quite a while ago that I had anything to do with government contracting, so you could be right.