←back to thread

Boeing overcharged the U.S. Air Force 8,000% above market for soap dispensers

(www.reuters.com)
152 points lr0 | 2 comments | 21 Nov 24 04:19 UTC | HN request time: 0.41s | source
Show context
oivey ◴[21 Nov 24 08:00 UTC] No.42202104[source]▶
It is strange how much apologia there is for Boeing in this thread. Why does it have to be somehow the government’s fault or somehow reflective of the actual cost to make the dispensers? Why should Boeing get the benefit of the doubt, especially given their complete failures on their fixed price contracts (Starliner, Air Force One, KC-46 tanker)? They’re so unable to control costs they’re talking about never taking fixed price contracts ever again. Given those failures, it seems safe to assume they’re screwing taxpayers on their cost plus contracts.
replies(6): >>42202119 #>>42202209 #>>42202477 #>>42202746 #>>42203237 #>>42203437 #
1. lupusreal ◴[21 Nov 24 10:12 UTC] No.42202746[source]▶
> 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.

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.

replies(1): >>42204266 #
2. numbsafari ◴[21 Nov 24 13:49 UTC] No.42204266[source]▶
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.