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originally posted by: Zaphod58
a reply to: 35Foxtrot
There needs to be some allowance for overruns, but they need to get spending under control. We can't have more programs that start out at $55M per airframe, and end up at $110M or more per airframe.
originally posted by: DeadSeraph
a reply to: NTellect
I saw this same commercial this evening. I thought it was quite strange. Normally companies spend money on tv commercials to advertise a product, so they can make more money from the public when that same product is purchased in greater numbers. Northrop Grumman doesn't sell anything to the public, they sell products to the government. So why are they advertising to the public? Seems strange to me. It's not like they are saying "we're hiring", either.
originally posted by: Phage
a reply to: Zaphod58
That could pretty well kill a viable project though. Unless there are contract clauses which force the prime to absorb overruns (risky on the part of the contractor). It doesn't work in the construction business and it's hard to imagine it working in something that is, in the most part, R&D.
The usual approach would be to limit markups on overruns. Reduce opportunities for profiting on change orders. The prime doesn't eat the cost, but they don't benefit either.