« Updates to POGO's Federal Contractor Misconduct Database: Blackwater USA and Naval Maneuvers | Main | Morning Smoke: "If FOIA Is the Yardstick for Openness in Government, Then We Haven't Gotten Very Far" »

Mar 17, 2011



This is what happens when you pay a company profit on development. The development takes longer and longer and costs more and more. At this point in the F-22 development program they were trying to hold the total program cost constant by converting production funds into development funds. I'm sure that will come next. The contractor doesn't care if they ever build another F-35. If they could end the program with the last development dollar they could possibly squeeze from the US taxpayer, they'd be just as happy. They don't make as much money off production as they do development due to the risks being much higher in production and the profit margin being very small to begin with (as a percentage) anyway.

We actually would have been better off from a cost and schedule point of view if we'd had Boeing and Lockheed develop both of the JSF airplanes all the way to production as well as both engines. As it is now, there is no incentive for Lockheed to ever finish that design. Finishing means less money in their pocket, and they are all about money. We know that, so why don't we provide them with an incentive to give us good weapons on time and on budget instead of giving them an incentive to screw us and then stand there wondering why they did?

The comments to this entry are closed.