McCain’s contracting proposal makes no sense

September 28, 2008 by Dagpotter · Comment
Filed under: Congress, Contract Awards, Department of Defense, Federal Budget Process, S&T, development program, production program 

In the first Presidential Debate on Friday, Senator McCain restated one of his favorite reforms of government spending - require Firm Fixed Price (FFP) contracts for all work. Currently FFP contracts are used to buy hardware and services when the price and schedule are known. The contractor agrees to this as they will make profit on each unit sold. Cost Plus contracts are used for development or for things where the cost is not known. During World War II Cost Plus contracts were used almost exclusively and some abuse did occur. For R&D contracts it is hard to do a FFP as the total time and cost required to develop a system or new capability has often proved to be beyond the estimation capability of the best government or contractors can do. Senator McCain’s proposal will not work, as you will have a situation where no one will bid on the work as they know they won’t make any money on it.

See FCW.com for the story.

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Hillary accused of hypocrisy on KC-45

May 4, 2008 by Dagpotter · Comment
Filed under: Boeing, Contract Awards, EADS, GAO, Lockheed Martin, Northrop Grumman Corp., Protest, commercial aviation, logistics 

This article explains why some feel that Democratic candidate for President, Hillary Clinton, has been accused of double standards on the KC-45 contract. The basic argument is that she is very supportive of the VH-71 contract for the new Presidential helicopter. This is also a foreign aircraft teamed with a US integrator, here Lockheed Martin. The fact that the final assembly is done in Oswego, NY as compared to Alabama has nothing to do with it she says. On the KC-45, like many Democrats, she has taken a protective stance. While not as outspoken as Barack Obama, she has made noises of disapproval of the selection of EADS over Boeing. Senator McCain, due to his rather role in the whole matter, supports the Air Force’s position. More to come, I am sure.

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Loren Thompson on why Boeing lost

March 4, 2008 by Dagpotter · Comment
Filed under: Boeing, Contract Awards, EADS, Northrop Grumman Corp., U.S. Air Force, commercial aviation, logistics 

In this article in The Seattle Times, noted aerospace analyst Loren Thompson explains why Boeing lost to Northrop-Grumman and EADS. Basically, the 767 wasn’t competitive. Read more

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