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.”
Removed by mod
I don’t think they suck at forecasting…I think they are probably exceptional at forecasting but willfully lie about project costs when submitting bids for projects in order to come under the competition and win the contract. There doesn’t seem to be any penalties for this, so why would they stop?
That happens all the time. I went through several government contracts where a company would come and under bid the current contract by a significant amount, win the bid, offer the current contractors 3/4 of what they were being paid and fill in the rest with new hires. There is no continuity between contracts so unless a bunch of the old contractors took a pay cut to stay on they would come in and start from scratch with all new processes and procedures and absolutely slow down productivity for all those they were supposed to be providing support.
If they’re anything like other DOD contractors they make empty promises and straight up lies to get bids on contracts that they can’t deliver on time on. They know they will fail these timelines but it makes them look good for that quarter so it doesn’t matter to them.
The forecasts for FFP projects have competitive forces pushing them down. Many times they will underbid to win than hope everything goes perfect or they can find a way to weasel out of it.
Then perish.
Oh, very good Worf. Eat any good books lately?
I recently consumed a copy of Martok’s Enchiridion of Klingon Fashion. It was tasteful.
It sounds like Boeing is shit at forecasting. Maybe hire better analysts.
Neeeext
Zombies? In my capitalism?
I bet there are some other airplane makers that can.
