A good Trump deal

[NovemberEcho]

Here’s a positive for Trump. In the deal with Boeing for the new AF1, it was a fixed price deal where Boeing is responsible for any cost overruns. This has cost Boeing over $1.1 billion so far rather than the taxpayer. This should be more common place.

Boeing Lost $1.1 Billion on Trump Air Force One Contract; CEO Regrets Deal

Donald Trump had bragged his deal with Boeing for the Air Force One program would save taxpayers more than a billion dollars. It’s cost Boeing more than that.

www.nbcchicago.com

 

[Box hauler]

It almost seems that if you continuously give companies a blank check they’ll find a way to charge you more, who knew. Still not sure how they found a way to take a $400M aircraft and make it cost over $5 billion, regardless of what they do to it.

 

[ahw01]

Correlation is not causation

 

[MFT1Air]

I will agree this specific contract should be a template for government contracts, yes. Affix to Trump <administration>? Okay. I wonder which one of his negotiators put the contract into place. I wonder if it was a standard for all the subcontractors as well and how much Boeing "outsourced" activities to foreign entities?

 

[Wardogg]

Correlation is not causation

Implying that the deal made between the government and Boeing was not Trump's doing, but just happened to happen while Trump was President?

 

[inigo88]

Never forget.

Hypersonic ‘Air Force One’? The USAF is looking into it

The US Air Force has awarded Hermeus Corporation a $1.5 million contract to assess modifying the company's in-development Mach 5 jet into an aircraft for the future Presidential and Executive Airlift fleet.

www.flightglobal.com

 

[ahw01]

Implying that the deal made between the government and Boeing was not Trump's doing, but just happened to happen while Trump was President?

absolutely

 

[NovemberEcho]

Let’s hope the horrendous paint scheme Trump chose will be cancelled at least.

 

[mrivc211]

Here’s a positive for Trump. In the deal with Boeing for the new AF1, it was a fixed price deal where Boeing is responsible for any cost overruns. This has cost Boeing over $1.1 billion so far rather than the taxpayer. This should be more common place.

Boeing Lost $1.1 Billion on Trump Air Force One Contract; CEO Regrets Deal

Donald Trump had bragged his deal with Boeing for the Air Force One program would save taxpayers more than a billion dollars. It’s cost Boeing more than that.

www.nbcchicago.com

It must be nice to be in a business where there is no accountability for cost over runs and the customer will still pay the bill at the end.

 

[mrivc211]

Let’s hope the horrendous paint scheme Trump chose will be cancelled at least.

Do we know when the plane is planned to enter service? If its planned for after 2024, my hunch tells me Biden doesn't want to change the scheme only to lose to Trump in 24' and have Trump changing it right back.

 

[Wardogg]

absolutely

Well as critical as the media was of him in 2018 that sure isnt what they were reporting.

Trump strikes $3.9 billion deal with Boeing for new Air Force One | CNN Politics

President Donald Trump and Boeing have struck a deal over the development of two new Air Force One planes at a price tag of $3.9 billion, the White House and Boeing said Tuesday, and the President has asked for the planes to be ready by 2021.

www.cnn.com

 

[stroboli62]

Good for Trump on fixed price deals

What under the table "Good Ol Boy" deal did Trump get in return from Boeing because these things can go uncontested

Yeah whatever....Age 65 cutoff for all Prez candidates. A business man who thought he could get govt in line and a Lifer who ought be retired out of public office

 

[ahw01]

Well as critical as the media was of him in 2018 that sure isnt what they were reporting.

Trump strikes $3.9 billion deal with Boeing for new Air Force One | CNN Politics

President Donald Trump and Boeing have struck a deal over the development of two new Air Force One planes at a price tag of $3.9 billion, the White House and Boeing said Tuesday, and the President has asked for the planes to be ready by 2021.

www.cnn.com

that's great, but still irrelevant

 

[Wardogg]

that's great, but still irrelevant

Fascinating.

 

[fholbert]

It almost seems that if you continuously give companies a blank check they’ll find a way to charge you more, who knew. Still not sure how they found a way to take a $400M aircraft and make it cost over $5 billion, regardless of what they do to it.

Now standby... That's how some of us make a good living.

 

[Minuteman]

I think it demonstrates that Dennis Muilenburg was a p big goofball to also get rolled by Trump.

For six years he was the head of Boeing Defense, part of that time also as President of the company. Then he became CEO a year before those skeevy MAX certification emails flew around. Some kinda real success culture he brewed-up there with his team.

 

[A Life Aloft]

Let’s hope the horrendous paint scheme Trump chose will be cancelled at least.

Well, at least it won't resemble the Trump Shuttle. lol

 

[///AMG]

There is a lot of misunderstanding of DoD contracts going on here. Fixed price plus fee is pretty normal in the industry. There are a couple macro level problems that get us here, that have affected many other programs too.

1) The acquisitions system rewards the most unrealistic bids, as long as they are the lowest. There is little to no actual intelligent analysis done on the DoD side about whether a bid is even feasible. I mean, certainly there is some, but this contract type means it almost doesn't matter.

2) Contractors are forced to fudge numbers or outright lie about their anticipated costs if they want to win a contract. It is more complicated than that, but this is a major theme.

In the end, anything costs what it ends up costing. But we just play pretend for years until the true cost reveals itself, and the program is X amount of days/months/years behind schedule. Name any major program of record in the last 20-30 years, and this will largely hold true.

Which is to also say that the DoD is always eager to spend billions to save millions in total costs.

 

[fholbert]

Let’s hope the horrendous paint scheme Trump chose will be cancelled at least.

Sounds like a 1.1 billion dollar change order to me.

 

[guywhoflies]

There is a lot of misunderstanding of DoD contracts going on here. Fixed price plus fee is pretty normal in the industry. There are a couple macro level problems that get us here, that have affected many other programs too.

1) The acquisitions system rewards the most unrealistic bids, as long as they are the lowest. There is little to no actual intelligent analysis done on the DoD side about whether a bid is even feasible. I mean, certainly there is some, but this contract type means it almost doesn't matter.

2) Contractors are forced to fudge numbers or outright lie about their anticipated costs if they want to win a contract. It is more complicated than that, but this is a major theme.

In the end, anything costs what it ends up costing. But we just play pretend for years until the true cost reveals itself, and the program is X amount of days/months/years behind schedule. Name any major program of record in the last 20-30 years, and this will largely hold true.

Which is to also say that the DoD is always eager to spend billions to save millions in total costs.

See "Fighting Vehicle, Bradley"