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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrillion-Dollar Jet Has Thirteen Expensive New Flaws
By David Axe Email Author December 13, 2011
The most expensive weapons program in U.S. history is about to get a lot pricier.
The F-35 Joint Strike Fighter, meant to replace nearly every tactical warplane in the Air Force, Navy and Marine Corps, was already expected to cost $1 trillion dollars for development, production and maintenance over the next 50 years. Now that cost is expected to grow, owing to 13 different design flaws uncovered in the last two months by a hush-hush panel of five Pentagon experts. It could cost up to a billion dollars to fix the flaws on copies of the jet already in production, to say nothing of those yet to come.
In addition to costing more, the stealthy F-35 could take longer to complete testing. That could delay the stealthy jets combat debut to sometime after 2018 seven years later than originally planned. And all this comes as the Pentagon braces for big cuts to its budget while trying to save cherished but costly programs like the Joint Strike Fighter.
Frank Kendall, the Pentagons top weapons-buyer, convened the so-called Quick Look Review panel in October. Its report 55 pages of dense technical jargon and intricate charts was leaked this weekend. Kendall and company found a laundry list of flaws with the F-35, including a poorly placed tail hook, lagging sensors, a buggy electrical system and structural cracks.
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http://www.wired.com/dangerroom/2011/12/joint-strike-fighter-13-flaws/
Turbineguy
(37,319 posts)a banker's bailout!
MrScorpio
(73,630 posts)But their business model has changed drastically from the days when they did do such a thing
.
It's called the "Cost-Plus Contract".
"An agreement to pay a company for a job based on the amount of money used to buy the materials required to complete that job plus an added payment. A cost-plus contract fully reimburses a contractor for the cost of materials and then adds additional money to arrive at the total cost of the job. Cost-plus contracts are commonly used in research and development activities, where it is difficult to determine in advance how much a job should cost. For example, the U.S. government has agreed to cost-plus contracts with military defense companies that are developing new technologies for national defense.
Investopedia explains 'Cost-Plus Contract'
Cost overruns are a major concern with cost-plus contracts, since all costs are reimbursed and the additional fee may already be known in advance. However, this problem can be mitigated or avoided if the contract is structured properly. For example, the contract can offer an incentive fee for saving money on materials, or the contract can limit the amount of money that can be spent on materials."
Read more: http://www.investopedia.com/terms/c/cost-plus-contract.asp#ixzz1gSUcCiWV
For defense contractors, Cost Plus is a license to print money
Tax payer money.
joshcryer
(62,269 posts)If private contractors had a flat fee then they'd think twice about trying to implement some absurd, over engineered designs.
leveymg
(36,418 posts)Less stealthy than promised, an overweight and underperforming aircraft. The Russians and Chinese will have something almost as capable and way cheaper to offer on the market by the time this thing's ready for roll-out. The US is going toward drones.
The F-35 is already obsolete.
neverforget
(9,436 posts)they really need this jet? No but it does keep the MIC happy.