Monday, July 14, 2008

Cost overruns.


Another program has had a Nunn-McCurdy cost overrun. The Armed Reconnaissance Helicopter now costs $9 million from $5.5 million per unit.

I have a solution.

ANY cost estimate from a military contractor?... DOUBLE IT.

That is closer to the real cost. Use that to figure out if you really want the system.

STOP LYING! The only way that almost every single program can be off by a factor of 2 is if they lie. Faking lower costs just to win a contract is unacceptable. We need to hold them accountable and maybe make an example out of a few companies.

1 comment:

Charles Domercant said...

I wonder if there is a specific area in the budget that is always underestimated? Labor? Materials? Man-Hours? It seems to me that there is no system of punishment other than a slap on the wrist and a 'see you next bid' approach!