Congressional records for FY13: the Air Force paid an average of $380 million for each national security launch, while subsidizing ULA's fixed costs more than a billion dollars a year even if they never launch. SpaceX's price was well under $100 million.
"the Air Force paid an average of $380 million for each national security launch"
Had SpaceX been awarded the missions ULA received under its recent non-competed 36-core block buy, he said they would have saved taxpayers $11.6 billion.
"We would have saved the taxpayers $11.6 billion"
When a competitive environment exists, the government should use firm fixed-price FAR Part 12 contracts that properly incent contractors to deliver on time and on budget, and eliminate the billion-dollar annual subsidy to ULA.
"the government should use Firm fixed price FAR part 12 contracts"
As a country we decided competition and the free market are good and monopolies are not. From the point Boeing and Lockheed's launch businesses stopped being competitors, the costs doubled.
"the costs doubled since then"
Fixed-price competition is the better way to go when there is competition. Cost-plus after a competition lets companies raise prices as costs grow. Mission-unique increments could be cost-plus; the vast majority of the contract should be fixed price.
"fixed price competition is the, the better way to go"
He said NASA's space-station resupply contracting — two competitors, fixed-price, hardware-oriented milestones, recompete if one fails — is a great model that should be adopted throughout government.
"I think it's a great model that frankly should be adopted throughout government"
As soon as you make something a cost-plus contract you incent the contractor to maximize costs. Change to competitive commercial bids, at least two competitors, concrete milestones (PowerPoint does not count), and be prepared to fire one and recompete. NASA already did this with commercial cargo.
"as soon as you make something a Cost Plus contract you're incanting the contractor to maximize the costs of the program"
He calls for class action lawsuit reform, saying bad suits effectively tax consumers.
"I mean we desperately need class action lawsuit reform in the United States."
Last updated: 2023-07-14 (newest answer).
