It’s not a usual cost-plus contract, to my knowledge, the government hasn’t funded it beyond the initial half billion. Boeing is taking a bath on this capsule development, needs the crew contracts to recoup, and that’s why I don’t believe they will abandon it.
They’re more than $1.5 billion in hole on this contract, but they must be doing some math on how many future contracts they might miss out on if they back out.
I disagree, they have so much time and money investment into starliner, it has to fly again. They can’t throw out 15 years of development.
Sunk cost fallacy. Fuck Boeing, why should the government keep funding this?
It’s not a usual cost-plus contract, to my knowledge, the government hasn’t funded it beyond the initial half billion. Boeing is taking a bath on this capsule development, needs the crew contracts to recoup, and that’s why I don’t believe they will abandon it.
This whole thing makes me feel so sad.
I don’t know. Part of me feels a bit of glee that Boeing is having to foot the bill for their own incompetence.
They definitely should throw away 15 years worth of development if they are unable to deliver. Any more money spent would be wasted
15 years of development, and they didn’t manage to build rubber seals that seal.
They’re more than $1.5 billion in hole on this contract, but they must be doing some math on how many future contracts they might miss out on if they back out.
Don’t throw good money after bad (or the sunk-cost fallacy).
Though it’s not like all that development is lost. They retain all they’ve learned and developed. Just costs a bit to store the data.