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Old 31st Oct 2014, 18:08
  #46 (permalink)  
LowObservable
 
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KenV's points make more sense if "The Star Spangled Banner" is played in the background, at steadily increasing volume.

One-time MILCON is not a big deal. The total MILCON appropriation for the entire AF in 2015 is $811 million. Enlarging ramps at KC-135 bases, where it is actually necessary, is a one-off cost and is barely a blip in the LCC of a tanker fleet.

Goldplating is not "illegal" as described. A requirement is set, and if you offer more than the requirement and charge more than your competitor, the source selection authority can make a "best value" selection. In Round 1, the AF did not bullet-proof its language, however, so the "best value" choice of the A330 could be overturned.

What actually happened, after that, was that the competition was restructured to specifically exclude credit for exceeding requirements, which turned the deal into a shoot-out over cost. Boeing had a smaller aircraft and an unrealistic cost, and won.
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