One of the most interesting contracting stories, IMO, is the USAF Boeing KC 46 Tanker saga. For the first time in living memory the US government imposed a fixed price contract with real deliverables. Boeing undoubtedly figured that they could wiggle out of the consequences of their low bid, but found out to their chagrin that they actually had to take responsibility for their failures. They are now 5.4 billion and counting in the red on this contract.
In a perfect world this would be a wake up call to industry that the government was getting serious about contracting reform and their bids better reflect reality. In the real world Boeing and the other aerospace contractors put on full court press to prevent these kind of contracts in the future and the USAF is now on record that they will not continue with this “failed” contracting model......
They have probably got savvy after awarding the UH-72 Lakota helicopter contract to what was EADS US and is now Airbus Helicopters based on the EC-145 Civilian model, now 450 odd helicopters in and all delivered on budget and on time. Not only that, but where as in the past the US would fund and pay for the development of midlife update and modernisation programmes, these costs are covered by Airbus through their normal development of the Civilian model.
..