SSSETOWTF & GK
I would not write off the accountants quite so glibly. At best, the LM cost numbers being tossed around today
- mostly concern the A model
- don't include the propulsion system, which on the B especially is well over budget
- are a "unit recurring flyaway" that has hardly ever been used before
- are valid only if partner and US orders proceed on the schedule established before development was slipped earlier this year
It seems that the current negotiations over the LRIP-4 contract are about risk. The government doesn't want to sign a low-ball contract, only to find two years down the line that the real costs are much higher. LockMart doesn't want to lose money in that event.
Underlying this is the fact that it is not a normal sale. The Pentagon needs the jets and has already invested several tens of billions in the program, and has terminated all alternatives, so whatever the jets end up costing, it can't simply tell LockMart to go pound sand. Fixed price, FPI or whatever is all somewhat irrelevant.
Find a good history of the C-5A program...