PPRuNe Forums - View Single Post - What's the latest news of the V22 Osprey?
Old 5th Dec 2011, 21:55
  #1372 (permalink)  
SASless
 
Join Date: May 2002
Location: Downeast
Age: 75
Posts: 18,290
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The problem with pricing is how it is calculated. Remember the legendary "Hammer", "Ash Tray", and "Toilet Seats" flap?

When one takes the multi-year total package price and tries to do simple division of total cost by aircraft numbers purchased...the per aircraft cost is really huge and has no validity as the resulting number is not representative of the actual cost of the aircraft itself....as it includes spare parts, training, simulators, special tools, admin overhead costs, fees, bonuses, kennel fees for executives and the lot.

If you think that simple math works....read up on the allocation of Overhead Expenses by Defense Contractors and you will gain an education on just what goes into total program costs.

The two year set back of the 53K IOC added Five Million Dollars to the cost per airframe...and if the production run is cut then the cost goes up yet again.

I defy anyone outside the procurement system to correctly calculate the per aircraft cost for any of these aircraft. Me and Google sure aren't definitive sources....and never claimed to be.

The old rule was never fly the "A Model" of anything......and I reckon the rest of that rule would be never "pay for the development costs of the A model of anything" as well.
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