Wednesday, April 26, 2017

A plant move and labor cost made the CH-53K explode in price?

via Defense News.
But those figures don’t tell the whole story, Vanderborght said.

Two factors outside of the government’s control have driven the cost growth on the program: the increasing costs of labor and Sikorsky’s move of the helicopter’s final assembly line from Florida to Connecticut, he said. Under the Marine Corps’ current cost-type contract agreement with the company, the government is left footing the bill for those added expenses. 

As the CH-53K moves from its research and development phase to procurement, Vanderborght believes he will have more opportunities to hold Sikorsky responsible for cost growth. The service intends to switch to a fixed-price contract during production, which will offload some risk onto its contractors. 
Story here.

I'm calling bullshit!

I'm calling massive bullshit!  If I didn't know better I'd suspect the USMC is subsidizing LM by allowing the price of the CH-53K to rise to ridiculous levels. I can't prove it but a SERIOUS audit needs to be conducted.

But let's take this at face value.

A contractor can give their employees a pay raise AND move an assembly plant and the US government is left footing the bill?


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