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Author Topic: The price of each B-21 bomber is likely going up  (Read 472 times)

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Offline rangerrebew

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The price of each B-21 bomber is likely going up
« on: June 24, 2024, 12:20:29 pm »
The price of each B-21 bomber is likely going up
The Air Force has agreed to a higher cost ceiling after Northrop took a loss on fixed-price lots.
AUDREY DECKER | JUNE 24, 2024 10:37 AM ET
AIR FORCE INDUSTRY ACQUISITION
   
The price of the Air Force’s new bomber has been cleared for takeoff.

After taking a loss on the first lots of B-21 Raiders, Northrop Grumman has negotiated a higher cost ceiling on the next 19 aircraft, the company said in a June 18 release.

“Final terms, quantity, and pricing beyond the first 21 aircraft are subject to negotiation. The government and Northrop Grumman have established not to exceed pricing for an additional 19 aircraft. The average not to exceed value for the subsequent lots is above the average unit price of the five LRIP lots,” the company said.

Northrop has lost more than $1 billion on those first aircraft, which are part of five Low Rate Initial Production contracts whose fixed-price clause forces the company to eat cost overruns.

https://www.defenseone.com/business/2024/06/price-each-b-21-bomber-likely-going/397576/?oref=d1-homepage-top-story
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Offline rangerrebew

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Re: The price of each B-21 bomber is likely going up
« Reply #1 on: June 24, 2024, 12:21:49 pm »
Are there any capital purchases the military contracts for that don't go up in price - substantially? :shrug:
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The unity of government which constitutes you one people is also now dear to you. It is justly so, for it is a main pillar in the edifice of your real independence, the support of your tranquility at home, your peace abroad; of your safety; of your prosperity; of that very liberty which you so highly prize. But as it is easy to foresee that, from different causes and from different quarters, much pains will be taken, many artifices employed to weaken in your minds the conviction of this truth.  George Washington - Farewell Address

Offline Smokin Joe

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Re: The price of each B-21 bomber is likely going up
« Reply #2 on: June 24, 2024, 05:38:37 pm »
Ah'm shocked! Shocked, I tell ya!
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