“It (Boeing) blew through an original estimate of $962 million in 2017, and the projected price tag for the work through 2025 is now $2.8 billion”. - with no deliverable. I am most definitely in the wrong business.
Well, the Chinese Communists do one thing correctly …
Where are those Nazi Space Engineers when you need them?
Yeah. While WE wait for that Starliner spaceship, I have a bridge to sell and it will cost a LOT less than the cost to NASA for a day…
That’s “private equity math” (not to be confused with woke equity, though exacerbated by it). C’mon man . . . without cost overruns, how will we generate fees for our friends?! There’s also a dose of “milkmaid math” here: grift, graft, money laundering, and black-budget spending through a government contractor sitting at the udders of the biggest cash cow on the planet – the U.S. Treasury.
Hmm, $1.8 billion you say? Yep, the books balance perfectly.
I would expect at least half of that cost increase is due to the falling value of the dollar. Another big portion could easily be ‘scope growth’ (the work or technical requirements have expanded beyond what was originally contracted for). I’m not making excuses for any big company and don’t know the specifics of this effort but know that any LONG project has multiple cost schedule and technical risks that can drive over-runs. Value of the currency is a big one and is completely outside the control of the people running the project.