Nelson testifies cost-plus contracts have been a “plague” on NASA

Re:Nelson testifies cost-plus contracts have been a “plague”... by teruakohatu on Wednesday May 04, 2022 @02:59PM (#31264459)

> NASA can pay a fixed cost equal to the expected cost of the project

Sure they can, but when they decide to tweak the project the company can tell them "no, that sounds risky".

So what will happen is the contract will end up stating something like all adjustments are priced at cost plus... and NASA is back at square one.

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Re:Nelson testifies cost-plus contracts have been a “plague”... by gpm on Wednesday May 04, 2022 @03:34PM (#31264805)

You don't get to change the deliverables of cost plus contracts without re-negotiation either. That's not the risk that is being avoided here, the risk is that the company is going to decide to ask for more money for the same service they initially promised.

For example with Boeing's recent starliner tests, they would be asking for more money to fly the orbital flight test that they initially promised, because they fucked it up the first time.

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