"Risk remains that we may record additional losses in future periods." //

Boeing announced another financial charge Wednesday for its troubled Starliner commercial crew program, bringing the company's total losses on Starliner to $1.6 billion. //

These losses have generally been caused by schedule delays and additional work to solve problems on Starliner. When NASA awarded Boeing a $4.2 billion contract to complete development of the Starliner spacecraft a decade ago, the aerospace contractor projected the capsule would be ready to fly astronauts by the end of 2017.

It turns out the Crew Flight Test didn't launch until June 5, 2024. //

When NASA selected Boeing and SpaceX to develop the Starliner and Crew Dragon spacecraft for astronaut missions, the agency signed fixed-price agreements with each contractor. These fixed-price contracts mean the contractors, not the government, are responsible for paying for cost overruns. //

It's instructive to compare these costs with those of SpaceX's Crew Dragon program, which started flying astronauts in 2020. All of NASA's contracts with SpaceX for a similar scope of work on the Crew Dragon program totaled more than $3.1 billion, but any expenses paid by SpaceX are unknown because it is a privately held company.

SpaceX has completed all six of its original crew flights for NASA, while Boeing is at least a year away from starting operational service with Starliner. In light of Boeing's delays, NASA extended SpaceX's commercial crew contract to cover eight additional round-trip flights to the space station through the end of the 2020s. //

cyberfunk Ars Scholae Palatinae
12y
824
Blaming fixed price contracts is rich. They're basically admitting incompetence by blaming the cost structure they agreed to.. either because they agreed to it, or because they can't properly estimate cost and deliver quality product on budget. Either way they look like idiots. I'm glad they're holding the bag this time and not the taxpayer. //

BigFire Ars Scholae Palatinae
3y
985
SpaceX will not bid on Cost Plus contracts because the company isn't setup with the kind of extra layers of auditing to justifying everything that will trigger the cost overrun payments. Frankly Boeing Space isn't setup to do anything other than Cost Plus (witness ISS and SLS center core). Nevermind the same ballpark, they're not even playing the same sports, quoting Jules Winnfield from Pulp fiction. //

Dachshund Smack-Fu Master, in training
4y
99
You could see this shift happening within Boeing a little over two decades ago. I had the privilege of learning from some of the last grey beards whose work had given Boeing their stellar reputation before they retired. Those grey beards were worn thin and got zero respect from the hot shot, tassel loafer MBAs hustling them to do things “better, faster, cheaper”.

Internally we knew it was all going to hell, we just weren’t sure when the public would see it for themselves. I thank the space exploration Gods for SpaceX - if it weren’t for them Boeing and every other crook company could keep playing the “space is hard” card and the cost plus buffet open. //

Transmission Integrity Seniorius Lurkius
5y
8
Subscriptor

RickVS said:
The bean counters deserve this. If instead of shareholder value they had focused on top-notch engineering, they probably would have already flown crew to the ISS at least a couple of times.

And as a result it would probably have been cheaper/profitable. //