Lockheed's JSF Costs to Rise $45 Billion

[Henry J Cobb]

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=4756042
> In a report to Congress, the Pentagon said JSF costs were rising due
> to increasing contractor labor and overhead costs and a delay in the
> start of procurement from 2006 to 2007, as well as the addition of a
> new optical tracking system.

This isn't the first time Lockmart has had runaway costs.

http://federaltimes.com/index.php?S=2790447
> So Pedeleose took his concerns to the Defense Criminal Investigative
> Service, which concluded, in a November 2001 report, that Lockheed’s
> prices were “based on cost and pricing data that was known to be false
> and purposely overstated.”

-HJC
How do you get runaway labor costs when unemployment is so high?

[John Cook]

On Mon, 05 Apr 2004 18:53:23 -0700, Henry J Cobb > wrote:

>http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=4756042
> > In a report to Congress, the Pentagon said JSF costs were rising due
> > to increasing contractor labor and overhead costs and a delay in the
> > start of procurement from 2006 to 2007, as well as the addition of a
> > new optical tracking system.
>
>This isn't the first time Lockmart has had runaway costs.
>
>http://federaltimes.com/index.php?S=2790447
> > So Pedeleose took his concerns to the Defense Criminal Investigative
> > Service, which concluded, in a November 2001 report, that Lockheed’s
> > prices were “based on cost and pricing data that was known to be false
> > and purposely overstated.”
>
>-HJC
>How do you get runaway labor costs when unemployment is so high?


Interesting the Dollar is weaker against other currencies, so the non
US suppliers are being priced out of the contracts, this may have
something to do with it, no cheap labour.

But if too much non US content is lost will those non US companies
jump ship.

It will need a fantastic balancing act to get this right..

Cheers
John Cook

Any spelling mistakes/grammatic errors are there purely to annoy. All
opinions are mine, not TAFE's however much they beg me for them.

Email Address :-
Spam trap - please remove (trousers) to email me
Eurofighter Website :- http://www.eurofighter-typhoon.co.uk

[Kevin Brooks]

"John Cook" > wrote in message
...
> On Mon, 05 Apr 2004 18:53:23 -0700, Henry J Cobb > wrote:
>
> >http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=4756042
> > > In a report to Congress, the Pentagon said JSF costs were rising due
> > > to increasing contractor labor and overhead costs and a delay in the
> > > start of procurement from 2006 to 2007, as well as the addition of a
> > > new optical tracking system.
> >
> >This isn't the first time Lockmart has had runaway costs.
> >
> >http://federaltimes.com/index.php?S=2790447
> > > So Pedeleose took his concerns to the Defense Criminal Investigative
> > > Service, which concluded, in a November 2001 report, that Lockheed's
> > > prices were "based on cost and pricing data that was known to be false
> > > and purposely overstated."
> >
> >-HJC
> >How do you get runaway labor costs when unemployment is so high?
>
>
> Interesting the Dollar is weaker against other currencies, so the non
> US suppliers are being priced out of the contracts, this may have
> something to do with it, no cheap labour.

Odd, since as of last November nine contracts, with seven different firms,
had already been signed with Australian companies *alone* in regards to JSF
work. Estimate of the return to Australia over the projected life of the
program (NOT including the value of those nine contracts, or follow-ons, or
subsequent additional contracts) if the RAAF selects the F-35 is estimated
to be some $600 million (Australian) (in terms of royalties, waived export
fees, etc.) ( www.defence.gov.au/jsf/capability.asp ), for an investment of
some $200 million (Aus) over a ten year period as a Level 3 SDD partner.
LMCO has even gone so far as to promise to let "no bid" contracts to firms
from participating JSF nations in order to ensure an equitable distribution
of work-share across the consortium (www.ainonline.com/Publications/
asian/asian_04/d1_jsfp22.html ).

Brooks

>
> But if too much non US content is lost will those non US companies
> jump ship.
>
> It will need a fantastic balancing act to get this right..
>
> Cheers
> John Cook
>
> Any spelling mistakes/grammatic errors are there purely to annoy. All
> opinions are mine, not TAFE's however much they beg me for them.
>
> Email Address :-
> Spam trap - please remove (trousers) to email me
> Eurofighter Website :- http://www.eurofighter-typhoon.co.uk

[Harry Andreas]

In article >, Henry J Cobb > wrote:

> http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=4756042
> > In a report to Congress, the Pentagon said JSF costs were rising due
> > to increasing contractor labor and overhead costs and a delay in the
> > start of procurement from 2006 to 2007, as well as the addition of a
> > new optical tracking system.
>
> This isn't the first time Lockmart has had runaway costs.
>
> http://federaltimes.com/index.php?S=2790447
> > So Pedeleose took his concerns to the Defense Criminal Investigative
> > Service, which concluded, in a November 2001 report, that Lockheed’s
> > prices were “based on cost and pricing data that was known to be false
> > and purposely overstated.”
>
> -HJC
> How do you get runaway labor costs when unemployment is so high?

Unemployment is not high in the aerospace engineering business.
We've hired hundreds of new engineers in the last 2 years.

--
Harry Andreas
Engineering raconteur