Well, the Air Force has said that they will not cover any of the cost over runs. You would think that this would get themselves in synch.
Their approach won’t bring LMT to heel. OK, so they take on fewer than projected number of actual planes? Doesn’t matter to LMT. They just reduce the number of planes they’ll ship for the amount of money to cover the costs of those that do ship. LMT will be fine with that - they don’t care how many planes they actually ship, only how much their margin is on each plane.
The approach that has to be taken is at a critical point early in the program, a not-to-exceed cost must be laid down... and then, if the company exceeds this, the program is shut down. Do or die.