A ‘stock’ 747 might be *listed* at that price but no one pays list price...except maybe the federal government because it’s not their money, they’re terrible at negotiating, and for certain other products negotiation is outlawed due to company lobbying.
Common discounts on Boeing and Airbus planes for the commercial sector are in the 25-60 percent range depending on model and customer order volume.
Defense contract costs, as well as many other things that the federal government buys, are mostly never justifiable. The US government is routinely ripped off and it’s usually intended to be that way.
“Defense contract costs, as well as many other things that the federal government buys, are mostly never justifiable. The US government is routinely ripped off and it’s usually intended to be that way.”
I worked for a small defense contractor back in the Vietnam War days. We had several CPFF sub-contracts on the Minuteman ICBM. When the management found we were coming in under budget, they put all of us on scheduled overtime to correct the “deficiency!”