$6 billion in cost increases and more than six years in schedule delays.
Cost-plus contracts pay the recipient the total amount of their costs plus a fee.
Cost-plus contracts are intended to be used in experimental and cutting-edge technology programs
But in this case, Aerojet was modifying engines that had flown multiple times on the space shuttle program; and Northrop was modifying boosters that were similarly used many times.
For example, even though Aerojet delivered only five of 16 of the refurbished RS-25 rocket engines by the end of its contract, it was rated "very good" by the space…
Cost-plus contracts pay the recipient the total amount of their costs plus a fee.
Cost-plus contracts are intended to be used in experimental and cutting-edge technology programs
But in this case, Aerojet was modifying engines that had flown multiple times on the space shuttle program; and Northrop was modifying boosters that were similarly used many times.
For example, even though Aerojet delivered only five of 16 of the refurbished RS-25 rocket engines by the end of its contract, it was rated "very good" by the space…
