[sci.military] Bat Plane Bux

cmr@cvedc.prime.com (Chesley Reyburn) (07/27/89)

From: cmr@cvedc.prime.com (Chesley Reyburn)
This just in from US News & World Report:


		B-2		B-1B		B-52		B-29

Last Purchased	1988-?		1986		1962		1946
Number built	(132 proposed)	100		744		3,960
Cost Per Plane	$532 Mil.	$434 Mil.	$56 Mil.	$8 Mil.
Range		8,800 miles	6,400 miles	10,000 miles	3,300 miles

Note: Figures are (allegedly) adjusted for inflation at min-1990s prices.
Basic Data: U.S.AirForce, congressional Research Service, Defense Budget
Project.

Is this more bang for our bux? I get nervous thinking about being
'defended' by a diminishing number of planes that carry an increasing
cost per plane. What is there about the bat plane that warrants such
cost?

Inquiring minds want to know.

cmr

=============================================================
Chesley Reyburn                 ...tektronix!ogccse!cvedc!cmr
ECAE Software, Prime Computer, Inc.   ...sun!cvbnet!cvedc!cmr
14952 NW Greenbrier Parkway              ...sequent!cvedc!cmr
Beaverton, OR 97006                       Phone  503/645-2410
=============================================================

cmr@cvedc.Prime.Com (Chesley Reyburn) (01/06/90)

From: cmr@cvedc.Prime.Com (Chesley Reyburn)
I swore that I was gonna stop posting to this group but this
is too good to keep to myself:

I love the B-2. It looks so... well, deadly. I am, however, quite
amazed at the price of the thing. I have been thinking about just
how in the heck $532 million is getting used. Herewith I submit my
first approximation:

NUMBERS:
    Airframe					$124,000,000.00
    Computers					 $10,000,000.00
    Communications gear				    $250,000.00
    Electronic Warfare gear			    $150,000.00
    Other Avionics				  $1,500,000.00
    development cost per production unit	$130,100,000.00
    Mark up (profit) of %50			$266,000,000.00

    Base price					$532,000,000.00

METHODOLOGY:

    Airframe
	I figured that the B-2 is about as big as a 737 airliner.
	I also figured that choosing the largest airliner that I
	know of would give some decent fudging. So I called Boeing
	and asked what the ball-park price for a generic 747-400
	just off of the line was. The guy said $116 to $132
	million a pop. I used the average of the two prices.

    Computers
	What could be more powerfull than a Cray X-MP? I heard
	that the ball park on them was about $5 million. The B-2
	is very smart so it gets two.

    Communications gear
	I looked in the latest DAC catalog and found the Uniden
	Bearcat 200-Channel Programmable 800 Mhz Rechargable
	Scanner at $249.00 per. I rounded to $250 and applied
	a multiplier of 1000.

    Electronic Warfare gear
	The latest DAC catalog also lists a Maxon RD-XL Super-
	heterodyne Micro Radar Detector for $299 each. I rounded
	to $300 and applied a multiplier of 1000.

    Other Avionics
	I was in the local warehouse discount store (Costco)
	yesterday and noticed that they had a full bore TV Satellite
	receiver set up for $1399. this included dish, actuator,
	receivers and tuners. I rounded to $1500 and applied a
	multiplier of 1000.

CONCLUSION:
    I take the remainder to be actual development costs. This means
    that only about 25% of the price for each production unit is
    going for actual iron with the rest going for incentive (profit)
    and development costs. This seems about right dosen't it?

Chesley Reyburn                 ...tektronix!ogicse!cvedc!cmr
ECAE Software, Prime Computer, Inc.   ...sun!cvbnet!cvedc!cmr
14952 NW Greenbrier Parkway              ...sequent!cvedc!cmr
Beaverton, OR 97006-5733                  Phone  503/645-2410

jons@oscsunb.osc.edu (Jon Steinbach (ST)) (01/09/90)

From: jons@oscsunb.osc.edu (Jon Steinbach (ST))

In article <12850@cbnews.ATT.COM> cmr@cvedc.Prime.Com (Chesley Reyburn) writes:
>
>
>From: cmr@cvedc.Prime.Com (Chesley Reyburn)
>I swore that I was gonna stop posting to this group but this
>is too good to keep to myself:
>
>I love the B-2. It looks so... well, deadly. I am, however, quite
>amazed at the price of the thing. I have been thinking about just
>how in the heck $532 million is getting used. Herewith I submit my
>first approximation:
>
>NUMBERS:

>    Airframe
>	I figured that the B-2 is about as big as a 737 airliner.
>	I also figured that choosing the largest airliner that I
>	know of would give some decent fudging. So I called Boeing
>	and asked what the ball-park price for a generic 747-400
>	just off of the line was. The guy said $116 to $132
>	million a pop. I used the average of the two prices.

    Comparing the airframe of a 747 with that of a stealth bomber is
like comparing the 747 with a kite.  The skin itself is at least
3 times as complex.  Stealth technology incorporates a hexagonal
surface which by bouncing radar waves internally disipates the 
signal returned, at the same time it must be much lighter than the
747 skin but stronger considering it's unique shape.  It also uses 
special radar absorbent paint. This could at least double your
airframe price.

>    Computers
>	What could be more powerfull than a Cray X-MP? I heard
    A Cray Y-MP.  We just had one installed here last summer and it cost
over $20 million.  It weighs about 9 tons, most of it involved
in cooling the unit.  Now imagine making one which is powerful
enough to do stealth bomber problems like stable flight, probably
approaches Y-MP (note weight), but which is light enought to fit
in a small area in B-2.  Multiply 10 by some coefficient.
  
>    Communications gear
>	I looked in the latest DAC catalog and found the Uniden
>	Bearcat 200-Channel Programmable 800 Mhz Rechargable
>	Scanner at $249.00 per. I rounded to $250 and applied
>	a multiplier of 1000.

     Don't forget about complex NSA type scrambler, this is supposed
to be Stealth, not Voice of America.
 
>CONCLUSION:
>    I take the remainder to be actual development costs. This means
>    that only about 25% of the price for each production unit is
>    going for actual iron with the rest going for incentive (profit)
>    and development costs. This seems about right dosen't it?

    I agree that it's price is greatly inflated, but not by a factor
of two.  Also include all the high salaries of workers.  Technological
items in the military do not rely on cheap labor, you have to pay 
enough to keep them from spilling their guts to the Russians.  Also
for companies like this, it may be their only source of income other
than maintenance of old equipment.  Boeing also has alot of competitors
trying to sell planes too, while there will only be one company
building the B-2.  Everything we buy has an inflated price, not just
military planes.  I wonder how much it costs to build a tv or vcr and
look at how much they charge.

Jon Steinbach
Ohio State Computer Science
steinbac@cis.ohio-state.edu
Ohio Supercomputer Center
jons@oscsunb.osc.edu
 

animal@isis.rice.edu (Carl Rosene) (01/10/90)

From: animal@isis.rice.edu (Carl Rosene)

In article <12850@cbnews.ATT.COM> cmr@cvedc.Prime.Com (Chesley Reyburn) writes:
>
>I love the B-2. It looks so... well, deadly. I am, however, quite
>amazed at the price of the thing. I have been thinking about just
>how in the heck $532 million is getting used. Herewith I submit my
>first approximation:
>
>NUMBERS:
>    Airframe					$124,000,000.00
>    Computers					 $10,000,000.00
>    Communications gear				    $250,000.00
>    Electronic Warfare gear			    $150,000.00
>    Other Avionics				  $1,500,000.00
>    development cost per production unit	$130,100,000.00
>    Mark up (profit) of %50			$266,000,000.00
>
>    Base price					$532,000,000.00
>

Sec. of Defense Cheney, on one of those Sunday-morning-news-ghetto
shows indicated that the incremental cost for a B-2 is
300 million dollars. That puts your development cost
per production unit at 232 million. Actually, I think
it's quite remarkable that they are able to build a B-2
for only about twice the cost of a 747. Looks like a
bargain to me.

When Congressmen(and women) debate the 532 million price
tag they are perpetuating a little lie. Mainly, that they
(or, rather, you) have already paid roughly 200 million 
per plane (assuming 100 planes) for the production
line. 

Which brings up another point. The B-2 is, to my knowledge,
the only military plane for which the prototypes came off
of the production line. This was done because of the
tremendous confidence placed in the computer simulations of
the aircraft. This allowed a greatly sped-up and cheaper
program. (Now this fits into sci.military.) Of course,
that means you have a LOT of confidence in that software...

Carl Rosene
Rice University-Home of the 1990 Economic Summit.

cmr@cvedc.Prime.Com (Chesley Reyburn) (01/11/90)

From: cmr@cvedc.Prime.Com (Chesley Reyburn)

First of all, let me draw your attention to the fact that I published a
FIRST APPROXIMATION of the cost. I also had to make some assumptions.
Based on how the numbers came out I would say that my assumptions were
not that far off. Admittedly, it was kind of flip on my part to use
the DAC catalog, but again, the numbers seem to come together.

My goal was to give a rational explanation for the cost. I think that I
have made a good start. Another way of describing my results would be
like this:

    Construction cost per airplane	133,000,000.00
    Development cost per airplane	133,000,000.00
    Profit per airplane			266,000,000.00

>In article <12850@cbnews.ATT.COM> cmr@cvedc.Prime.Com (Chesley Reyburn) writes:
>>Herewith I submit my first approximation:
>>
>>	know of would give some decent fudging. So I called Boeing
>
>    Comparing the airframe of a 747 with that of a stealth bomber is
>like comparing the 747 with a kite.  The skin itself is at least
>3 times as complex.  Stealth technology incorporates a hexagonal
>surface which by bouncing radar waves internally disipates the 

Didn't this class of skin get started on the B-70 (Valkyre) project? I thought 
also that the SR-71 also used a variant on this. Where did you get the
multiplier of three?

>>    Computers
>    A Cray Y-MP.  We just had one installed here last summer and it cost
>over $20 million.  It weighs about 9 tons, most of it involved

A Cray Y-MP is exactly what I had in mind when I described two X-MPs.
My technique was to plug in some quasi-rational number. In fact,
the categories that I used were suggested by what I found in the
catalogs. Our society posesses the ability to make something like
a Y-MP in a bread-box. The incentive simply has not been shown to
exist, yet.

>    I agree that it's price is greatly inflated, but not by a factor
>of two.  Also include all the high salaries of workers.  Technological

I DON'T KNOW if the price is inflated or not. I WANT to know but have
no way other than rude guesses and this news group.

Also, I don't think that I am overpaid, far from it. I don't work
for a direct defense contractor, but I think that they don't pay
much more.

Chesley Reyburn                 ...tektronix!ogicse!cvedc!cmr
ECAE Software, Prime Computer, Inc.   ...sun!cvbnet!cvedc!cmr
14952 NW Greenbrier Parkway              ...sequent!cvedc!cmr
Beaverton, OR 97006-5733                  Phone  503/645-2410

wyatt@cfa.harvard.edu (Bill Wyatt) (01/12/90)

From: wyatt@cfa.harvard.edu (Bill Wyatt)

>>I love the B-2. It looks so... well, deadly. I am, however, quite
>>amazed at the price of the thing. [...]
>>NUMBERS:
[...]
>>    Base price					$532,000,000.00
[...]
> per production unit at 232 million. [...]
> When Congressmen(and women) debate the 532 million price
> tag they are perpetuating a little lie. Mainly, that they
> (or, rather, you) have already paid roughly 200 million 
> per plane (assuming 100 planes) for the production
> line. 

I'm not quite sure who you're saying is lieing. I think it's the DOD
(after all, how many future cost overruns are there going to be?). I
love it when the various media stories cover the test flights of the
`500-million dollar plane'. In fact, until and unless the entire
production run is built without any more cost overruns,
         THE B-2 IS A 22 BILLION DOLLAR PLANE! 
That is, the cost of the entire development effort up to now has built
only one plane. Think about how nervous they must be about crashes!

Bill Wyatt, Smithsonian Astrophysical Observatory  (Cambridge, MA, USA)
    UUCP :  {husc6,cmcl2,mit-eddie}!harvard!cfa!wyatt
 Internet:   wyatt@cfa.harvard.edu
     SPAN:   cfa::wyatt                 BITNET: wyatt@cfa

berman-andrew@YALE.ARPA (Andrew P. Berman) (01/12/90)

From: "Andrew P. Berman" <berman-andrew@YALE.ARPA>

>From: animal@isis.rice.edu (Carl Rosene)


>Sec. of Defense Cheney, on one of those Sunday-morning-news-ghetto
>shows indicated that the incremental cost for a B-2 is
>300 million dollars. That puts your development cost
>per production unit at 232 million. Actually, I think
>it's quite remarkable that they are able to build a B-2
>for only about twice the cost of a 747. Looks like a
>bargain to me.

I've seen the comparison between the cost of a B-2 and the cost of
a 747 before.  Each time I see it, it bothers me.  A 747
gets used thousands of hours a year.   I can't believe that
there is any possible war scenario in which the entire fleet of
B-2 bombers would get more than a couple of hundred hours of use, total.
A 747 generates income for it's owners, a B-2 does not.  The point
is that one is built for economic purposes, one is built for military
purposes.  The real question, I think, is, are those couple of
hundred hours of usage worth the continued investment in the B-2?

Note that if we are going to restrict the use of the B-2 to quick
actions against smaller countries, then we'd probably only need
a few of them in the air at any time.  Even given turnaround time,
it seems that a full complement of 70 would only be needed for
a major, long-term war with a superpower.  This is pure speculation
on my part, I'd be interested in an informed response.

>Carl Rosene
>Rice University-Home of the 1990 Economic Summit.

Andrew P. Berman

henry@zoo.toronto.edu (Henry Spencer) (01/12/90)

From: henry@zoo.toronto.edu (Henry Spencer)
>From: animal@isis.rice.edu (Carl Rosene)
>it's quite remarkable that they are able to build a B-2
>for only about twice the cost of a 747...

Uh, don't you mean "twice the *price* of a 747"?  It's common knowledge
that the profit margin on the 747 is... large.  It has no competition
and demand consistently exceeds supply, so Boeing charges all the market
will bear.  Very handy that was, too, when the 757 was deep in the red
and the 767 was only barely holding its own.

>Which brings up another point. The B-2 is, to my knowledge,
>the only military plane for which the prototypes came off
>of the production line...

This is a pervasive myth.  Building prototypes with production tooling
has been normal practice since the 50s.  How a part is built influences
its properties; you *cannot* build a realistic prototype of a modern
aircraft without using production processes and tooling.  The normal
practice is to try hard to get things right, push the first prototype
through as quickly as possible, and hold up further production until
an intensive test program has (you hope) turned up any major flaws.
Sometimes it works.  The USAF is probably cutting corners on the B-2,
however, since "the computers" say the design is right...

                                     Henry Spencer at U of Toronto Zoology
                                 uunet!attcan!utzoo!henry henry@zoo.toronto.edu

military@cbnews.ATT.COM (William B. Thacker) (01/15/90)

From: Ian Wood <uw-beaver!ssc-vax!uvicctr!iwood>
In article <12981@cbnews.ATT.COM> you write:
...

>Which brings up another point. The B-2 is, to my knowledge,
>the only military plane for which the prototypes came off
>of the production line. This was done because of the
>tremendous confidence placed in the computer simulations of
>the aircraft. This allowed a greatly sped-up and cheaper
>program. (Now this fits into sci.military.) Of course,
>that means you have a LOT of confidence in that software...
>
>Carl Rosene
>Rice University-Home of the 1990 Economic Summit.
 
The AVRO Arrow was also prototyped on the production line.  This aircraft was
the basis for all sorts of projects and ideas that followed.  Its demise also
was the basis for the great tradition of ripping the guts out of a world
leading technology industry.


Ian Wood
Systems Operator                                UUCP   : iwood@uvicctr.uvic.ca
University of Victoria                          BITNET : CCIAN@UVVM
C eh N eh D eh                                           (It's a Sierra, Eric)

Disclaimer (noun) :
   An heinously vulgar concept perpetuated by bureaucrats and lawyers.
=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=
            "And what if I should refuse to get this Loc-Nar?"
                 "You die.  She dies.  EEEVERBODY dies."
=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-=+=-= 

louis@asterix.drev.dnd.ca (Louis Demers) (01/15/90)

From: louis@asterix.drev.dnd.ca (Louis Demers)
berman-andrew@YALE.ARPA (Andrew P. Berman) writes:
>From: "Andrew P. Berman" <berman-andrew@YALE.ARPA>
>I've seen the comparison between the cost of a B-2 and the cost of
>a 747 before.  Each time I see it, it bothers me.  A 747
>gets used thousands of hours a year.   I can't believe that
>there is any possible war scenario in which the entire fleet of
>B-2 bombers would get more than a couple of hundred hours of use, total.
>A 747 generates income for it's owners, a B-2 does not.  The point
>is that one is built for economic purposes, one is built for military
>purposes.  The real question, I think, is, are those couple of
>hundred hours of usage worth the continued investment in the B-2?

Only on technical grounds,  I don't think the comparison is
complete, while 747 technology is not as sophisticated ad B-2's,
it works and is (I would guess) much more reliable and that
should put a damper on the notion that, if it is less advanced it
should be less expensive.

What they have shown so far is that it flyes, not that it works.

-- 
| Louis Demers              | DREV, Defence Research Establishment,Valcartier |
| louis@asterix.drev.dnd.ca | POBox 8800, Courcelette,Quebec, CANADA, G0A 1R0 |
|            (131.132.48.2) | Office: (418) 844-4424       fax (418) 844-4511 |
+---------------------------+-------------------------------------------------+

cmr@cvedc.Prime.Com (Chesley Reyburn) (01/17/90)

From: cmr@cvedc.Prime.Com (Chesley Reyburn)
In article <12981@cbnews.ATT.COM> animal@isis.rice.edu (Carl Rosene) writes:
>Sec. of Defense Cheney...
>...indicated that the incremental cost ... is 300 million dollars.
>...you) have already paid roughly 200 million per plane

Wait a minute...

Your assertions may work in Washington, but where I live all of the money
spent on a project is charged against that project.

If I spend $200 million designing and developing something I would
expect to include that cost in the total project cost.

Chesley Reyburn                 ...tektronix!ogicse!cvedc!cmr
ECAE Software, Prime Computer, Inc.   ...sun!cvbnet!cvedc!cmr
14952 NW Greenbrier Parkway              ...sequent!cvedc!cmr
Beaverton, OR 97006-5733                  Phone  503/645-2410

animal@isis.rice.edu (Carl Rosene) (01/19/90)

From: animal@isis.rice.edu (Carl Rosene)

You know, I hadn't realized that I'd said anything so *controversial*.
Since I am waiting for my thesis to print, I will reply...
In article <13218@cbnews.ATT.COM> cmr@cvedc.Prime.Com (Chesley Reyburn) writes:
>
>From: cmr@cvedc.Prime.Com (Chesley Reyburn)
>In article <12981@cbnews.ATT.COM> animal@isis.rice.edu (Carl Rosene) writes:
>>Sec. of Defense Cheney...
>>...indicated that the incremental cost ... is 300 million dollars.
>>...you) have already paid roughly 200 million per plane
>
>Wait a minute...
>
>Your assertions may work in Washington, but where I live all of the money
>spent on a project is charged against that project.
>
>If I spend $200 million designing and developing something I would
>expect to include that cost in the total project cost.
>
My comment concerning the quality of debate in Congress on whether to 
build the B2 was meant to highlight the fact that much of the money on
the B2 has already been spent. In debating whether to buy additional
aircraft I think the proper number to consider is the incremental cost
of each aircraft--regardless of the project cost. We have already spent
the rest of the money(at this point in the project). It is gone. I do not
think that it is completely honest to quote the price of a single
B2 as 500 million. We do not avoid spending 500 million dollars by buying one
less B2. This is true regardless of the accounting, or where the accounting
is done. Perhaps Mr. Reyburn and I could reach common ground by separating
the costs of buying the ability to build a B2 and the costs of building B2s.

Whether an additional B2 is worth 300 million is another question. Whether
we should ever have embarked on the project is still another. My comments do
not reflect on these questions at all. 

In my original posting I stated my belief that the B2 was the first military
prototype off the production line. Mr. Spencer stated that, in fact, most
prototypes actually come off a production line. I'll concede the point and
blame my mistake on the media. But, I believe he might agree that it has not
been common practice to put the production line at full production before
a flight test program can be completed. And I think Mr. Spencer
would agree that this has been done with the B2. Again, it indicates a
whole lot of confidence in a pretty complex piece of software. I am
not at all sure I would do it.

Carl Rosene
Rice University

animage%sandstorm.Berkeley.EDU@ucbvax.Berkeley.EDU (Cal-Animage Club) (01/20/90)

From: animage%sandstorm.Berkeley.EDU@ucbvax.Berkeley.EDU (Cal-Animage Club)

In article <13218@cbnews.ATT.COM> cmr@cvedc.Prime.Com (Chesley Reyburn) writes:


>From: cmr@cvedc.Prime.Com (Chesley Reyburn)
>In article <12981@cbnews.ATT.COM> animal@isis.rice.edu (Carl Rosene) writes:
>>Sec. of Defense Cheney...
>>...indicated that the incremental cost ... is 300 million dollars.
>>...you) have already paid roughly 200 million per plane

>Wait a minute...

>Your assertions may work in Washington, but where I live all of the money
>spent on a project is charged against that project.

>If I spend $200 million designing and developing something I would
>expect to include that cost in the total project cost.

I don't believe that the problem in DOD spending money is the problem.
Cutting systems will NOT, I repeat, NOT solve the budget problems.  The real
spending problems in the DOD are really NOT in the DOD.  The US Congress
is the body that controls where all the money goes.  All the DOD can do
is to give a list of recommendations as to where to cut.  Remember that
all these Senators and Representatives have constituents to worry about.
If jobs are lost in their district, they may lose their seat in congress.
As a result, you better believe that these politicians are going to lobby
like hell to make sure that their constituents are affected as little as
possible or not at all.  As a result, congressmen get together with other
congressmen and make deals like "if you vote for my bill, I'll vote for 
yours."  More than a few times have congressmen spent money on systems and
bases that the military has decided are obsolete and not practical or necessary
to maintain.  In fact, quite a few times, congressmen have spent more money
to keep bases open in clear defiance of military recommendations.  
	But the DOD is not blameless in all of this.  Many times, companies 
which are required (say the case of Northrop and the MX missile) by the
Air force to have the guidance system by a certain day, often cannot
reasonably comply since the parts companies are not coordinated with the
final guidance system assembley at Northorp.  Required by contract, Northrop
is caught in a bind and must comply with the contract and deliver on time.
As a result, Nortrop cannot afford to wait for the parts and send their
employees to Radio Shack around the corner to buy the parts needed.  Needless
to say, these parts do not meet the requirements for durability and 
toughness that the proper parts that go in the guidance system should.
As a result, when the completed guidance systems are sent off, they contain
cheap substandard parts.  Months later, ALL the guidance systems are returned
after all of them flunked the military tests and Northorp is told to repair 
the problem.  This circle costs the tax-payers several million dollars
per batch that is returned.  Nortrop, however, is not blameless in all
this either, since it throws away the good parts when they come in, though
they came in late.  The cycle repeats itself and pretty soon you get
a problem.  Parts are reordered, the military wants them by a deadline,
the deadline is not practical, etc.  Some of the guidance systems have
the good parts, but since the military doesn't test EVERY single one,
small batches are returned if a representative one is found defective.
Otherwise, if the representative unit is good, the whole batch is kept.
This is because, the military assumes that only the good parts were used.
Now THIS, not only wastes OUR money, but doesn't exactly do miracles to
our nuclear program either.  I'd rather have a guidance system that works
and nukes that work 60% of the time, than nukes that are guaranteed to work
and a guidance system that works 60% of the time.  Here is where I believe
we have the REAL problem.


The Daimyo
wang@ocf.berkeley.edu

cmr@cvedc.Prime.Com (Chesley Reyburn) (01/20/90)

From: cmr@cvedc.Prime.Com (Chesley Reyburn)
>of each aircraft--regardless of the project cost. We have already spent
>the rest of the money(at this point in the project). It is gone. I do not
                                                            ^^^^

Carl, did you ever hear about that fine old tradition of killing the
messenger that brings bad news?

>think that it is completely honest to quote the price of a single
>B2 as 500 million. We do not avoid spending 500 million dollars by buying one
>less B2. This is true regardless of the accounting, or where the accounting
>is done. Perhaps Mr. Reyburn and I could reach common ground by separating
>the costs of buying the ability to build a B2 and the costs of building B2s.

It is easier for people to talk about one number than two.
When using one number in your discussion you include both
construction and development costs. When using two numbers
in your discussion you are talking about a per unit construction
cost AND a lump sum that has already been spent on development.

Admittedly using two numbers makes entirely clear the fact that
some money has already been spent, but my observations of the
media and political worlds tell me that only one of the numbers
will be used. The second number will be forgotten. Further, my
observations tell me that the number that will be dropped will
be the number that has already been spent.

Within the above context I would prefer to keep the whole amount
(development and production costs) in some form before the attention
of the people who pay the bills.

OK, so I maintain that my numbers still work. I estimated about
$130 million for actual construction costs per unit. A %100 mark-up
for incentive gives us $260 million, or very close to the $300 million
amount mentioned by Secretary Cheney.

Now, let me tell you about my stealth 747. By employing recent
developments in stealth technology it will allow financially pressed
airlines to avoid meddlesome FAA regulation at congested hub airports...

Chesley Reyburn                 ...tektronix!ogicse!cvedc!cmr
ECAE Software, Prime Computer, Inc.   ...sun!cvbnet!cvedc!cmr
14952 NW Greenbrier Parkway              ...sequent!cvedc!cmr
Beaverton, OR 97006-5733                  Phone  503/645-2410

henry@zoo.toronto.edu (Henry Spencer) (01/22/90)

From: henry@zoo.toronto.edu (Henry Spencer)
>From: animal@isis.rice.edu (Carl Rosene)
>In my original posting I stated my belief that the B2 was the first military
>prototype off the production line. Mr. Spencer stated that, in fact, most
>prototypes actually come off a production line. I'll concede the point and
>blame my mistake on the media. But, I believe he might agree that it has not
>been common practice to put the production line at full production before
>a flight test program can be completed...

It's not usually considered good practice, but it has been done occasionally.
The results generally have not been good.  The two cases I can remember are
the F-100 and F-111.  Several F-100s and pilots were lost before a flight-
test aircraft went violently out of control (killing the pilot) in a worst-
case test, and analysis of the wreckage and instrumentation records finally
led to understanding of a nasty stability problem.  And roughly half of
the total F-111 production run were too far down the line to incorporate
the definitive fix for the intake-engine compatibility problems, when it
turned out that significant structural changes were needed.

The B-2 program is being very optimistic.

                                     Henry Spencer at U of Toronto Zoology
                                 uunet!attcan!utzoo!henry henry@zoo.toronto.edu