SlowMan
I really should change my personal text
- Joined
- 9 September 2012
- Messages
- 154
- Reaction score
- 8
Both CASA and Boeing are making firm fixed price offers, with damage provisions for failures to deliver.GTX said:Desperate isn't always a good thing - there have been many cases of the desperate making unrealistic claims during the bid process (especially on cost) only to have things change after they were in contract.
The F-35 is offered on the FMS term, which means no price negotiation, no fixed prices, and in Korea's case, no quality guarantee because most of units are being delivered to Korea prior to the USAF IOC; the US government has no obligation to assure quality on units delivered before the IOC date.
Boeing is also "American" and the US state department can't officially protest a Boeing win.chuck4 said:Korea is not the student, the US not the school or teacher. Korea is the customer, the LM is a shop keeper. What Korea can get out of the US depends whether Korea wants to buy American ware more than LM wants to sell its wares to Korea.
Well, a line has been drawn on the sand at $9.45 billion and not a dime more. Has Boeing not only bid under this figure initially($9.4 billion), Boeing is now offering to sell the Silent Eagles at the F-15K prices. This is why local observers call FX III a done-deal.Korea is putting off its decision for the simple reason the with every passing day, LM wants to sell its wares to Korea more.
The F-35 won't be on sale. If Lockheed cuts prices, then it has to cut prices for all the JSF partners and eat the loss.Korea is waiting to see if there will be a fire sale. It's simple as that.
TaiidanTomcat said:I wonder if LM has left some "margin" so as you say, when it comes time to lower the cost, they can still afford to. the other bidders?
The F-35 is offered on the FMS term, meaning that Lockheed doesn't deal directly with the DAPA. Rather, the JSF Office and the USAF act as an intermediary bidder, so that Lockheed -> USAF -> Korean government in sales.
The other two jets are offered on the DCS(Direct Commercial Sales) term with firm fixed prices, so that Boeing can bypass the US DoD and negotiate with the DAPA directly.