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Old COP MB
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Making Sense Of The Air Force One ThingThere seem to be a few numbers floating around since Trump called out Boeing this morning . . . $170M, $2.7B, and $4.0B. A. B. Stoddard jumped all over Trump this morning for quoting $4.0B, basically saying he was ill-informed and the Boeing (and real) number was actually $170M, and he should get his facts straight before Tweeting. I think this is real similar to what we went through for very big projects, especially for Ekofisk. My bet is that there was a project identified to develop and build two new next generation Air Force One airplanes. Substantial effort went in to estimating that the project would cost $2.7B, but this was a Pre-Engineering number, not an AFE (Authorization For Expenditure) quality estimate. In order to develop an AFE quality estimate, the government approved an AFD (Authorization for Development) to do the detailed engineering and design work required to refine the number to AFE quality. So, most likely, Boeing just completed a $170M AFD (justified by a Pre- Engineering project estimate of $2.7B) and determined the AFE cost to be $4.0B. Dis |
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