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Boeing has revealed that the first manned flight of Starliner will be delayed until 2018.
This delay for Boeing is not really a surprise. Unlike SpaceX, the company had done very little actual development work on the capsule before winning its contract from NASA. They therefore have a lot more to do to become flight worthy. My one worry is their contract. If the contract is fixed price, as with the original cargo contracts awarded SpaceX and Orbital ATK, Boeing will have no incentive to delay, as they won’t be paid anything until they achieve specific milestones and will get no additional monies to cover the added costs of the delay. If the contract is cost-plus, however, NASA’s traditional contract system used for SLS, Orion, and almost every other boondoggle since the 1960s, then Boeing will be paid regardless of the delay, and NASA will also be on the hook for paying the additional delay costs, thus giving Boeing an incentive to slow walk the construction.
I think the contract was fixed-price, but am not sure. Anyone out there have an answer?