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That model worked really well for their project for the Port Authority of
NY/NJ. (/sarcasm).
On Thu, Jun 3, 2010 at 11:22 AM, Peter Neilson <neilson -at- windstream -dot- net>wrote:
> Technical Writer wrote:
>
> > It is the area of pricing adjustments for projects of different scope
> that I am most in need of advice
>
> Once again I've not got what you are asking for, but I do have a
> suggestion.
>
> Raytheon has been a successful vendor to the US military for decades. It
> might be worthwhile to study their strategy. As I understand it, they
> come up with a bid to do /precisely/ what was asked, and nothing more,
> cutting their costs to the bone or less. They understand that the
> original specification for the project will be incorrect, and that (this
> is the key) the project will have to be augmented or done over.
>
> The people working on the project generally are not paid well, and are
> told not to make suggestions or corrections. Instead, work is judged to
> be complete once it appears to match specifications.
>
> If, during the ongoing development, the customer asks for changes, that
> is an extra price to be negotiated or even put out for a new bid. But of
> course Raytheon now has the inside track.
>
> Eventually the system will be delivered, and the brass will discover
> that is not what they wanted, but instead what they asked for. The RFQ
> for the second version of the system goes out, and Raytheon is best
> poised to win the bid.
>
> Source: Old-time Raytheon insiders I've known.
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