On Mar 30, 5:16*am, DD_BobK wrote:
On Mar 29, 12:50*am, harry wrote:





On Mar 29, 8:25*am, DD_BobK wrote:

On Mar 28, 9:22*pm, "Steve B" wrote:

"mm" wrote in message

.. .

OT *What does a Tomohawk missile really cost?

They keep saying a million dollars, or a little less, but does that
include amortizing billions of dollars of development costs?

What is the marginal cost of another missile?

It's hard to believe anything costs a million dollars after there is
an assembly line of sorts.

Hellfires are $82k per copy. *Don't know about Tomahawk. *That is a larger
surface launched missile, right? *Love watching the Hellfire strikes on
youtube. *Now you see 'em, now you don't.

Steve

Heart surgery pending?www.cabgbypasssurgery.com

Hellfire ~100lbs
Tomahawk ~3000 lbs

Helfire range *~8km
Tomahawk range ~2500km

Based on performance & capacity *..... those Tomahawks look like a
bargain *

But I wouldn't waste one even on heavy armor.

later (current?) procurement cycle supposed to reduce cost by ~50%
thus getting it down to ~ 1/2 million each

Our first 12 production units for the AH-64 Apache 30mm Ammunition
Magazine cost ~$150k each (1982) *by the third production buy (120
units) we'd gotten the price down to $50k each.

Cost reduction is driven by learning curve, value engineering design
changes and lot size increases.

cheers
Bob- Hide quoted text -

- Show quoted text -

Cost reduction is about increasing profit. *Absolutely nothing to do
with selling price.

Harry-

Wrong again. *

We bid these projects & supplied the machinery on a Firm Fixed Price
Basis.

Bids were audited prior to award. * Fee (profit) was negotiated base
on bid prices.

If we came came up with cheaper ways to make the item...... the bid
for the "next" buy had to include this cost reductions.

You don't know anything about the bid & procurement process.

Don't let the facts confuse you.

cheers
Bob- Hide quoted text -

- Show quoted text -

What you say exactly confirms what I said. After the contract is
secured, cost savings increase the profits.
Best not to mention any possible savings before the bid eh?

And if there are any changes to the specification, hey, you better
look out, more opportunities for profit once the buyer is commited.

The main reason for improvements (real or imaginary), is to boost
profits after the customer can't escape without vast losses. These
"improvements" are pre-known by the manufacturer, ready to pull out of
the bag like magic. A whole line of them, planned out for years
ahead.

This is aside to what can be done by creative accounting.

That's just the legal stuff too.
There is also the strong possibilty that the "competitors" are in
cahoots behind the scenes. Pre-deciding which work they want etc.

As it's "only" taxpayer's money, no-one is worrying too much.

There is endless scope. The pen is mightier than the lathe when it
comes to creating money.