Question

In 1991 the Air Force awarded a $93 billion or more contract to a group led by Lockheed, Boeing, and General Dynamics to build the new fighter plane for the 21st century, the YF-22 Lighning 2. A group headed by Northrop and McDonnell Douglas, which had spent more than $1 billion on development for their alternative YF-23,lost out on the contract. That evening on CNN's Crossfire, the Secretary of Defense explained that the Lockheed group got the contract because their "quality for the price per plane was higher." He didn't elaborate. In terms of the theory set forth in this chapter what did he mean

Answer 1

We have no access to any program or text, so you will need to explain what the theory set forth in that chapter is.

What I can tell you is that a huge contract to build the A-12 Avenger II, a stealthy, long-rangte flying wing attack aircraft ws cancelled by Dick
Cheney, the Defense Secretary at that time, because of technical issues, cost overruns and delays. This led to a layoff of some 5,600 employees and many of those engineers went to Lockheed. The case of whether the government should pay progress payments or not was still in litigation in 2007!

With a large exodus of engineers going to Lockheed, Lockheed had the quality to offer that McDonnel-Douglas no longer had.

Sra

Answer 2

P.S. That cancellation of the contract occurred on January 13, 1991.

Sra