The multi-national defence industry allows 10-15% of purchase...

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    The multi-national defence industry allows 10-15% of purchase costs for incentives for the decision makers. On a big contract this means that lots of contributors to decisions have their snouts in the trough. The industry is good at arranging incentives so that no one is embarrassed, they have plenty of practice at doing this. Australian defence equipment is all bought off the plan based on blue sky performance projections. When projects do not meet their target parameters the Department cannot admit failure so more money is thrown in and the delivery dates stretch out. The F35 is a classic example which by virtue of its short range which requires air tanker support. While the F35 has stealth features this is more difficult to place on an air tanker and this results in a substantial limitation. Lockheed are not too fussed, just add a band-aid and give the RAAF a new toy.
 
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