Apart from technical execution, Ortberg identified Boeing’s errors in cost and risk estimation as other reasons for the company’s poor performance on several fixed-price government contracts, including Starliner.
“We’re not going to be able to just wave the wand and clean up these troubled contracts,” he said. “We signed up to some things that are problematic.”
Ortberg said he is reluctant to ditch all of Boeing’s troubled contracts. “Even if we wanted to, I don’t think we can walk away from these contracts,” he said. “These are our core customers that need this capability. We’ve got long-term commitments to them. So walking away isn’t an answer to this.”
However, Orberg added that Boeing could reassess programs as they shift from one contract phase to the next. NASA’s commercial crew contract with Boeing has a maximum value of $4.6 billion, but that assumes the agency gives Boeing the green light to fly six operational Starliner missions.