I for one have a bit of a problem when the government signs a contract with a military company like Sikorsky and when later, the company reneges on some of the promises it made. Yet, when it comes to signing a contract, companies always promise the moon. Everything is fine up until the contract is signed. In my opinion, the company failed to uphold the terms of the contract.
Based on what I've read, had Sikorsky been fined as per the terms of the contract, it would have been on the hook for $90 million. My concern is that this will have a spillover effect on other contractors.
Is there not a danger that henceforth, defence contractors will make all kinds of promises when they sign a contract, even if they cannot meet the product delivery deadline, and that they will cite the case of Sikorsky as a reason for not being fined?
Is there not a danger that this will encourage defence contractors to be delinquent?