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 Lightning 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. Did he mean Lockheed quality was higher? or Did he mean the Lockheed price was lower? If neither, what did he mean?

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 Lightning 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. Did he mean Lockheed quality was higher? or Did he mean the Lockheed price was lower? If neither, what did he mean?

Answer 1

I assume he meant that Lockheed's quality was higher, considering the planes' dollar-for-dollar price.

Answer 2

To understand what the Secretary of Defense meant during his explanation, we can analyze the statement he made on CNN's Crossfire. He stated that the Lockheed group got the contract because their "quality for the price per plane was higher." This implies that the decision was based on a combination of both quality and price.

There are two possibilities to consider based on the statement:

1. Lockheed's quality was higher: This interpretation suggests that the Lockheed group presented a superior product in terms of performance, technology, reliability, and other factors. The Air Force believed that their aircraft, the YF-22 Lightning 2, had better overall quality compared to the alternative YF-23 presented by Northrop and McDonnell Douglas.

2. Lockheed's price was lower: This interpretation suggests that Lockheed's bid was more cost-effective. While the quality of both aircraft may have been comparable, Lockheed offered a more competitive price per plane, making their proposal economically more attractive.

It's also worth noting that the Secretary of Defense didn't elaborate further on the specific reasons behind the decision. Therefore, without additional information, it is challenging to definitively determine his exact intent or the relative importance of quality and price in the decision-making process.