Comment by Rover222

12 hours ago

[flagged]

I don't think aerospace is a good example of efficiency in the private sector. Lockheed Martin did the F-35 and it's main competition in the US is Boeing...

I'm not an expert but from my friends in the industry (including multiple at Lockheed and Boeing), it's definitely not a story about how good and efficient the private sector is. Boeing especially sounds like it's been a real mess with a lot of project management issues.

  • Those traditional prime contractors are basically part of the govt bureaucracy with how they operate. SpaceX and Anduril are good counterpoints.

    • Take a gander at how much SpaceX has benefited from government contracts. And for Anduril, well the phrase "all hat, no cattle" is pretty appropriate. In all my years I've never seen so much hype for a company that really hasn't produced much.

    • Boeing's commercial (not government contracting) division is famously dysfunctional and has been for a long time.

I would like to see the government (at all levels) have more in house capabilities and less absurd degrees of outsourcing.

I’m currently watching an 8-figure park remodeling project happening near home. Instead of hiring one or two competent construction managers for a few hundred thousand dollars, the city seems to be spending several million dollars for outside management to oversee this one project. (Never mind how much they’re overpaying for the actual construction.)

  • > I would like to see the government (at all levels) have more in house capabilities and less absurd degrees of outsourcing.

    This would help at all levels.

    It's very difficult as a government employee to properly supervise contractors when you have little idea what those contractors are actually doing.

    But it's hard to gain that experience when you don't actually ever do those things yourself either.

    Empower competent people and the government can still succeed, even today. The issue is that everything seem stacked against the idea of either retaining competence or empowering those who are competent to do their work.

    Aside from the very real attempts by people to defang the government by offloading all of its functions to the private sector, government is also undermined by an entirely different coterie of idealist, who believe that all the government needs is more process and coordination.

    It's very hard indeed to retain competent personnel when they're needlessly mired in non-value-added process steps that are there simply to provide CYA box-checking.

  • Two different issues... On one hand, government should not compete with private enterprise because it has many unfair advantages. Imagine paying taxes to subsidize your competition, who is also exempt from regulations that apply to you. That is the kind of corruption that comes from government-run businesses.

    As for this one:

    >I’m currently watching an 8-figure park remodeling project happening near home. Instead of hiring one or two competent construction managers for a few hundred thousand dollars, the city seems to be spending several million dollars for outside management to oversee this one project.

    Every time the government touches any money, there is an opportunity for corruption. I'm betting that there are kickbacks, nepotism, or some other bullshit involved in the case you mention here. There are countless fraud schemes. California is trying to pass a law against people like Nick Shirley investigating and reporting on widespread fraud, because they know where their bread is buttered.

    • > On one hand, government should not compete with private enterprise because it has many unfair advantages. Imagine paying taxes to subsidize your competition, who is also exempt from regulations that apply to you.

      Are there any real examples of a government entity in the US competing with a private enterprise in which it genuinely would have been better for the government entity not to compete? I’m thinking of various public utility projects in CA (these are mostly great and more cities should do it), roads (I’ve never heard of a private road operating complaining about a public road), military (contractors complain when the military fixes their own gear, and this is asinine), the military doing some of its own research as you can read about in books like Ignition.

      > there is an opportunity for corruption

      It could just be incompetence. I read the construction contract. If I were a contractor, I would not have agreed to the fixed price and the steep late completion penalties without charging two arms and a leg and quoting a very long timeframe.

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A lot of people believe the gov't can do a good job when it is not being actively subverted by people who ideologically want it to fail, and grifters. The only thing that has proven more expensive than having the gov't do something is having them partner with private industry to do it.