Procurement: March 31, 2001

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The US Air Force, facing a $2 billion cost overrun on the F-22 program, has decided to go to war against cost escalations. They will spend $475 million over the next four years to help contractors design more efficient and cheaper ways to produce the same components, and have set up new programs where contractors that bring in their work under budget get to keep some of the savings (as pure profit).--Stephen V Cole