Once worked on the Space Shuttle program (actually, it`s the ``Space Transportation System`` [STS] program, that`s why each launch number begins with ``STS`` - Challenger was STS-23). Lockheed had beat out Martin for Prime on the contract, taking over the effort in FY84. I was on West Coast program (Vandenberg) where we were preparing launch facilities for a first launch scheduled for Oct `85. This was a Cost Plus Award Fee contract from NASA (with AF oversite at Vandenberg, and the AF hates NASA - all kinds of fun!). Martin had fouled up its effort big time (e.g., pad exhaust vents were too small, with tight turns - not free flowing; an attempted launch with that configuration would probably result in a very large boom - breaking all windows for 50-100 miles!), so we found ourselves having to redo everything. This was not contemplated when the contract was prepared. This played havoc on Award Fees, as suddenly all the performance milestones were way out of whack. The contract was ultimately modified. But in the mean time, those ``in the know`` had a quiet joke going around. Because of the way the time line event achievement fee rate was structured, using an equation, a point in time would come where the contractor would have to pay the customer a fee due to extremely late performance (that wasn`t our fault)!

SGE