Part 11/13:
A dire critique is directed at the current cost-plus model of defense procurement—where contractors are reimbursed for expenses plus a profit margin. This system incentivizes inefficiency and waste, since contractors benefit from inflated costs. Consequently, disruptive startups like Palantir or SpaceX struggle to scale within this framework, often forced into costly legal battles to gain recognition.
Even as these outsiders innovate and outperform traditional players, they remain outsiders due to systemic bias against non-establishment entities, which defend their dominance through complexity and regulation.