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"Most importantly, do not assume a better design will beat lower cost."
There is no evidence in the GAO report that Boeing/Lockheed offered a better design than Northrop.
Both competitors knew up front "lowest price technically acceptable" was the criterion. You'd have to be completely stupid to offer a "better design" in that scenario.
It is often not appreciated that the TRL for some design features of cutting edge development programs is below 5. Invariably this leads to modifications to the functional baseline as the concept evolves and thus the final product baseline is different to what originally may have been envisaged as the eventual solution. The cost of approved modifications should be reflected in an adjusted baseline as they do not constitute overruns per say but instead a more accurate costing for the desired end product.