I know that everyone really loves to believe in conspiracies, but there isn't one. They guy ordering the hammer fills out a form. That form may or may not request that he state the specs it must adhere to. If is used in space, he checks a certain number of boxes. If is used around airplanes and fuel, he may check another (after all - the hammer may have to be made from a metal that doesn't produce sparks when it hits something hard. There are a very large number of "boxes". He doesn't know how much the hammer costs, or what the difference in cost really is if he checks, or doesn't check box #39. The guy just needs a certain type of hammer. The request goes to the buyer, who knows little or nothing about specs. So the buyer sends out the RFQ (Request For Quote) to a variety of hammer suppliers. The suppliers see that the hammer must be tested to pass a particular test suite and and they submit their bids. They aren't colluding, they just realize that they are going to have to send their hammer out for $20K testing, and price their hammer accordingly.
The buyer gets the lowest bid and buys the hammer from the lowest cost (and approved) supplier. The original guy gets his $500 hammer (or $1000 hammer, or whatever). He is happy. He DOES NOT KNOW (or care) how much that hammer cost. Even if he did, what other person in his organization would listen? If anyone buys a $20 hammer at Home Depot and it fails when used for a particular application in Afghanistan, he loses - big time, maybe it somehow results in the death of a soldier. If he goes through accepted channels, chose the correct "boxes" (explained above), and gets a $500 hammer and it fails in Afghanistan, it is not his fault.
Which would you choose, the $20 hammer or the $500 hammer? And who is the "evil" money-grubbing person here?
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