The Infantry Squad Vehicle shares 90% of its components with a Chevy Colorado. The top Trim Colorado costs $30K usd or so, but the the ISV costs $330k. What makes up the 10% difference between the Colorado and the ISV?

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Not trying to hate. Maybe it’s armour, maybe it’s guns, but that is a big difference.

In: Economics

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Anonymous 0 Comments

Something that has been left out of every comment that I’ve seen is the simple fact that this **is a military contracted vehicle.** So what does that mean?

**Well first, as has been mentioned, this vehicle probably has significant improvements over the retail version**. Superficially we would think of armor and weapons but there’s probably a fair deal more that is adjusted or added on to make the vehicle operate in a warzone (someone mentioned the transport capability as an area where additions or adjustments might significantly improve performance).

**The second biggest factor is it’s military nature as something that needs to be designed and built.** People will sight over-bloated military budgets (which is a whole separate issue), but every tool the military uses needs to be designed and built in America (or your country of origin typically). Governments aren’t super keen on trusting other governments to design their weapons and technology, at least not in the West. Even with initiatives like the Defense Technology Security Administration which oversees defense sharing with allies, the cards are still kept quite close to the chest.

So what’s the implication for military contracts and tech? Well, they’re going to be insanely expensive. **Unlike Apple, Nike, or every other major company, the DoD can’t just pay poor people $0.67 an hour to make M16s and Predator Drones.** Instead domestic workers need to be paid well not only because of US Labor Laws, but to shield them from poverty (which is one of the easiest doorways for foreign agents to utilize blackmail against security-cleared workers).

There’s a lot at play with military contracts. Just look into Naval ship decommissioning to learn about how complicated this stuff can get, and the reasons therefore. I hope you found this helpful!

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