I pulled $250/hour out of my ass. As for the rest, I am not talking about consulting-style contracts where a company is billing out people individually. I'm t

I pulled $250/hour out of my ass. As for the rest, I am not talking about consulting-style contracts where a company is billing out people individually. I'm talking about contracts for development of bespoke systems, provide specific services, and so on. When Raytheon gets a contract, they get it to build X. They need to account for the work, and the amount they get paid for labor is the number of recorded hours times the agreed-upon rate for that specific type of labor. There is frequently also a soft cap on the number of hours that can be billed in specific periods. The billed rate covers not only the employee salary but also benefits, overhead, and profit.