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Here's how simple me thinks about it: Cost-plus is just a lazy version of fixed price, where instead of accountants looking at details before new funding is rel
by golem14 4y ago
Here's how simple me thinks about it: Cost-plus is just a lazy version of fixed price, where instead of accountants looking at details before new funding is released, there's automatic approval of overruns.
- teruakohatu 4y ago> there's automatic approval of overruns. That is not quite correct. Cost-plus specifies how charges are priced, it does not specify budgets. I could sell you pencils at cost-plus. How many pencils you buy is up to you, not I.
- golem14 4y agoSure, but these projects tend to be one-offs or at least small runs where the contract commits to say 10 SLS missions or something like that. Agreed that cost plus for something comparatively cheap like a new army rifle is probably different.