2 ms·
Not necessarily, for stuff that genuinely doesn't exist yet, such as cutting-edge military technology , or for situations where there's literally only a single
by MichaelZuo 4y ago
Not necessarily, for stuff that genuinely doesn't exist yet, such as cutting-edge military technology , or for situations where there's literally only a single potential bidder, cost-plus contracts are the least bad method I can think of.
- thaumasiotes 4y agoThey are significantly worse than the standard, extremely simple method of setting a budget and providing that amount of money.
- MichaelZuo 4y agoSo then it doesn't happen, or some extremely high price is offered to cover all potential risks. Like 5x or 10x the naive estimate. Which seems worse.