4 ms·
What is the point of a cost-plus contract? At that point why not do it in house, it's explicitly more expensive than that
by RugnirViking 3y ago
What is the point of a cost-plus contract? At that point why not do it in house, it's explicitly more expensive than that
- sokoloff 3y agoMany times the government can’t hire employees they need (unable to pay them a competitive salary or otherwise attractive career prospects) so can’t bring it in house. Then, cost-plus arises because a company has to cover overhead and leave a profit, otherwise why would they bother? (Cost plus makes sense when you’re not sure enough of the requirements to write a fixed-price contract and then get change-ordered to death.)
- RugnirViking 3y agoBut aren't they explicitly paying the cost of those employees' competitive salaries?
- lmm 3y agoSure, but they may not be able or willing to commit to paying that much in the long term, or they might be unable to hire them because they're noncitizen or would fail security clearance, or they may want to hide them from FOIA for some reason, or...
- User23 3y agoOr campaign contributors expect a return on their "investment."
- sokoloff 3y agoYes, but not via the GS pay schedule: https://www.federalpay.org/gs/calculator https://www.federalpay.org/gs/calculator