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Worst is defense industry Cost Plus contracts with guaranteed profit https://www.smalltofeds.com/2014/09/fixed-price-versus-cost-plus-in-federal.html?m=1 https

• rm_-rf_slash 2y ago
  At least with cost plus the producers have an incentive to dedicate enormous assets to build the thing. Government contracting is murderously complex, and factorially moreso when it involves the military. Being off a few percentage points of the initial cost estimate can mean the difference between a profit or an 8 figure loss or more. If the profit insurance wasn’t in place, fewer contractors would take the risk.
• stackskipton 2y ago
  As someone who used to work in the industry, whole reason for Cost Plus is with more traditional contracts, there was a ton of paperwork showing the government wasn't getting ripped off which is obviously crazy expensive as well. So whole point of this fix rate system is government puts out "We are going to pay X for Y with profit of Z, take it or leave it"