Originally posted by TheDudeDVant
Perhaps I dont know much about government contracts, but I would say you know little about contracts and/or cost accounting....
In this case cost is the key issue, gunslinger. They get a fixed % of profit above cost. Cost is very easily munipulated.. In simple terms a business can have a wide variety of cost.. Actual cost and accounted cost can be very different..
You, my friend, are very trusting of your government...
add: and entirly too trusting of big business..
You've certainly shown you know nothing of what you speak, and you cannot spell either. Learn to spell, and to present a fact based intelligent arguement.
Regarding government contracts on a cost plus basis, you've shown your ignorance there too.
The government in many cases sets your allowable labor costs and even what you have to pay your employees in many cases. How do I know? I used to work for a contractor who provided a great deal of services for both the Veterans Adminstration and the Department of Defense. They also work for state and local governments.
Regarding the federal government contracts, it is most often the government, and not the contractor who drives costs up and is in control of costs to begin with. Because of government regulations for example, we were paying nearly double the going rate in the area for labor alone. Nevermind the specific requirements for materials and shipping.
As often as not, the government tells you where and from whom you may purchase materials, and at what price. If there is an error, you are required to repay the difference to the government first (if you want to continue to get contracts) and then it is up to you to recoup your costs and losses on the overcharge.
Back to work. I have customers waiting.