cost-plus contract

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cost-plus contract

[¦kȯst ′pləs ‚kän‚trakt]
(engineering)
A contract under which a contractor furnishes all material, construction equipment, and labor at actual cost, plus an agreed-upon fee for his services.
References in periodicals archive ?
Unlike the traditional cost-plus contracts typically used during this phase, risk-driven contracts offer a structured approach to impose a potential loss on contractors despite the higher technical uncertainty.
In the case of cost-plus contracts for services, a contractor may submit interim bills for allowable costs incurred, subject to the government's right to inspect and test all contract services.
The focus on awarding more fixed-price contracts resulted in cost-plus contracts going from the most common contract type to less than 5 percent of Air Force procurement dollars by 1966, according to G.
The elimination of risk of loss with the new cost-plus contracts does not allow the Company to record revenue for the total contract price of the arrangement but only the gross profit from the contract.
In the government contracts arena, she has extensive experience with GSA Schedule contracts, commercial contracts, firm fixed-price contracts and cost-plus contracts.
He claims that cost-plus contracts are unfairly vilified but in reality are necessary in order to manage the risk of building sophisticated warships, such as a new class of nuclear-powered aircraft carriers.
In a policy paper released during the campaign, Obama promised to cut federal contract spending by 10% and sharply curtail the use of cost-plus contracts.
9 million), offset by increased sales volume in most of the Company's other end-market segments; (ii) decreased net revenues due to reduced sales prices as a result of declining commodity protein pricing attributable to cost-plus contracts with two large National Accounts restaurant chain customers (approximately $2.
Many of the taxpayers' contracts were cost-plus contracts, under which the customer agreed to pay the actual costs of materials and payroll, plus an additional fee for various services.
2 billion in 2010, before partial government reimbursement under cost-plus contracts.
This is the way commercial satellite companies procure their spacecraft and differs from the cost-plus contracts the military normally signs.
22, Obama said he will sharply curtail the use of cost-plus contracts.