cost-plus contract

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  • noun

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a contract in which the contractor is paid his total cost plus a stated percentage of profit

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References in periodicals archive ?
In a cost-plus contract, a contractor is paid for all of its allowed expenses to a set limit, plus additional payment to allow for a profit, as opposed to a fixed-price contract, which pays the contractor a negotiated amount regardless of the expenses it incurs.
The authors employ an economic theory framework to discuss how cost-plus contracts typically used during this phase have inadvertently reinforced the sources of contractor and government optimism bias.
The three-year, cost-plus contract, which commenced this week, will also involve providing a vending service for 290 McCann-Erickson staff.
Under Halliburton's cost-plus contract, all of these wasteful expenditures were passed on to the taxpayer.
R&D) protests the award of a cost-plus contract to Ferguson-Williams, Inc.
Another is the cost-plus contract, which requires a slightly different pricing mindset than a firm-fixed-price contract.
When [Alpha] [is greater than] 1, the contract again becomes a sort of cost-plus contract.
At Fort Sill, Oklahoma, Northrop's cost in the first two years of a cost-plus contract exceeded its bid by $14.
Either we bid on a lump sum contract based on completed plans and specifications or a cost-plus contract with or without a guaranteed maximum price (GMP), also based, in all likelihood, on completed plans and specifications.
This taxpayer's compensation arrangement with the relos resembles a cost-plus contract, which is frequently used in manufacturing or construction.
Eskom and Exxaro has a cost-plus contract for the supply of coal to the Arnot power station.
I completely agree with David Packard that costs can be controlled on a cost-plus contract by better management.
The RSA contract was a cost-plus contract in which payment from the government was made not on the contract price but instead on the actual cost of producing the product.
Finally, in some cases, the government may terminate a cost-plus contract for convenience.
This understanding is critical to a cost-plus contract where, if costs are not allowed, they come out of the bottom line and can greatly reduce profits.