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Cost-Plus Contract
(redirected from Cost-Plus Contracts)

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia 0.01 sec.
Cost-plus contract
A contract in which the selling price is based on the total cost of production plus a fixed percentage or fixed amount.

Cost-Plus Contract
An agreement between a buyer and seller in which the seller agrees to make or produce a good for the buyer. The selling price is the cost to the seller of making or producing the good in addition to some fixed fee or percentage of the cost. See also: Cost-plus pricing.


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But, the actual contract costs on these fixed-price contracts ballooned by 36%, which is more than the average cost overruns on cost-plus contracts for major weapons systems.
The negotiations, which were expected to wrap up more than a month ago, are taking longer because the contract is structured as a fixed-price deal instead of the cost-plus contracts usually signed for the development of aircraft, a Lockheed official said.
These are not subject to as rigorous auditing as cost-plus contracts.
 
 
 
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