Cost-Plus Contract

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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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Cost-plus contracts allow the government and contractor to share risk by giving the government the option to continue funding a weapon program above a contractor's initial estimate.

Making the contract type fit the program by King, David R. / Defense AT & L

TRW announced three big contract wins since August: an $868 million cost-plus contract from the Defense Department to begin development of the Space-Based Infrared System Low missile defense element; a $2.

Savvy dealmaking by Northrop not reflected in falling shares. ... by Palazzo, Anthony / Los Angeles Business Journal

At Fort Sill, Oklahoma, Northrop's cost in the first two years of a cost-plus contract exceeded its bid by $14.

The perils of privatization by Shenk, Joshua Wolf / Washington Monthly

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