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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.
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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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