The variance isn't that high, and these things are monitored by DCMA and others (although as a Contracts Manager with integrity, I'd like to see it monitored much more).
Keep in mind that these companies are not only paying our salaries, but are also paying for our comprehensive medical physicals, innoculations, training and orientation, food and lodging while in the U.S. during same, travel, body armor, our security expenses as we travel within Iraq and other costs.
There is also a profit margin for this, but there is a cap. These companies are in business to make money just like any other.
Therefore, yes, these companies are paying us XXX and marking the cost up when billing the government.
I agree, but I also know that the military really could do it cheaper, but that would require many changes that, for whatever reason, they will not make.