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To: stuartcr
If it’s a cost-plus contract, they can just keep adding costs. Just as an example, say the contractor is getting $50/hr, his company could easily be charging the govt $250/hr.

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.

27 posted on 11/20/2008 11:43:25 PM PST by Allegra
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To: Allegra

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.


29 posted on 11/21/2008 7:28:00 AM PST by stuartcr (If the end doesn't justify the means...why have different means?)
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