Sorry but you are wrong. The way DCCA accounting rules work contractors can go back and get more money.
The key is the way these rules calculate overhead. It is actually a two way street. If the real overhead is lower then companies have to pay money back, if the real overhead is higher they get a check.
One more thing, and I find it amusing, all of the bureaucrats just say their budgets decrease by some number greater than 1/260. Not much alone but we are talking the Federal government here this stunt will cost $16.25 billion.
You are correct only if the customer actually has additional money. In my 30 years of experience as a contractor no customer ever had more money. We had to eat every overrun.
“Sorry but you are wrong. The way DCCA accounting rules work contractors can go back and get more money.”
There are accounting rules and then there’s the details of the contract you signed. One of the contracting managers I knew has a sign on her desk. “Knowledge is what you gain by reading the contract. Experience is what you gain when you don’t.” So, it depends on the contract you signed. Companies I’ve worked for have been on both the knowledge and experience side of the equation. While what I wrote is not 100% true in all cases; nor is it 100% wrong. In the end, what did your company sign up to? Hopefully, if they’re on the experience side of the equation, they’ll survive to the next negotiation.
However, in the end, no matter how you look at it, Obama increased costs to the government. (Meaning taxpayers will pay for a benefit they mostly won’t get to use themselves.)