It's worked out so well that today only 20% of Rockwell's defense contracts are cost-plus deals.
These have grown fat on cost-plus contracts that have given them little incentive to innovate.
Speed is also a factor: Cost-plus deals diminish negotiating time once the contractor's fee has been set.
But cost-plus projects often leave some wiggle room in accounting for fixed costs ( see box, p. 66).
Instead of a cost-plus mentality, we'd have the opposite--an intense emphasis on productivity.
Sullivan says the cost-plus deal in Massachusetts failed to create incentives to hold Bechtel and PB accountable for cost overruns.
This kind of accounting dispute, says Michael Garvin, a professor of civil engineering at Columbia University, often happens in cost-plus deals.
In cost-plus the government covers development expenses and certain unpleasant surprises but limits the contractor to a small markup (typically 6% to 9%).
Does he have any idea what cost-plus-4 means to his business?
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Since contracts are on a cost-plus basis, profits are built in.
Since contracts are on a cost-plus basis, profits are built-in.
"The overuse of cost-plus contracts, high contractor overhead expenses, excessive contractor award fees, and unacceptable program and project delays all contributed to a significant waste of taxpayers' dollars, " the report said.
Currently health care is dominated by a cost-plus mentality.
SRA's criticisms of lax management of cost-plus maintenance contracts.
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By itself, such cost-plus pricing can be a profitable strategy in an inflationary time if consumers have accepted the idea that prices are rising in a given category, such as baked goods, Lodish says.
In that climate of uncertainty the U.S. Agency for International Development opted for a cost-plus, fixed-fee deal--a contract often used by governments to exert some control over costs and give the contractor incentive to engage in open-ended work.
Employer-clients like Boeing, Citigroup, Pfizer and Microsoft sign contracts in which they agree to pay everything from construction costs to ongoing maintenance in return for on-site child care services for their employees' children. (Often, these employer "sponsors" will also subsidize the parents' tuition.) Under certain "cost-plus" contracts, the employer-sponsors will even shoulder some of the care center's risk in exchange for more control of the operations.
It developed a method to rapidly screen the Pap samples for those mutations using standard genetics equipment that Diaz said wouldn't add much to the cost of a Pap-plus-HPV test.
This has become a topic of fierce debate on the state and local levels as well, where about 86 percent of full-time government workers or about 55 million employees are covered by old-fashioned pension plans that guarantee retirees a certain amount of income plus an annual cost-of-living-adjustment tied to the CPI.
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The bank buys the house, then sells it to the buyer at cost plus a pre-agreed-upon profit, paid in installments.
The core of the Republican Medicare cost-reduction bill is Medicare Plus, a plan offering seniors a range of managed care plans, or HMO's, from which to choose.
The low cost-of-carry for gold is no longer a major plus factor.
During the first half of the year its cost-cutting measures including creating a seven-day joint operation for the Daily and Sunday Mirror, plus integrating its two Scottish operations, which include the publishing of the Daily Record.
For the past few years the formula for fare increases has generally been RPI inflation plus 1%, but for the next three years it is RPI plus 3% - pushing the cost of season tickets up by an average of 8% in the new year.
Marquee consumer web successes (Facebook, Twitter, etc.) plus the much reduced cost of building a web-based service and attracting users in six-figures has produced a big surge in such businesses.
Builders watch out: electricity makes up 8% of the cost of making glass, 15% of cement and 20%-plus of bricks.
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Further monetary easing also helps gold since it adds to worries about inflation whenever an economic recovery takes hold, plus it means a low so-called opportunity cost, or the loss of interest earnings that investors might have gotten instead by holding yield-bearing assets.
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"Three-plus months on strike is nothing compared with the huge cost to writers if these issues were not dealt with now, " says Brian Sawyer, a co-creator and writer behind the Jamie Kennedy television project Model Family.
When someone has minor outpatient surgery in a hospital, payment includes the cost to cover the procedure, plus an extra few thousand dollars in so-called facility fees.
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