Re:Nelson testifies cost-plus contracts have been a “plague”...
by sidewndr46 on Wednesday May 04, 2022 @03:27PM
(#31264756)
According to the article, this is how money is made on cost-plus contracts
> About that “plague”: NASA has traditionally procured technology from industry using cost-plus contracts, which allow contractors to charge the agency extra for extensions and changes to their plans.
From my experience, the author of that article has no idea what they are talking about.
Yup, change orders are how deal with these issues when it comes to fixed-costs contacts. For better or worse, its almost impossible for a project to be perfectly specced out ahead of time. And anything that even comes close to looking like it conflicts with the spec becomes a change order.