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Defense Department Profit and Contract Finance Policies and Their Effects on Contract and Contractor Performance. IDA paper P-4284 (Revised) , 2009

From the executive summary: “This study as a whole is concerned with two questions about profit policy. First, in what respects does profit policy provide incentives or disincentives with respect to cost growth, schedule slips, and the performance features of a system eventually provided to the Department of Defense? Specifically, we are interested in whether or not profit policy can reliably and predictably be manipulated to encourage desirable outcomes on particular contracts. Second, does profit policy provide an “adequate” profit to defense contactors; that is, a profit large enough to retain those firms in the defense industries?”

Authors - Arnold, Scot, et al.



Arnold, Scot, et al.


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