Cost Plus Contracting
topic on 5 shows · 5 statements across 5 episodes
American Optimist 
Invest Like the Best 
Sourcery 
the a16z Podcast 
20VC
5 statements about Cost Plus Contracting, every show
Sankar: Cost-plus government contracting eliminates risk and suppresses innovation
“The primes are just downstream of the consequence of the incentives the government gives, and I think the worst incentive is cost plus contracting. Your upside is, is capitated. You're not supposed to take any risk. The government basically pays for your R&D, …”
Schimpf: Traditional cost-plus defense contracts are a disaster
“Versus the traditional approach where it's like the government took all the risk and you get a fixed profit fee. That's a disaster. Like everything just gets more complex and more expensive. It doesn't work out.”
Sankar: Cost-plus defense contracting is disastrous for innovation
“So I think this idea of cost plus is just disastrous for innovation. You know, there's no leverage in your business. It robs founders and entrepreneurs of the necessary incentive to invest ahead of the curve in the things that we're going to need.”
Feldman: Cost-plus government contracts misalign incentives and destroy trust
“Cost plus is it sounds like a good path, but it is a terrible way to do business. It's a way of business that says, we don't trust you, and you're going to slam as much cost as you can into the cost side, and we're going to try and run around and make rules ab…”
Luckey: Disruption of defense cost-plus contracting requires massive scale
“Like you might build some fun gizmos and gadgets, you might get some things out there, but you're not going to be able to destroy the defense industrial complex and shift everybody from cost plus contracting models to product models where you actually are acco…”