Cost Plus Contracts
topic on 3 shows · 3 statements across 3 episodes
the a16z Podcast 
Big Technology 
20VC
3 statements about Cost Plus Contracts, every show
Sankar: Defense Startups Are Investing Private R&D Capital Over Cost-Plus Contracts
“You now have a Palmer Luckey. You now have hundreds of founders and entrepreneurs that are back on the playing field with wildly heterodox ideas that are not just being yes men to what the program offices are asking for, but actually investing their own capita…”
Grimm: True capitalism has been missing from defense sector for decades
“Kind of the return of capitalism to the defense sector, which has been sorely missing for decades, ah, a rebuilding the American industrial base relying on cost plus contracts less and turning to more firm fixed contracts.”
Luckey: Cost-plus contracts incentivize defense contractors to maximize costs and delays
“Most companies in this space are defense contractors. They work on cost plus contracts where they get paid for their time and their materials, and then a fixed percentage of profit up to on top of that. Usually a very small percentage of profit. And so the onl…”