Too many of the contractors were reaping excess profits from cost-plus contracts, without being held accountable for the poor quality of goods delivered.
Under the cost-plus contract, payments include a share of fee distributions based partly on performance and reimbursement for employee salaries and home office expenses supporting employees on the job.
Note however that fee-based, cost-plus/ time-and-materials business models are very vulnerable to disruption -- it's the equivalent of having a one-trick pony in the race.
