Cost-Plus-Percentage-of-Costs in Government Contracts

Abstract

Cost-percentage-of-cost (CPPC) is a method of contracting or a type of contract under which the contractor is not only reimbursed his performance costs but is also paid a stated percentage of his cost. World War I wrought havoc on traditional Government procurement practices. The tremendous demand for war production, along with volatile labor and material prices, dictated a relaxing of the customary fixed price system of acquisition. Competitive bidding and fixed price contracts proved untenable because, not only did many contractors refuse to bid for war production contracts on a lump sum basis, those that did often factored in exorbitant contingencies. CPPC appeared to be the answer to Government prayer, since it seemed to solve the problem of reluctant or unventuresome contractors. Perhaps it was also apropos for that unsettled era, but in any event, CPPC soon became a virtual cornerstone of Government acquisition!

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1984
Accession Number
ADA147779

Entities

People

  • Samuel J. Roser

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Energy and Power Technologies
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Air Force
  • Aircrafts
  • Commerce
  • Congress
  • Contract Administration
  • Contractors
  • Contracts
  • Department Of Defense
  • Fixed Price Contracts
  • Government Procurement
  • Governments
  • Law
  • Management Personnel
  • Procurement
  • Public Policy
  • Second World War
  • United States

Readers

  • Educational Psychology
  • Government Contracting/Procurement.
  • Strategic Security Studies