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cost-plus contract

   Also found in: Financial, Encyclopedia, Wikipedia 0.01 sec.
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Noun1.cost-plus contract - a contract in which the contractor is paid his total cost plus a stated percentage of profit
contract - a binding agreement between two or more persons that is enforceable by law


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Cost-plus contracts allow the government and contractor to share risk by giving the government the option to continue funding a weapon program above a contractor's initial estimate.
TRW announced three big contract wins since August: an $868 million cost-plus contract from the Defense Department to begin development of the Space-Based Infrared System Low missile defense element; a $2.
At Fort Sill, Oklahoma, Northrop's cost in the first two years of a cost-plus contract exceeded its bid by $14.
 
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