Reply #23: Not true... I've worked on government cost plus contracts [View All]

[cap]

and actually looked into LOGCAP for a company that I was working for that does government logistics. You can't do whatever you want on those contracts. It is simply that you contract for certain goods and services and ONLY those goods and services are covered by that contract. In other words, if the contract is for tanks, you can only sell tanks not ice cream to the government. LOGCAP is for the purchase of logistics not security or military intelligence. LOGCAP is not an open purchase order although the way KBR ran it, I can understand the confusion!

Cost plus simply states that the government will pay for the cost of those services plus a certain percentage. It was impossible for KBR to lose money on that contract.