If you were a Defense Contractor

Herb15E · July 1, 2022, 11:47pm

Wiggy:

Oh I 100% believe that.
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When I first went out there (Oct '05), everything was still under a “cost plus” contract…meaning they didn’t have a set budget, per se. It was all about they’d front their money, “justify” it to the govt, then the govt would reimburse them what they spent + 6%.
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So basically, the more they spent, the more they made.
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They did so much useless shit, it’d blow your mind. And HOLY FUCK were they overstaffed - since labor was one of their biggest expenses. You’d have a department that needed 2-3 people tops, and it’d have 7-9 easy. All expats for max payroll.
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Of course, once contracts actually started coming up for bid a few years later, they had to start cutting costs. They would do whatever they could to get expats to quit. They started replacing them from people from Eastern Europe at about 1/3-1/2 the pay. Then they started replacing them with people from Africa for a fraction of that.

Thats not even close to what cost plus means.