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Cost-plus contract
A cost-plus contract, also termed a cost reimbursement contract, is a contract where a contractor is paid for all of its allowed expenses to a set limit ''plus'' additional payment to allow for a profit.〔(Cost-Plus Contracts ) Center for Strategic and International Studies〕 Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred expenses.
== History ==
Cost-plus contracts first came into use in the United States during the World Wars to encourage wartime production by large American companies. According to Martin Kenney, they "allowed what were then small technology firms like Hewlett-Packard and Fairchild Semiconductor to charge the Department of Defense for the price of research and development that none could pay on its own. This enabled the firms to create technology products that eventually created entire new markets and economic sectors".
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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