Government contractor
Encyclopedia
A government contractor is a private company that produces goods or services under contract for the government
. Often the terms of the contract specify cost plus
– i.e., the contractor gets paid for its costs, plus a specified profit margin
. Laws often require governments to award contracts to the low bidder. Some communities are largely sustained by government contracting activity; for instance, much of the economy of northern Virginia
consists of government contractors employed directly or indirectly by the federal government
.
define the expression
"government contractor" for the purposes of that Act.
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
. Often the terms of the contract specify cost plus
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-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a...
– i.e., the contractor gets paid for its costs, plus a specified profit margin
Profit margin
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.Net profit Margin = x100...
. Laws often require governments to award contracts to the low bidder. Some communities are largely sustained by government contracting activity; for instance, much of the economy of northern Virginia
Northern Virginia
Northern Virginia consists of several counties and independent cities in the Commonwealth of Virginia, in a widespread region generally radiating southerly and westward from Washington, D.C...
consists of government contractors employed directly or indirectly by the federal government
Federal government
The federal government is the common government of a federation. The structure of federal governments varies from institution to institution. Based on a broad definition of a basic federal political system, there are two or more levels of government that exist within an established territory and...
.
United Kingdom
Section 12(2) and (3) of the Official Secrets Act 1989Official Secrets Act 1989
The Official Secrets Act 1989 is an Act of the Parliament of the United Kingdom. It repeals and replaces section 2 of the Official Secrets Act 1911. It is said to have removed the public interest defence created by that section....
define the expression
"government contractor" for the purposes of that Act.
See also
- Defense contractorDefense contractorA defense contractor is a business organization or individual that provides products or services to a military department of a government. Products typically include military aircraft, ships, vehicles, weaponry, and electronic systems...
- List of United States defense contractors
- :Category:Defense companies of the United States