The Pricing of Non‐competitive Government Contracts

This article is based on responses to the 1982 general invitation from the Review Board for Government Contracts. The authors' main contention is that the pricing of government contracts has hitherto been deficient in at least two fundamental respects — the use of the historic cost accounting model as a computational framework for the costing and pricing of non‐competitive Government contracts and the use of ex post accounting rates of return for estimating target rates of return.