What are the benefits of cost plus government contracts?

Question

I can think of a few negatives, such as no incentive to finish, but what are the positives of cost plus government contracts? I mean
how do they benefit the government?

Answer 1

Cost plus is the norm for contracts with the government. There are no benefits to the government but there are great benefits to the contractors. Money, Money and more Money is to be made. There is no real drawback here for the government because they can always print more money or raise taxes, its a win win situation for the contractors and the goverment, the only losers are the taxpayers.