Government contractor

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.

See also

• Defense contractor