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"What generated a lot of talk were Held’s comments about ... a move away from high fees and profit-making and a move toward the greater interests of the nation. When federal contractors hear references to the government possibly chopping fees their ears tend to get a little bigger.
My recollection (which is not guaranteed accurate) is that the Labs did not ask for high fees. AT&T's no-fee, no-risk contract at Sandia was up for renewal in 1993 and DOE Secretary Hazel O'Leary insisted Sandia have a fee-based contract so she could punish the contractor by withholding fees if something went wrong. AT&T said no way; Martin Marietta (which soon merged with Lockheed) got the fee-based contract.
2 comments:
"What generated a lot of talk were Held’s comments about ... a move away from high fees and profit-making and a move toward the greater interests of the nation. When federal contractors hear references to the government possibly chopping fees their ears tend to get a little bigger.
My recollection (which is not guaranteed accurate) is that the Labs did not ask for high fees. AT&T's no-fee, no-risk contract at Sandia was up for renewal in 1993 and DOE Secretary Hazel O'Leary insisted Sandia have a fee-based contract so she could punish the contractor by withholding fees if something went wrong. AT&T said no way; Martin Marietta (which soon merged with Lockheed) got the fee-based contract.
Thanks to whoever posted this article. Clarified the remarks and context.
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