In certain high-cost defense contracts involving new weapons and equipment, contracts are rarely subject to competitive bidding because:
A)the government is concerned that one firm might monopolize defense contracts
B)there is an implicit agreement among defense contractors to "share contracts"
C)all defense contractors have essentially the same cost structure
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

In high-cost defense contracts, competitive bidding is often not used because the contracts are complex and require specialized expertise, which limits the number of capable contractors. Additionally, the government may prioritize reliability and past performance over cost.

In Certain High-Cost Defense Contracts Involving New Weapons and Equipment