I am not sure what is meant by "administrative costs" but it appears that many of the posters have never sold anything to a government agency and don't know all of the hoops you have to jump through just to get a contract.DocV wrote:That price is not much more than what I am considering paying the custom shop for an off-the-line 1911 in Royal Blue.McKnife wrote:$1900 per pistol?
I realize it includes extras and transportation, but my goodness!!!
Rip off.
Colt is single-source for the Marine's 1911. The price probably includes administrative costs, testing costs, costs for spares, manufacturing incentives,
etc.
For example, you must show that your company has a program in place to show that your company has a certain number of suppliers owned by minorities. Never mind that many of these operations supply inferior and more expensive product than their competitors.
A normal commercial contract may be 10 pages, but a government contract can easily run into hundreds and sometimes thousands of pages so you need a contract officer or lawyer to review it to make sure you can meet all of the requirements. If you can't meet the requirements you go back and negotiate until you can reach an agreement. This all costs time and money.
I have worked on many projects where we sold product to DOD, USAF, JPL, Navy, NASA, etc. You wouldn't believe that amount of paperwork and documentation and testing that is involved. In certain cases, you have to supply evidence of traceablity down to the heat number, chemical and physical analysis of every nut, bolt, forging and spring that you use to assemble the product. I have worked on projects where the paperwork that needs to be sent with the product weighs more than the product that we made. And to top it off, the government limits your profit margin. And when they finally decide to pay, it can take six months to get your check.
