Tuesday, February 26, 2008

The Truth About Contractor Profits

The Federal Times has brought some interesting statistics to light. Conventional wisdom has it that private contractors in Iraq are bleeding the American taxpayer dry and making money hand over fist in the process. But in fact, the numbers tell a different story:

Sixty-nine percent of government contractors generated profit rates of less than 10 percent from their government business and 7 percent generated no profits at all.

Indeed, government contracts are hardly considered a guaranteed cash stream:

Most contractors said they view government contracting as a greater business risk than most commercial ventures.

Just further evidence that maybe these guys risk their lives because they're patriots, not money-grubbers.

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