8/15/18

US Gov Five Year Contract Plans

Some U.S. Government contracts that presently are set out at one year will go to five year spans in starting in 2019. That may benefit big players more so than small businesses that don't always have five years of security ahead. An example; if the economy changes much a big business might be able to withstand inflation or deflationary changes better than a small business. Four years to go on a contract with a small profit margin in a volatile cost-supply production market is tough

While one can imagine Donald Trump signing the Declaration of Independence more so than Hillary or several other Democrats that would have instead probably have sought a cozy position with royal governors, the changeover from one year to five on government contract duration for numerous services seems like a benefit for the concentration of wealth and globalism instead of nationalism and small business.

One must wonder about military contracts and if they too would be held as tightly on a fiver year plan if they find cost over-runs; wouldn't the government just give the Haliburtons of the business world some kind of cost-plus extension? Would five year contracts involving foreign entities as prime or subcontractors be in more antipathetic relations potentially as foreign relations might change faster than contractual relationships. For example; what if China recognizes Taiwan's independence as if then given more five year contracts, and thereafter reverses course and again declares Taiwan a rogue province?

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