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

Multiple Choice

In certain high-cost defense contracts involving new weapons and equipment, contracts are rarely subject to competitive bidding because ________.

A) the government taxes the defense companies at a higher level than that of other public sector companies
B) there is an implicit agreement among defense contractors to "share contracts"
C) all defense contractors have essentially the same cost structure
D) no contractor is willing to assume all the risk of receiving a fixed price for the contract