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DoD Cost-Plus-Fixed-Fee (CPFF) Margin Simulator.

Models how defense contractors maximize their fixed profit pool by inflating approved direct costs under prime government acquisitions.

## The 'Zero Risk' Monopoly

When a standard B2B SaaS company builds a product, they risk millions of their own money. If nobody buys it, they go bankrupt. When Lockheed Martin or Anduril builds a prototype for the Department of Defense using a Cost-Plus-Fixed-Fee (CPFF) contract, the financial physics are reversed.

### FAQ

**Q: How can a CPFF contract have zero financial risk?**
A: The government literally signs a contract saying: 'We will reimburse 100% of the money you spend on engineers and titanium. On top of that, we will guarantee you an 8% profit based on your initial estimate.' This means the contractor can never lose money on materials or labor overruns. If the project costs $12M, they get their money back plus $960,000 in pure, un-loseable profit.