In that climate of uncertainty the U.S. Agency for International Development opted for a cost-plus, fixed-fee deal--a contract often used by governments to exert some control over costs and give the contractor incentive to engage in open-ended work.

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Workers would benefit from access to health plans even in the event of a layoff, while companies would be able to pass along 100% of the insurance cost to former employees, plus a 2% fee.

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Speed is also a factor: Cost-plus deals diminish negotiating time once the contractor's fee has been set.

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