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A government contractor is a private company that produces goods or services under contract for the government. Often the terms of the contract specify cost plus – i.e., the contractor gets paid for its costs, plus a specified profit margin. Laws often require governments to award contracts to the low bidder. Some communities are largely sustained by government contracting activity; for instance, much of the economy of northern Virginia consists of government contractors employed directly or indirectly by the federal government of the United States.
Section 12(2) and (3) of the Official Secrets Act 1989 define the expression "government contractor" for the purposes of that Act.
- Antier, Cheryl. "How to Get Started As A Government Contractor". score.org. Retrieved 2009-04-26.