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That is what the contractor wants you to think...You have to report O&M as part of the project cost because many our weapons platforms uses sophisicated weapons systems that must be maintained by the contractor. We just don't have the expertise or can't retain the skilled technicians.
Trust me I am a Defense Contractor and here to help
(but seriously I have been on this side of the aisle since 2009 -and it doesn't do the Services any favors)
I can pretty much guarantee over half of the Contractors team are prior service folks - making more now - and the contractor making even more.
This is the same model used in the US - and basically everyone I run into on a base working for one of the OEM's is prior service - Senior Officers/GOFO for sales and BD - and NCO tech trades for the actual work.
Part of this is due to Service related manning caps (PY's) and the fact that no Western Army has an acceptable number of support personnel to do the work.
Part of the problem with those FFP, or Cost Plus Support Contracts is they generally stick you into the Manufacturers upgrade schedule - as you CANNOT do certain things to the platform without approval - so you can add XYZ part to the system - even if it is a better fit for your needs.This is the same for most Western countries around the world. The CAF needs to know this for budgetary planning purposes. The CAF is expensive to operate because the Navy, Army and Air Force wants the latest technology. In general : high tech = high operational / logistical cost.
I am that Air Force and Navy project teams are like this since we are gpverned by the same regulations.