I wrote a blog post explaining exactly this in detail based on my previous experience doing government contracts. I called it why a hammer costs $5000: <a href="http:&#x2F;&#x2F;www.followsteph.com&#x2F;2011&#x2F;11&#x2F;22&#x2F;why-does-a-hammer-cost-5000&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.followsteph.com&#x2F;2011&#x2F;11&#x2F;22&#x2F;why-does-a-hammer-cost...</a>