As another point, the book Burning Money from the Chairman of Reagan's Committee on Cost Control, J. Peter Grace:
"The Federal government is Burning Money and it is your money. An actual case. One day the US Navy decided to buy a hammer, the kind you buy for $7 at the corner hardware store. To the $7 cost of the hammer, add: $41 to order the hammer and figure out how to use it. $93 to make sure the hammer worked. $102 for "manufacturing overhead. " $37 to make sure there were spare parts for the hammer. $3 for packing the hammer for shipment. $90 for the contractor's general administrative costs. $56 for the finder's fee. $7 for the capital cost of money. The U.S. Navy ended up buying a $7 hammer for $436, and who paid for it? You."
"The Federal government is Burning Money and it is your money. An actual case. One day the US Navy decided to buy a hammer, the kind you buy for $7 at the corner hardware store. To the $7 cost of the hammer, add: $41 to order the hammer and figure out how to use it. $93 to make sure the hammer worked. $102 for "manufacturing overhead. " $37 to make sure there were spare parts for the hammer. $3 for packing the hammer for shipment. $90 for the contractor's general administrative costs. $56 for the finder's fee. $7 for the capital cost of money. The U.S. Navy ended up buying a $7 hammer for $436, and who paid for it? You."
http://www.paperbackswap.com/Burning-Money-Waste-J-Peter-Gra...