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Evaluating New Contract Profitability

MediumStrategy00:00
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Your question is Evaluating New Contract Profitability. Take a moment with it on the right.

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Problem

Scenario

You're advising a defense technology company that is considering a new government contract tied to deployment of autonomous systems and the supporting software stack. Leadership is excited because the award would expand the installed base for a platform like Lattice, but the contract also includes hardware integration, field support, and milestone-based delivery terms that could create cost overruns. Some costs are obvious at signing, while others depend on deployment complexity, sustainment needs, and change requests over the life of the program. You need a clear way to judge whether the deal is actually attractive, not just large.

Question

How would you evaluate the profitability of a new contract?