Why A Good Specification Is Important

The US Militery hired a few companies to help them complete the invasion of Iraq. To do this they setup service agreements with those companies so the Military became a paying customer to those companies, but it looks like they forgot to agree any levels of quality. The US Militery wanted warter, they got warter, but it wasn't safe to drink. Let this be a lessen to you if you ever setup a SLA (Service Level Agreement) with anybody because unless you specify what quality standard you need the work doing too, it won't be done to any quality standard.

And on the video they mention Cost-Plus, which is effectively the government telling the contractor to just bill them whatever the cost is. This is common is situations where price comparison or price negotiation isn't worth doing, but silly things happen when you give someone your credit card and tell them to buy whatever they want.