Week 2 Integrating Case - Team 3.xlsx - Team 3 Responses...

This preview shows page 1 - 3 out of 12 pages.

Tea
am 3 ResponsesPart 11.In Excel, spread the Low, Objective and High positions by cost element andcalculate a Total cost for each position.
2.Using the high position as the ceiling price, what is the ceiling pricepercentage?What are the implications of this ceiling percentage?
Part 21. Given the data above, and using the Risk Template tool, identify the appropriate distribution for all the costelements and calculate an estimated Target Cost?
2. From the output derived, what would appear to be an appropriate contract type for this requirement? Supportyour answer.
3. The PM decides that, if necessary, and in fairness to any prospective offerors, the Govenrment would be willingto share between the 10th and 90th percentile of potential cost outcomes. She would like the team to investigatethe use of an FPI type structure. She anticipates having a reward pool of about $1M. Is an FPIF arrangementappropriate for the effort? Support your answer. Calculate the share ratio.
a. Based on inputs from the PM office, the team made the following assumptions:4. The team decides to use an FPIF contract type and performs its own "what0if" analysis with regards to profitand its application to the associated share ratio.
ii. The amount of contractor risk in the Technical and Management/Cost control area are about the same.iii. The substantive portion of work is less than 21 months.iv. Progress Payments will be included in the solicitation.v. OMB's published interest rate is 1%.vi. FCCOM is excluded from this analysis.WGL tab.6.08% or $779,108
5. Given the team's risk anslysis data and the results of the team's profit "what-if" analysis from Question 4:a. Consider what your PM is interested in pursuing a ceiling price of 120%. What is the calculated Ceiling Price?

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 12 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Summer
Professor
Tony Stout
Tags
FPIF

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture