# Integrating Case - Breakout 1.xlsx - Three Point Roll Up...

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Three Point Roll Up Low Obj. High Material \$1,425,000 \$2,000,000 Material O/H \$71,250.00 \$100,000.00 Fabrication \$648,900.00 \$999,600.00 \$1,600,200.00 Assembly/QC \$1,325,100.00 \$1,785,000.00 \$2,415,000.00 Mfg. O/H \$3,651,900.00 \$5,151,510.00 \$7,428,120.00 Eng. Labor \$600,100 \$709,750 \$819,400 Eng. O/H \$750,125.00 \$887,187.50 \$1,024,250.00 ODC \$115,880 \$120,125 \$124,371 Subtotal Cost \$8,588,255 \$9,653,173 \$15,511,341 G&A \$687,060 \$1,240,907 Total Cost \$9,275,315 \$9,653,173 \$16,752,248
5% Indirect Rate \$21 Hourly Rate \$21 Hourly Rate 185% Indirect Rate \$34 Hourly Rate 125% Indirect Rate ODC Tab 8% estimated rate
PART 1 1.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 price percentage? What are the implications of this ceiling per
PART 2 1. Given the data above, and using the Risk Template tool, identify the appropriate distribution for all the cost elements and c Cost?
2.
Yes, CV in Low (Risk is Low) Risk analysis indicated a range of 2,256,506 and divided one million by of range to get 44.3% Ktr co
Profit = 6.08% = \$770,096
a. Based on inputs from the PM office, the team made the following assumptions: ii. The amount of contractor risk in the Technical and Management/Cost control areas 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%.
b. Using the “Mean“ values from the Risk Template and the above assumptions, what Profit amount (\$ and %) does your analy 5.
a. Consider that your PM is interested in pursuing a ceiling price of 120%. What is the calculated Ceiling Price?
b. What is the probability that a contractor would come in below the Ceiling price under this scenario?
c. Using the share ratio derived in Question 3, calculate the Point of Total Assumption cost (PTAcost) amount.
d. What would a contractor’s profit amount be under this scenario, if the final cost were exactly the same as the PTAcost?
No, you will make changes to get out of the geo 7. If the team’s answer to Question 6 is no, how could this situation be corrected?
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