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You are responsible for a cost proposal for a very large procurement.
The RFP instructions state the following: "Provide a target cost in constant FY 2004 dollars for each fiscal year shown in the table. Determine the total escalation of the target cost and provide it in the table as a separate item by fiscal year. In addition, include the basis for escalation of the target cost. The Offeror's estimate shall provide year-by-year expenditures and the corresponding yearly escalation rate, expressed as a factor to be multiplied by each preceding year.
Following these instructions, the technical estimators have come up with the following baseline cost:
Year FY04 FY05 FY06 FY07 FY08
Target Cost $10M $50M $20M $15M $10M
Escalation Rate
Escalation Amount
Total
Complete the table with the escalation and the costs. The escalation rate you used was 3.2% each year.
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