Terms of the contract

Assignment Help Operation Management
Reference no: EM13808846

From the case study, the last TRDSS contract for K though L was signed as a fixed price incentive fee (FPIF) contract. The terms of the contract were as follows, all in US Dollars:

Target Cost: $618 million

Target Fee: $79 million

Target Price: $697 million

Ceiling Price: $772 million

Share ratio: 70/30 (buyer/seller)

Schedule incentive: $1.25 million/month

Calculate the following values based on the scenario costs below:

1. Buyer's share (amount based on share ratio)
2. Seller's share (amount based on share ratio)
3. Adjusted fee
4. Contract price

Scenario 1:

Project Cost = $525 million

Scenario 2:

Project Cost = $926 million

Scenario 3:

Project Cost = $710 million

 

Ignore the schedule incentive listed in the case study and only focus on the cost incentives within the contract type. Show how you calculated the values listed in 1-4.

Include a 1 page summary analysis of the affects of each scenario pages including calculations.

Reference no: EM13808846

Questions Cloud

How does the organization motivate its employees : How does the organization motivate its employees? Describe any programs or methods they use to motivate workers. If the organization does not have any employee motivational strategies.
Calculate the total infiltrated depth : How does these values compare to the measured field values at 20, 60 and 90 minutes - Calculate the total infiltrated depth, F(t) at 20, 60 and 90 minutes using the parameters you have obtained using Horton's equation for cumulative infiltration (F..
Negotiation of a business transaction in china : Suppose you have been selected to represent your organization in the negotiation of a business transaction in China. Before leaving for China, you prepare yourself by learning the most widely used and accepted negotiation styles and strategies in ..
Draw the final figure in red-black tree : Draw the final figure in Red-black tree by inserting the abbreviations of states NY, IL, GA, RI, MA, PA, DE, IN, VT, TX, OH, and WY into an empty tree in that order. Describe those steps where red-black rules are violated and what actions you have..
Terms of the contract : From the case study, the last TRDSS contract for K though L was signed as a fixed price incentive fee (FPIF) contract. The terms of the contract were as follows, all in US Dollars:
What external and internal factor affect and how we identify : What external and internal factors affect how we identify ourselves racially/ethnically? How important is it to have or claim such an identity?
Mexican vs united states culture : Mexican vs united states culture
Cost of equipment maintenance and of scrap : Your competitor's cost of equipment maintenance and of scrap (goods that do not meet quality standards and must be discarded) is .5% lower than yours. The engineers have repeatedly found from thorough analysis that the fact that you've been in bus..
Apply a sociological perspective to the social world : Apply a sociological perspective to the social world

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd