Cost Plus Inventive Fee Contract

Cost Plus Inventive Fee Contract

  1. Given the following data, develop an appropriate CPIF pricing arrangement.

Cost Fee
Target $100 $10
Optimistic $ 80 $12
Pessimistic $120 $ 7

a. What should be the maximum fee?

b. What should be the minimum fee

c. What should be the under-target share ratio?

d. What should be the over-target share ratio?

e. What is the range of incentive effectiveness?

  1. Given the following data for CPIF pricing arrangement

Target Cost $200
Target Fee $ 16

Share Ratios:

Under target 80/20
Over target 85/15
Maximum Fee $ 26
Minimum Fee $ 10

What is the range of incentive effectiveness?

  1. Given the following information regarding a CPIF contract, what would be the final contract price at the different final cost amounts.

Target Cost $2,000,000
Target Fee $ 150,000

Share Ratio:

Under Target 90/10
Over Target 80/20
Maximum Fee $ 240,000
Minimum Fee $ 60,000

a. Final cost is $1,000,000

b. Final Cost is $1,800,000

c. Final cost is $2,150,000

d. Final cost is $2,400,000

ORDER A SIMILAR ESSAY WRITTEN FROM SCRATCH at : https://www.topgradehub.com/

PLACE YOUR ORDER