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NEW QUESTION: 1
The customer has negotiated a cost plus incentive fee contract with a vendor. The contract has a target cost of 300,000, a target fee of 40,000, a share ratio of 80/20, a maximum fee of 60,000, and a minimum fee of $10,000. If the seller has actual costs of 380,000, how much fee will the vendor collect?
A. $24,000
B. $404,000
C. $10,000
D. $60,000
Answer: A
Explanation:
The CPIF is a theoretically a cost-reimbursable contract. However, with the addition of the share ratio and the incentive fee, thresholds are set for the minimum and max fee that the vendor can achieve. So, if the actual cost was much lesser than the target cost, the sum of the vendor's share of the cost savings plus the target fee will still cap at the max or ceiling fee. Similarly, even if there were major cost overruns, the vendor would be assured of getting the minimum fee. In this particular example, the max and min fee seem to be extraneous information (we don't need to use them).Target cost = 300K, Actual cost = 380KTarget fee = 40K, Max fee = 60K, Min fee = 10K Share ratio = 80/20Cost overrun = (380K 300K) = 80KVendor's share of the cost overrun is 20% of 80K = 16K Vendor's fee = target fee - vendor's share of cost overrun= 40K 16K = 24KWe make sure that the vendor fee is greater than the min fee and not greater than the max fee. So, Answer (b). The vendor will collect 24,000. Minimum and Maximum Fee caps will be useful in the following cases: If the actual costs are more than $450,000, the seller will pay 20% of the $150,000 over target, $30,000. At this point, the sellers fee is at the minimum of $10,000, and the seller will get this amount of profit no matter how much more over-budget the project goes. If the actual costs are less $200,000, the seller collects 20% of the
$100,000 under budget, or $20,000 dollars. The fee will be at the maximum of $60,000, and the seller will get this fee no matter how much more under-budget the project goes.
NEW QUESTION: 2
DRAG DROP
You are the system administrator for a company.
You need to deploy Windows to Go for all users.
Which four actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Select and Place:
Answer:
Explanation:
NEW QUESTION: 3
DRAG DROP
The first phase of PPDIOO entails identifying customer requirements. Drag the example on the left to the associated requirement on the right.
Select and Place:
Answer:
Explanation:
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