A firm is preparing a fixed price proposal that includes a subcontractor. The subcontractor estimates their cost at 140,000, plans to add a reserve of 5.0%, and on top of that a markup of 15.0%. The firm estimates their direct cost excluding the subcontract at 280,000 with no reserve.

a. What is the total price that the subcontractor seeks for their project work? (2 p)

b. If the firm adds a markup of 12.0% to total cost including the total amount it is obligated to pay the subcontractor what is the total price in the proposal? (3 p)

A fixed price contract totaling 4.4 million had a budget profit of 440,000 with no reserve. In a progress report the CEV was given as 2.75 million and actual cost was 2.85 million. What is the forecasted (estimated) profit in units of currency using forecasting based on the assumption that cost performance on the contract to date will continue for the remainder of the project (based on CPI)?

Answer rating: 100% (QA)

Fixed Price Proposal with Subcontractor a Total Price of Subcontractor Work Start with the subcontra... View the full answer