Assignment 3 Estimating Overview For this assignment, we are going to change our point of view. You are now working for Woolly. Mammoth has just awarded Woolly a fixed price contract to handle the transition of the Saber staff. Mammoth has awarded Woolly a fixed-price contract for $120,000 to complete the transition of the 12 Saber staff. Of the 12 Saber staff, 5 will be released and the remaining 7 will be transferred to Mammoth. You have been asked to prepare a detailed estimate for the work. Since Woolly has done transitions many times, you have access to good historical records, and the consultants in each city have been assigned to prepare detailed estimates that can be used to prepare the overall detailed estimate. Working with the team, you have assembled the following information. Activity Unit Quantity Rate Comments Consultant Hours 140 $100 Based on 20 hours per staff member being Transferred Consultant Hours 150 $100 Based on 30 hours per staff member being released Administration Hours 120 $50 Based on 10 hours per staff member support Legal Support Hours 50 $200 You have experience with Saber locations Communications Hours 50 $100 Communications with Mammoth and responding to staff questions Staff meetings Meeting $500 Six meetings at Saber's locations to meet with staff Release meetings Meeting 5 $1,000 An in-person meeting with each of the 5 Saber staff being released Offer Package Staff 12 $2,000 To prepare customized packages for each staff Preparation member, including legal review Staff Coaching Staff 5 $6,000 Outsource support for staff members for 90 Program days, deluxe program For this estimate, there is no need to add overhead and contingency, it is embedded in the rate. In talking to the Project Sponsor, they would like you to include $20,000 profit to the cost baseline. The Project Sponsor also made it clear that you need to ensure the cost baseline does not exceed $120,000. With this information, you go back and review your estimates. In talking to the team in preparing the estimate, they did suggest some areas for possible cost reduction if required: . Do all of the staff meetings virtually, at no cost. The contract did not specify if the meetings had to be virtual or in person. From experience, in-person is better. UNIVERSITY OF TORONTO SCHOOL of CONTINUING STUDIES 3976 - Project Tools and Techniques Do half of the staff meetings virtually, with half the cost. The contract did not specify if the meetings had to be virtual or in person. From experience, in- person is better. Change the Staff Coaching Program from deluxe to premium at $4,000 per person. The premium package meets the contractual requirements. Change the Staff Coaching Program from deluxe to basic at $2,000 per person. The base package meets the contractual requirements. The team feels that for Mammoth, the consultant hours would be closer to 15 hours per staff member being transferred instead of 20 hours. Creating a FAQ document at the cost of $1,000 would reduce the administration support hours by 50%