Dear expert please help me to solve this study case

Case Study Payton Corporation Payton Corporation had decided to respond to averment for the RADplasena new project The statement of work specified that the project must be completed within ninety days after heal and that the contract would be at a fixed cost and foc The majority of the work would be accomplished by the development lah. Acoming to government regulations, the estimated cost must be based on the average cost of the entire Separtment, which was $19.00 per beur(unburdened Payton won the contract for a total package foot plus fee) of 5305.000. After the fint weekly labor report was inalyzed, it became evident that the development lab was spending 528 50 per how. The project manager decided to discuss the problem with the map of the development la Prywer "Obviously you know why hetAt the rate that you're spending money. we'll even our budget by 50 percent." La manger "That's your problem, not mine. When I estimate the cold to do a job. This only the ho necessary based on historical standards. The pricing department converts the best dollar based on department veel Project manager Welt, why wewe using the most expensive pouple? Oblously there must be lower-alaried people capable of performing the work Landger "Yes I do have lower salaried people, but one who can complete the job within the two months required by the contract. I have to use people high on the learning curve and they're et cheap. You should have told the pricing department to increase the went for the department Prayer with could, but government regulations fortid this. If we were over andned. ce if this proposal were compared to other salary structures in other proposals, we would be in deep trouble. The only leal way to accomplish this would be to set up a new department for those higher paid employees working on this project. Then the average department salary would become Unfortunately the ministrative costs of setting up a temporary unit fe only two months prohibite. For long-duration projects, this technique is often amployed "Why couldn't you have increased the hours to compensate for the nese dollars required La manager" have to submit labor justifications for all hours estimate were to get audited my job would be on the line. Remember, we had to womit labentification for all of the proposal Perhaps next time management might think twice before bidding on a short duration peoject You might try talking to the customer to get his opinion Proler Master "His response would probably be the same regardless of whother explained the situation to him before we submitted the proposal or now, after we have negotiated it. There's a good chance that I've just fout my Christmas bonus QUESTIONS What is the basis for the problem 2. Who is at fault? How can the present situation be corrected Is there any way this situation can be prevented from recurring? How would you handle this situation on a longer-duration project, say one year, assuming that multiple departments we involved and that no new departments were established other than possibly the project office Should a customer be willing to accept monetary responsibility for this type of situation, possibly by permitting established standards to be deviated from? If so, then how many months should be considered as a shon-duration project