Project Cost Data:

$$ Project duration is $9$ months.

$$ Software licensing for a total cost of $$60,000($a one$-$time cost$)$ is required during month $3.$

$$ System hardware installed on site is estimated to cost the firm $$240,000$ including shipment to the firm$$s

location. The hardware must be unpacked, inspected, tested, and repacked at the firm$$s location and then

shipped to the customer site at a cost of $$6,000.$

$$ On$-$site hardware installation and testing will be subcontracted at a cost of $$20,000.$ Installation should be done

no earlier than month $6,$ will require two weeks, and will be paid to the third party the month after it is

completed.

$$ PM staff labor cost is $$8,000$ per month for the duration of the project.

$$ Refinement and confirmation of system requirements $($stretched evenly over months $1$ and $2)$ will require $160$

hours at the rate of $$110/$hour$,$ plus two customer site visits at a cost of $$2000$ per trip.

$$ Software development is expected to begin in month $2,$ span $5$ months and require $3,000$ hours of effort. The

labor rate for software developers is $$130/$hour$.$

$$ Software testing will be conducted by a third party in month $7($some overlap with development is expected$),$

takes $5$ weeks and will be paid when completed. The cost charged by the third party is $$40,000.$

$$ On$-$site software installation and system testing $($month $8)$ is expected to take three Full Time Equivalents $($FTEs$)$

two full weeks each $(5$ workdays per week$)$ including travel time. The labor rate for on$-$site installers$/$testers is

$$80/$hour and travel costs for the team is $$4,000.$

$$ Training preparation $($month $7)$ will require $95$ hours at the rate of $$100/$hour$.$

$$ On$-$site training delivery $($month $9)$ will take $40$ hours at a rate of $$100/$hour$.$ Travel costs will not exceed $$2,000.$

$$ Total project overhead, not including the PM staff labor cost, is an average of $$10,000$ per month.

$$ $$20,000$ has been set aside each of the last $3$ months as a reserve. Include this figure in your budget.

$$ Markup any material costs and third$-$party fees by $20\%$ in the cost baseline.

$$ Hourly labor rates listed above are fully burdened.

$$ This baseline or budget does not include the profit or other firm administrative costs