Contract Pricing and Negotiations

You are the Director in" rel="nofollow">in charge of developin" rel="nofollow">ing a contract-pricin" rel="nofollow">ing model for a complex project – to modernize U.S. Navy Aircraft Carrier shipboard radar systems. Develop a 12-month, high-level pricin" rel="nofollow">ing plan that proposes 100 employees at these levels and numbers of FTEs: 1 Director, 5 Senior Managers, 20 Senior Developer, and 74 Developers. Use these base (direct cost rates): Director: $100/hour, Senior Manager: $75/hour, Senior Developer: $65/hour, Developer: $50/hour. The overhead rate is 10%, the G&A rate is 15%, and the permitted fee/profit is 10%. With this in" rel="nofollow">information, develop the overall costs for the project over the 12 months answerin" rel="nofollow">ing the followin" rel="nofollow">ing questions: 1. Show the cost build for each of the above labor categories, and show the overall cost to the client for each of the four categories as well as the total cost of the combin" rel="nofollow">ined four categories (this combin" rel="nofollow">ined cost is the cost that would be presented to the federal client). Include in" rel="nofollow">in your cost build-out any Indirect costs that you believe are appropriate/related to this proposal. 2. List all of your assumptions for the costs built in" rel="nofollow">into the response to question 1. Resource: Compton, P. B. (2009). Federal acquisition: Key issues and guidance. New York, NY: Management Concepts Inc.