Essay About Rich Manufacturing

Essay about Rich Manufacturing
Rich Manufacturing
Saint Leo University
MBA 540
Sep 8, 2011
Why do many firms use cost–plus pricing for supply contracts?
Firms use cost–plus pricing in order to cover their operating costs. Cost–plus means they can
increase the price to their customers with whom they have contracts when the operating costs rise.
Operating costs can rise for many reasons and cost–plus pricing allows firms the flexibility to
manage operating costs. This flexibility is often needed when the price of a service or good is not
known or hard to predict in advance (Magloff, 2011).
What potential problems do you envision with cost–plus pricing?
Potential problems may occur if there is no contract between the firm and its customers for ... Show
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In the short term, it may be beneficial to complete the contract with Bhagat and for long term
planning, find another supplier with a more competitive price. She can use the short run cost curves
to determine her near term pricing and production requirements. The long run cost curve can be
used to determine if a new plant or new supplier is necessary to decrease operating costs.
How will a $3 increase in the price of machine parts affect Gina's own production decisions?
The three dollar increase will be added on to Rich Manufacturing's product price. In order to lessen
customer anger over increased prices, Gina can suggest an increase in the marketing budget to
minimize the price increase. She also may want to take into consider the long term plans. For
example, if in the long term they can decrease the price while increasing production (perhaps with a
new supplier); they may want to absorb the current increase in price instead of passing it on to their
customers. In the short term, money may be lost, but with successful long term planning they can
increase profits and maintain customer loyalty (by not increasing price).
References

Brickley, J., Smith, C. & Zimmerman, J. (2009). Managerial Economics and Organizational
Architecture. (5th Ed.). New York, NY. McGraw–Hill and Irwin.
Magloff, L. (2011). What Is Cost–Plus Pricing Strategy? Demand Media. Retrieved from:
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Atlantic Computer
Situation: * Atlantic Computer is a manufacturer of servers and high–tech products * Two market
segments: High performance and Basic Servers * The Tronn was developed mainly for the emerging
US market opportunity for basic web servers * The Performance Enhancing Server Accelerator
(PESA) allows Tronn to perform four times faster than its usual speed for standard procedures *
Atlantic has 20% market share in High Performance Servers with Radia * Two Tronn servers
equivalent to four Zink servers
Decision to be made: * The management team needs to decide the pricing strategy for the Atlantic
Bundle: Tronn&PESA
Alternatives and Pros&Cons: Alternatives: | Pros: | Cons: | Result: | Status quo pricing ... Show
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Although Competition Pricing provides the highest profit per unit, the customers will still question
about the reliability of both Tronn and PESA and the true value they are receiving from the bundle.
By demonstrating the value–in–use pricing strategy, the customer will then be fully aware of the
true value brought by Atlantic Bundle in monetary terms.
Target market: * The target customers will be those mid to small size companies that do a lot of web
services. When the Tronn is acting web hosting with PESA, it truly demonstrates four times of
speed as a basic server. In addition, when there's file sharing involved, Tronn is still capable of
doing two times of speed as a basic server. As a result, companies that involve with primarily web
hosting activities will receive the most benefit from the Atlantic Bundle.
Possible Customer response: * Customers will surely question about the reliability and functionality
of the Atlantic Bundle. Atlantic computer will then need to demonstrate the reasons deviating the
software from the tradition cost–free to further show the value of the bundle. In addition, Atlantic
Computer will need to emphasize on the saving the bundle will bring, and the excellent after–
service they will provide.
Possible Competitor response: * Although the introduce of the Atlantic Bundle will not have

The Effect Of Changing Demand On Kokosing 's Pricing...
Introduction Problem Statement This paper will study the effect of changing demand on Kokosing's
pricing strategy, specifically when conducting government funded projects. Background Kokosing
Construction Company is a large construction firm based in Ohio that primarily conducts highway
projects for the Ohio Department of Transportation (Kokosing, 2009). Due to the nature of the
projects conducted by Kokosing, the company's pricing strategy is unique since the projects must
first be won through bidding. Due to high competition and the nature of the projects, Kokosing
essentially uses a cost–plus pricing strategy to determine their bids. Therefore, Kokosing has the
ability to alter their price and profit margin for each project. Moreover, this scenario is unique
because Kokosing has the opportunity to use the price to their advantage: during low demand they
can decrease their profit margin to win bids and gain projects and vice versa during peak demand.
Thus, research will be conducted to determine if demand truly does have an effect on Kokosing's
pricing strategy and the reasoning behind the strategy. Overview In order to investigate the problem
statement, in section 2 the theories of cost–plus pricing and elasticity of demand will be defined and
explained in depth. Additionally, section 2 contains the discussion about how each theory addresses
the problem statement. Section 3 will contain the research conducted, specifically an overview of
the information gained

Construction Contract Essay
Assignment 1. For the following types of undertakings, which contract modes are most appropriate?
Be prepared to explain the rationale behind your choice. We want to order a pencil manufacturer to
produce 20,000 pencils for us When ordering a set number of items from a manufacturer who is in
the business of making that product and will not have to engage in any research, development, or
real custom work, the standard contract would be a fixed–price contract . This scenario describes a
simple bulk order of an item. Therefore, in this situation, the most appropriate contract mode is the
fixed price contract. This allows the company to receive a number of bids for the 20,000 pencil
contract and compare the costs in those bids. It also does not put the seller at tremendous risk
because they do not face tremendous variation in the costs of their supplies for manufacturers. Also,
as the purchaser fixed price contracts are good for purchasers, because the sellers bear most of the
risk of the contract. We want to have a 300 meter bridge built to span a local river When engaging in
a construction contract, time is of the essence and running over time projections can cause literally
millions of dollars in additional non–contract costs. Therefore, construction contracts that can
provide incentives to complete the project on time or early are beneficial because they effectively
penalized contractors who fail to deliver on–time performance. With a CPIF contract, the

Proj598-Week-3-Quiz1 Essay
1. | Question : | (TCO B) All of the below would be considered good selection criteria for a buyer to
use to select a seller, except | | | Student Answer: | | proprietary rights of buyer, overall cost, and
warrantee offered by seller. | | | | past work done by seller, intellectual property rights, and risk
associated with a given seller. | | | | technical capability of seller, understanding of work by seller,
and business type of seller. | | | | managerial approach of seller, capacity of seller to do the work, and
ability of seller to make a reasonable make–or–buy decision. | | Instructor Explanation: | PMBOK®
Guide, Chapter 12 | | | | Points Received: | 10 of 10 | | Comments: | | | | ... Show more content on
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The process involves monitoring performance, managing interfaces if there are multiple providers,
making changes and corrections, and processing interim payments (often called progress payments
which are based on the seller's progress in completing the work). In some cases, contract
administration involves managing the early termination of a contract (for cause, for convenience or
for default). Close Procurement The process of completing each project procurement. It supports the
CLOSE PROJECT or PHASE Process. Contract closure supports the close project or phase. It
involves product verification (was the work completed correctly?) and administrative closeout
(updating and archiving of records). Early termination is a special case of contract closure and can
result from a mutual decision, from default by one of the parties, or for convenience of the buyer.
The rights of the parties should be defined in a terminations clause in the contract. The buyer
provides formal, written notice that the contract has been completed. | | Instructor Explanation: | See
the PMBOK® Guide, Chapter 12.Plan procurements
Conduct procurements
Control procurements
Closeout procurements Students must list and explain what occurs in each process. | | | | Points
Received: | 30 of 30 | | Comments: | | | |
Question 3. | Question : | (TCO C) Compare and contrast a firm fixed–price contract with a cost–
plus contract. When would each be appropriate for

Citysoft Case Essay
ACC503–CitySoft Case Analysis
1. Should we be concerned that CitySoft is focusing on cost, operational control, systems, and
quality at the expense of growth?
Answer: We don't need to be concerned about this issue too much. Actually CitySoft has been
growing fast since 1998 to 1999, and it is the time to focus more on its cost, operational control and
systems in order to improve CitySoft's profitability in the future. Refining the process of operation
and cost management is quite necessary for CitySoft at this point, because if it kept expanding
without improving its cost, operational control and system management, it would make little profit
according to the huge cash flow. We can see clearly that CitySoft has already invested much ...
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If a good cost–measurement system was set up, cost–plus contracts will demonstrate the advantages
of cost–management better than fixed price contracts do. With a robust cost–measurement system,
managers are able to know the real revenue drivers, to recognize the most valuable customers, and
to offer more reasonable price bid. That is to say, cost–measurement system's strength lies in
differentiating clients' value, projects' value and operation processes' value case by case. Under this
circumstance, cost–plus contracts would surely dig more utilization and benefit more from such a
system, because CitySoft would be able to charge different customers and projects for different
prices, which is critical for increasing profitability. 5. What reports will CitySoft need to make those
one–time decisions and decisions it will have to make on an on–going basis (in Question #2)? Who
should prepare those reports, who should have access to these reports, and how frequently should
they be prepared?
Reports need to make | Report | Prepared by | Access permit | Frequency | One time decisions
One time decisions | Expansion or Management Improvement | Finance & Operation & Business
Development managers | Managers | Once | | Fixed Fee Contract or Cost–Plus Contract | Operation
& Finance department managers | All employees | Once | On–going based decisions
On–going based

Financial Accounting Case Study
LH Fall 2013 RSM 221 Individual Assignment 1 Suggested Solution Question 1: Problem Exhibit 1
Purpose: To determine the percentage of completion for the selected contract in order to determine
the company 's revenue and gross profit (loss) for 2014, 2015 and 2016. Percentage–of–Completion
(Cost–to–Cost Basis) Contract price: (A) Costs: Opening balance of costs Costs incurred during the
year Costs to date (B) Estimated costs to complete Estimated total costs (C) Estimated total gross
profit (loss) Percent complete (B/C) 2014 $9,500,000 0 3,910,000 Note 1 3,910,000 5,660,000
9,570,000 (70,000) 40.86% 2015 $9,500,000 3,910,000 5,050,100 Note 3 8,960,100 625,000
9,585,100 (85,100) 93.48% Revenue ... Show more content on Helpwriting.net ...
 Furthermore, it assumed that each phase of the contract is equally important to the customer, this
contract does not involve a significant act that is more significant than all the others. Alternative #1:
Stage of Completion  IFRS requires revenue and cost from construction contracts to be recognized
by reference to the stage of completion of the contract activity at the end of the reporting period,
provided the outcome of the contract can be estimated reliably.  In order for the outcome of a
construction contract to be estimated reliably, the following four conditions must be met: 1. The
total contract revenue can be measured reliably  All contracts are for fixed amounts and thus can
be measured reliably by using the final contract signed by the customer. 2. It is probable that the
economic benefits associated with the contract will flow to the entity  For the sample of contracts
reviewed, all progress billings were received on time thus suggesting that there are no major
collection issues with AMI's clients 3. Both the contract costs to complete and the stage of contract
completion at the end of the reporting period can be measured reliably  Since AMI's systems to
track progress have been significantly improved for the past five years, there is no evidence to
suggest that AMI is not able to properly track costs incurred or properly estimate the

The New Owner Of This 3 Bedrooms Flat With A Front View On...
To confirm you are the new owner of this 3 bedrooms flat with a front view on Bondi beach, you
have signed a contract with the seller, generally through an agency and a solicitor. A contract is a
written or spoken agreement between two or more parties for the doing or not doing something
specified. An agreement can be enforceable by law. Types of contract On the business field, a
contract is usually between someone who provide a service to a hirer for money. You are promising
to do a job for the hirer and the hirer is promising to pay you for it. (government) There is different
type of contracts with two major groups: fixed–price and cost–plus contract. When you can forecast
how much a service or a good are going to cost you, you would ... Show more content on
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(Fixed Price with Economic Price Adjustment Contract, 2016) – Fixed price incentive with
successive targets: it is an incentive contract that operates in the same way as an FPIF contract
except that one or more revisions in the target cost and target profit may be made during
performance. (Fixed Price Incentive (Successive Targets) FPI(S), n.d.) – Fixed price for services,
material, and labor at cost: "Direct materials" means those materials that enter directly into the end
product, or that are used or consumed directly in connection with the furnishing of the end product
or service. (Types of Government Contracts, 2012) However, whether it is difficult or impossible to
evaluate the cost of a service or item, contractors will usually agree to a cost–reimbursement
contract, in which the stakeholders assume some level of risk for the final costs. (government) –
Cost–plus percentage fee (CPPF): under cost–plus–fee contract, a contractor is paid for all allowable
incurred costs plus a fee. The fee can be a fixed amount or a percentage of the costs invoiced. (Kurt
Rossetti, 2008) This contract is less risky for a contractor. – Cost–plus fixed fee (CPFF): that
contract provides a payment of approved costs plus a fixed fee. (Types of Government Contracts,
2012). – Cost–plus

Summary Of Joe Valentine And Travis Vanderwhite With Lithko
Joe Valentine and Travis Vanderwhite with Lithko presented on the topic of vertical concrete
construction. They explained to us that vertical concrete construction is a wide range of different
versions of placing concrete. Lithko is a concrete contactor that is aiming to be in every major city
in the United States. They currently have ____ number of offices with the closest being in Kansas
City. Joe and Travis explained to us that Lithko doesn't own any of their own forms. They rent every
form they use whether it is gang forms or steel ply systems. According to what we were told it is
just about the same cost for them to rent all the forms and also they said they are guaranteed quality
equipment for every job. Lithko uses three major forming systems and these systems are gang
forms, steel ply, and ply wood forms. ... Show more content on Helpwriting.net ...
These forms can withstand up to 2000 lbs/sf of pouring pressure and have the fastest pour rate.
Gang forms only require tie about every 4 to 5 feet on center. This system does require a sizeable
lay down area to construct the gang form. Once a certain gang is created it is lifted into place and
usually there is more gangs attached to another. Once the wall is poured and set the form can be
striped and if the gang section is not to odd of a section it can be placed exactly where the next pour
will be located. This helps to speed up the process setting walls and almost takes no time at all to set
up for a pour. Gang forms come in heavy duty and medium duty according to

Construction Management
CONSTRUCTION MANAGEMENT
Chapter 4
Construction contracts. Author: Paweł Kotas, Polska
Construction as a service activity having many dimensions. Starting from ideas, thru find funds,
investor, design construction, find contractor, phase of construction, meet the requirements which
investment needs to be in use and complete facility.
All these aspects are associated with large amounts of documents, permits.
In this essay will be described various types of contracts between the investor and the contractor.
Contract is an agreement between two or more parties to do something for a consideration
establishes the basis for a contract. Because of business aspects of contracts problems can be solved
in the court.
Then the most ... Show more content on Helpwriting.net ...
Depending on the confidence of the contractor on its own estimates and its propensity on risk, a
contractor can slightly raise the unit prices on the underestimated tasks while lowering the unit
prices on other tasks. If the contractor is correct in its assessment, it can increase its profit
substantially since the payment is made on the actual quantities of tasks; and if the reverse is true, it
can lose on this basis.
Negotiated contracts
An owner can enter into contract with a constructor by negotiating the price and method of
reimbursement. This type can during the contract enter into fixed–price or unit –price contract. *
Cost Plus Fixed Percentage Contract
For certain types of construction involving new technology or extremely pressing needs, the owner
is sometimes forced to assume all risks of cost overruns. The contractor will receive the actual direct
job cost plus a fixed percentage, and have little incentive to reduce job cost. Furthermore, if there
are pressing needs to complete the project, overtime payments to workers are common and will
further increase the job cost. * Cost Plus Fixed Fee/ Variable Percentage Contract
Under this type of contract, the contractor will receive the actual direct job cost plus a fixed fee, and
will have some incentive to complete the job quickly since its fee is fixed regardless

Outsourcing Service From A Supplier
Outsourcing is simply obtaining a product or a service from a supplier. Outsourcing services can
supplement an existing internal source, replace an existing internal source, or consist of a new
product or service a company has never provided before.
In the past, it was commonplace for companies to try to do it all. Manufacturing companies would
design, engineer, and build the end product while providing Information Technology support...
regardless of the complexity of the end product and its components. As time went on, it became
obvious that a company cannot do it all. It became more and more routine for organizations to
outsource complex portions of their work.
Smaller companies found it useful to outsource their payroll processing. This soon grew into the
recognition that if it is better to outsource payroll, why not consider outsourcing the entire HR
function? Industries began to grow to support "vertical" business services such as HR and
accounting. The companies that are chosen to provide the service also accept a part of the risk.
In today's world, the most effective method of doing business is for a company to focus on their
core competencies – what they do best. The role of outsourcing is critical to a project's success. It
can expand the customer base and allow organizations to focus more on relationships. As
outsourcing grows, it becomes more and more important to balance advantages and disadvantages,
understand the risks, and act to mitigate those risks.
A

Procurement Contract Assessment Paper
Procurement Contract Assessment Dayne Dickson, Scott Giles, Ronald Fletcher, & Dale Bierman
Bellevue University Procurement Contract Assessment It is essential that project managers have a
thorough understanding of procurement concepts, and the contracts that are involved in the practice.
This assignment will focus on the types (Fixed Price, Cost Reimbursable, and Time and Material),
and subtypes of procurement contracts, and discuss the pros, cons, and the burden of risk of each. At
the end of the assessment, (FFP). This a clear understanding of which type of contract is least
advantageous choice for the ACME breakroom construction project. Further, the paper will
highlight this type of contract is a bad choice, and discuss ... Show more content on Helpwriting.net
...
This type of contract is a hybrid of the Fixed Price and Cost Reimbursable contract, in that, the
buyer and seller agree on a unit rate such as labor cost. This type of contract will not be considered
as an option because it is generally used for staff augmentation, and is not ideal for ACME's
construction project needs. The Choice When considering the worse contract type, the team was
cognizant of the previous contract failures ACME had gone through in the past. As a company,
ACME lacks expertise in demolition or construction, which makes the organization susceptible to
risk when choosing certain contract styles. Because of these skillset limitations, (FFP). This inherent
risk that are both known and unknown when entering into the contract negation phase. To minimize
the risk of unforeseen cost, the ACME team has viewed the Cost Plus Percentage of Cost (CPPC) as
the riskiest contract type to

Hybrid Contracts for Small Business
Hybrid Contracts for Small Business
Introduction
There are many different forms of contracts in which the CEO of a small local business could use to
try to acquire business from the local Navy base. Most traditional contracts are composed of either
fixed price contracts or cost reimbursement type contractual arrangements. However, a new type of
contract has emerged that offers small businesses alternatives to the traditional bidding structures.
The new alternatives to traditional contracts offer small business a great deal more flexibility in their
design. This acts as an incentive for small businesses to bid on various contracts that they might
have been uncomfortable with in previous models. The hybrid contract provides a pathway to new
opportunities for small business. This paper will briefly outline some of the types of contracts
available and discus how they might apply to a small business.
Types of Contracts
The fixed price contract can be used as an effective, efficient, and accountable contract too. Fixed
pricing is typically used when the product or service is being transferred that is relatively easy to
determine a fair market value. For example, a fixed price contract might be used to purchase office
equipment because the price is not generally subject to a large and subjective interpretation. It also
is efficient because it cuts out some of the administrative burden that is placed on the relevant
parties (U.S. Government, N.d.). In more complex fixed price

Federal Contracting
Federal Contracting Activities and Contract Types
Sandra Greene
BUS 315
Dr. Lena Maslennikova
10 December, 2012
Federal Contracting Activities and Contract Types
This paper will discuss Booz Allen Hamilton. It will briefly discuss its history and then go into who
they are today. Finally, it will cover a major contract that they have recently acquired along with a
few particulars of that contract.
Edwin G. Booz started his first engineering company after a stint in the navy in 1914. After many
changes the firm officially became a management consulting firm called Booz Allen Hamilton in
1942. Today it is one of the most prestigious technology consulting firms in the world ... Show more
content on Helpwriting.net ...
Provide staff and users with assistance solving computer related problems, such as malfunctions and
program problems. Test, maintain, and monitor computer programs and systems, including
coordinating the installation of computer programs and systems. Consult with management to
ensure agreement on system principles. Expand or modify system to serve new purposes or improve
work flow (Business Dictionary, 2012).
A lot of the work will consist of analyzing, testing, and modifying. This is why a CPAF contract was
used instead of a fixed–cost contract because it is difficult to predict actual costs. A company would
put themselves in a bad situation to have a fixed–cost contract if the costs where more than the
contracted amount (Murphy, 2009, pp. 24–7). As with any project, there will always be costs or
expenses associated. The type of expenses will always depend on the type of work or project. Some
expenses that will be associated with this contract are direct and indirect costs. Direct costs are costs
that can be totally identified with or traced back to a particular product or service. Those costs are
materials, labor, or expenses related to producing the product or service. Indirect costs are not easily
traced back to a particular product or service, or can be involved with other products or services in

the same time period. Booz Allen provides services so they will never have material costs associated
with any project

Types Of Contract Method For Construction Management
2.3 Contracts There are several types of contract method and these methods generally fall under
three categories: Fix price (FP) or lump sum (LS), guaranteed maximum price (GMP) and
reimbursable contracts. These methods can be applied to any contracting for construction
management. Lump sum contact, also called fixed price is when an owner engages an entity to
perform a fixed scope of work for an agreed lump sum payment (Cmaa, 2012). Guaranteed
Maximum Price (GMP) is a contractual arrangement between an owner and an entity to perform a
fixed scope of work for a price that is guaranteed to not exceed the stated maximum price. GMP
typically includes a base cost along with several allowances and contingencies and may result in
final cost lower than stated GMP. These savings may fall to the owner or may be shared among the
owner and the engaged entity (Cmaa, 2012). Reimbursable contracts come in a variety of forms and
sometimes it is coupled with a not to exceed maximum price. Reimbursable contract is an
arrangement between an owner and an entity to perform a fixed or variable scope of work based on
agreed calculated method. Reimbursable contract includes unit price, cost plus fixed fee, cost plus
incentive fee, time spent and time and materials (Cmaa, 2012). Reimbursable Terms (Cmaa, 2012)
(Antoniou, Aretoulis, Konstantinidis, & Kalfakakou, 2013) Unit price payment is an actual quantity
at set unit prices. Cost plus fixed fees payment is based on actual cost plus a fixed

Interview Report : An Accountant Working For Deloitte Company
Yuqing Lei
Prof. Lynda Thoman
MGMT 201
November 5, 2016
Interview report
Today, I interviewed Mr. Adam, an accountant working for Deloitte Company. He is one of my
father's friends. He had been employed for Deloitte Company for many years. So I believe he is the
expertise to be interviewed.
First of all, his company mainly provides professional services including accounting, tax, audit,
advisory and consulting. He works with the security of information systems by advising companies
how to ensure their systems stay safe and the right people have access. When it comes to the
question how does he use accounting information in his job, Mr. Adam says that "In order to bill our
clients, we have to keep close track of many different metrics that directly affect our revenue.
Additionally, we provide audit support after an audit has taken place to implement controls to make
sure companies are compliant with the audit and governmental or industry regulations."
Second, I ask him some questions about activity–based costing (ABC). To begin with, I am curious
about how does his company cost its products/services, how is overhead assigned and whether or
not his company uses activity–based costing (ABC). He says they use a variety of costing methods.
Generally, direct costing is used when charging projects; however, they also provide some managed
services on a reoccurring revenue charge. They allocate overhead depending on the cost center (i.e.
Advisory vs. Audit vs. Consulting) and the

Ias 11
IAS 11 International Accounting Standard 11 Construction Contracts In April 2001 the International
Accounting Standards Board (IASB) adopted IAS 11 Construction Contracts, which had originally
been issued by the International Accounting Standards Committee in December 1993. IAS 11
Construction Contracts replaced parts of IAS 11 Accounting for Construction Contracts (issued in
March 1979). Other IFRSs have made minor consequential amendments to IAS 11. They include
IAS 23 Borrowing Costs (as revised in March 2007) and IAS 1 Presentation of Financial Statements
(as revised in September 2007). © IFRS Foundation A613 IAS 11 CONTENTS from paragraph
INTERNATIONAL ACCOUNTING STANDARD 11 CONSTRUCTION CONTRACTS
OBJECTIVE ... Show more content on Helpwriting.net ...
1 IASC's Framework for the Preparation and Presentation of Financial Statements was adopted by
the IASB in 2001. In September 2010 the IASB replaced the Framework with the Conceptual
Framework for Financial Reporting. A616 © IFRS Foundation IAS 11 5 For the purposes of this
Standard, construction contracts include: (a) contracts for the rendering of services which are
directly related to the construction of the asset, for example, those for the services of project
managers and architects; and contracts for the destruction or restoration of assets, and the restoration
of the environment following the demolition of assets. (b) 6 Construction contracts are formulated
in a number of ways which, for the purposes of this Standard, are classified as fixed price contracts
and cost plus contracts. Some construction contracts may contain characteristics of both a fixed
price contract and a cost plus contract, for example in the case of a cost plus contract with an agreed
maximum price. In such circumstances, a contractor needs to consider all the conditions in
paragraphs 23 and 24 in order to determine when to recognise contract revenue and expenses.
Combining and segmenting construction contracts 7 The requirements of this Standard are usually
applied separately to each construction

Disadvantages Of Cost Reinbursement Contract
INTRODUCTION: In a cost–reinbursement contract, the contractor was paid by the employer
limited to the source and a small amount in addition for the contractor to gain profit. Furthermore,
cost reimbursement contracts has massive divergent with a fixed–price contract, that the contractor
get is paid with the discussed expenses. Moreover, there are several contract type that federal
agencies can choose. Firstly, is fixed–price, secondly is time–and–materials, and lastly is cost–
reimbursement. Each contract has its own specialty and risk to the employer. Different types of
contract can be used to surge the motivational level of the contractor and to surge the ultimate result
of the project that are in progress by the contractor. Besides, the contracts are suitable when
inconstancy about the contract production do not permit price to be estimated with enough precision
to use any type of fixed–price contract. ... Show more content on Helpwriting.net ...
therefore, the administration conducts relatively massive supervision on this type of contract to
make sure that effective ways and efficient price management are used. There are two big reasons
for the disability to estimate the price precisely. Firstly, is the lack of understanding regarding the
contract demand. Then, is the not enough experience in work performing, such as the evolution of
an armor structure where production ability and detailing are sufficiently unstable to warrant
contracting on a fixed–price basis. When these order occur, the use of a cost–reimbursement
contract may be suitable. Conversely, when variability have been declined to a commandable phase,
a fixed–price contract normally is used. Last but not least, there are three basic category of cost–
reimbursement contracts. Firstly is the price addition fixed fee, price addition award fee, and price
addition incentive

Proj410 Bpo Cloud Computing Case Study Essay
BPO and Cloud Computing Case Study 1
PROJ 410 Contracts and Procurement
Purpose
Smith's Information Services is in the process of implementing a corporate overhead reduction
program. This is due in part to the increasing costs of operating and maintaining an in–house data
center, as well as flattened sales and reduced profits. For these reasons Smith's Information Services
is looking to outsource the company's data center to an outside vendor. The increasing overhead
costs include personnel costs to operate and maintain the data center's servers, data center cooling
costs, and electrical utility costs required to run the data center. Reducing these overhead costs, by
outsourcing the data center, will help Smith's Information ... Show more content on Helpwriting.net
...
There should be no compromise to the company's business practices or access to the company's
data. Besides personnel costs and utility overhead costs, Smith's Information Services would be able
to reduce the company's infrastructure which will also help to maximize profits.
Vendor Considerations
Since Smith's Information Services Company is in the business of processing and analyzing
consumer data, the minimum number of vendors to solicit for outsourcing the data center would be
three, with a maximum of ten. This would provide not only a fair solicitation process, but also
would ensure the company receives the best value for the services provided by the selected vendor.
While the goal of the outsourcing is to reduce the company's soaring overhead costs, simply
selecting any cloud computing company based on cost alone would be foolish. Ensuring there are
multiple vendors solicited for this service would ensure the company's costs are reduced while still
maximizing profits. Given that personnel costs account for the majority of a company's overhead
costs, followed closely by utilities costs, any vendor solicited should cost less than Smith's
Information Services is currently spending on its employees and utilities. Limiting the number of
vendors solicited to ten or less would also ensure a quick evaluation period without the chance of
getting mired in minute details between the

Atlantic Computer Is A Leading Developer Company Of High...
Introduction
Atlantic Computer is a leading developer company of High Tech Servers; it has recently started
manufacturing Basic servers and now company is looking to decide the pricing of the servers based
on the four models given in the case i.e status–Quo pricing, competition based pricing, cost–plus
pricing and then there is value–in pricing.
Situation analysis
For this situation, Atlantic Computer is a producer of servers and technology products.
Two business sections exist in the server business: High Performance Servers and Basic Servers.
Atlantic Computers has held a 20% offer of the High Performance market with their Radia servers
being their head item. Then again, the business sector for Basic servers is developing and this has
brought about Atlantic Computers to create and present a Basic Server called the Tronn and
software called the "Performance Enhancing Server Accelerator" (PESA). The Tronn was created
basically for the developing US business market open door for basic servers. The PESA would
permit the Tronn to perform up to four times quicker than its standard speed and make regularly
asked for data more available. Along these lines, packaging the Tronn and PESA appeared well and
good. Atlantic is not worried that the Tronn will be viewed as a substitute for its High Performance
servers. They are looking to decide a price of the servers to introduce in the market before the trade
show.
SWOT analysis
Strengths
Speed of new server is 4 times

Cost Plus History
Cost Plus World Market History
The first Cost Plus opened in 1958, when a San Francisco businessman parlayed his passion for
travel into an import business by selling a shipload of hand–woven wicker from a local pier. The
furniture sold out within a few days, but the idea lived on. Now Cost Plus World Market's store at
Fisherman's Wharf in San Francisco is a favorite destination for tourists and locals alike. (Cost Plus
World Market)
With such a receptive audience eagerly awaiting his return, it only made sense to open a store. And
in 1958 he opened the first store in San Francisco's famed Fisherman's Wharf and called it Cost Plus
World Market. The store quickly became a destination for those who craved original and handmade
items from ... Show more content on Helpwriting.net ...
The wines that they sell include wine, micro brewed and imported beers, coffee, tea and bottled
water. The wine assortment is moderately priced premium wines that are not readily available at a
neighborhood wine or grocery store. The staffs are trained and can help with the different wines as
to what the consumer is looking for with the budget they are working with. The company routinely
shops a variety of retailers to ensure that its products are competitively priced. (Cost Plus World
Market)
Company strength for the company is that they are online, and since many people are connected to
the internet they can reach many more consumers. Outside of the shopping the company has
available on the website its Annual Report, Quarterly Reports, and Currents reports. The website
gives information for the investors, merchandisers, etc. Cost Plus World Market offers different
coupons for sales and percent off on the internet as well. Since they shop the other competition
retailers to make sure they have a competitive price you can feel comfortable that you will get the
best price out there for unique items.
Cost Plus World Market Organizational Weaknesses
Cost Plus World Market has significant debt and may incur from this substantial debt added to it in
the future. A good portion of the future cash flow for the companies operating activities will likely
be dedicated to the payment of interest and the repayment of principal on the indebtedness.

The Concept Of Cardinal Change
Legal Research Assignment
My legal research paper is on the concept of Cardinal change. Cardinal change is one of three legal
classifications of change. A change is define as followed; "Any alteration to a contract permitted by
the Changes clause of a contract." (Nash, Scooner, & O 'Brien, 2007). "Most construction contracts
contain a clause governing changes that allows the owner to change or modify the work required
under the contract documents." (Loulakis & Santiago, 2001). When clause mentioned above is
included in the contractor it means the contractor is typically required to perform the change. Now a
cardinal change is considered a major change to the contract. A Cardinal change is define as
followed; "A change that is beyond the ... Show more content on Helpwriting.net ...
Air–a–plane Corporation v. the United States, 408 F.2d 1030 (Ct. Cl. 1969), is the first case I'm
going discuss in which cardinal change was used for the basis of a law suit. Air–A–Plane
Corporation sign a contract with the Army Chemical Corps to make over 1100 smoke generators
which were designated to be M3A1. The total fixed–price contract price was $607,101.04. The
major issue that occur with the agreement was the large number of changes made by the
Government after the contract was awarded. Yes, the contain the clause governing changes that
allowed Army Chemical Corps to change or modify the work required but Air–A–Plane Corporation
did not expect such a large number of changes. "This belief was based principally on the fact that
the contract, by way of detailed and comprehensive specifications and drawings, described the
contract items minutely. This belief was apparently also based in part upon the fact that the contract
was a fixed price contract." (Justia, 1969). For the first issue the board found that a large number of
changes were made after the contract was awarded. Whether they look at the number Air–A–Plane
Corporation submitted or the one Army Chemical Corps submitted, the number was still large. "The
first change

Why Manufacture Or Outsource? Essay
Why Manufacture or Outsource The make–or–buy analysis is the decision to choose between
manufacturing a product in–house or by purchasing it from an external supplier (PMBOK, 2013).
This is also referred to as outsourcing and is a decision that must be made based on several factors.
Per the Project Management Body of Knowledge, expenses for manufacturing must include
additional costs, such as labor to manufacture the items and disposal costs of existing equipment.
Conversely, the decision to outsource a product or service, must include additional shipping costs,
import fees and taxes, not to mention the cost of storing and inventory management. Furthermore,
there are also other decision–making factors, such as the need for control over quality, proprietary
technology, time constraints, and lack of expertise or limited capabilities (PMBOK, 2013). Pros &
Cons of Manufacturing versus Outsourcing To further enhance on the topic, make or buy decisions
can be advantageous to the organization due to ability to choose more than one option as it will
ultimately effect several aspects. Some of the advantages for choosing the making route are increase
control over production and quality, control of lead time, and control of technological information.
However, there are disadvantages to it as well, for instance, the limited capabilities to manufacture
or time constraints that will not be cost effective for research and development of a specialized
product. The case is similar for buying

Global Paper
Bayani Brew
(Iced Tea)
(Exported to Australia)
Submitted by:
Kimverly A Leonardo.
Submitted to:
Professor Bibiana Dela Cruz
Table of Contents
Page
Global Marketing Plan
BAYANI BREW Iced Tea
Introduction .................................................................................... 3
Situational Analysis ........................................................................ 5
Marketing Plan Marketing Objectives ..................................................................... 6 Target Market
.............................................................................. 7
Marketing Mix Product Description ........................................................................ 7 Pricing
.......................................................................................... 8 Promotion
.................................................................................... 9 Distribution
................................................................................. 10 Packaging
................................................................................. 10
Mode of Transport ................................................................................. 11 ... Show more content on
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The next Bayani Brew drink may yet be another native, healthy, and surely yummy concoction of
the nanays we fondly call our Titas. There is just so much natural goodness of our people and our
land left untapped!
Hence, the name Bayani Brew does not just stand for our love of country or "bayan," but also for
honouring these unsung heroines (our personal "bayanis" who not just concocted these delightful
drinks); and more sentimentally, for the "bayanihan" effort of local talent, farmers, and social

entrepreneurs to bring this once crazy idea to the market. Bayani Brew wants to be remembered not
only for its refreshing beverages, but as part of brewing a social innovation movement comprising a
new breed of Pinoys who are not just learning to love living a healthy and natural lifestyle, but more
importantly, who are bat–sh*t crazy in love with our country.
II. Situational Analysis
Major environmental issues in Australia include whaling, logging of old growth forest, irrigation
and its impact on the Murray River, Darling River and Macquarie Marshes, acid sulfate soils, soil
salinity, land clearing, soil erosion, uranium mining and nuclear waste, creation of marine reserves,
air quality in major cities and around polluting industries and infrastructure,

Advantages And Disadvantages Of Fixed Cost Contracts
The Fixed–Price Contracts is a type of the contract regularly used by the Federal Government for
the procurement of various supplies. This type of contract provides prices for a firm, which is often
adjustable depending on the issues specified under the contract. According to Engelbeck (2002) the
Fixed Price Contract provides for various acquisitions as described below:
a) Price determination: In this case, the prospective firm provides a fixed price at the initial stage for
determination or adjustment, either upward or downward. The price is also set at a certain ceiling
for determination at the end of the contract period.
b) Materials reimbursement. This is a fixed contract used for the purchase and repairs of services
and is pegged with ... Show more content on Helpwriting.net ...
How can Warranty and Contract Management benefit the Government Customer?
The management of warranty and contracts is a key aspect of procurement both for the government
and the contractors. While there are numerous advantages of maintaining an effective contract
system, some of the key benefits include; tracking, contract vendors and their contact details, and
knowing the assets covered under the contracts. It also assists in maintaining the profiles of all the
client contracts under a single space.
The primary benefit of warranty and contract management is the reduction of administrative
overhead costs. Hoskisson & Hitt (2008) explain that, with a centralized log of assets and contracts,
the misuse of resources is heavily minimized, thus giving the management an opportunity to
allocate resources where they are needed. Further, this translates into immediate savings of costs for
the government customer owing to the decommissioning of outdated machines off the contracts and

Debra Underwood Inc. Case
The Debra Underwood Inc. (DUI) is a small company which specializing in small coating products
for ceramic tile and marble floors. DUI intends to supply coasting products and service outline in
the Request for Proposal (RFP) #123456789, at a fair price and prompt convenient services, DUI
Inc. has the required product and expertise for the Navy contract. The company is ready to consider
the factors needed for the proposal based on the RFP above. The local competitor has also received
this RFP for similar products and services; they also intend to submit a proposal, which makes the
winning more competitive. The company will review the competitions past performance and check
some references. The best contractor or company who submits the best proposal and can deliver the
product and services at a profit to their company should be awarded the contract. DUI has an ...
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Another benefit of having a multi–payer contract is the statutory requirement covering 2–5 fiscal
years (10 USC 2306b). Some of the advantage of using the multi–year contract for the company
includes higher profit potential, little control by the government, less financial audit and defined
specification. There are some disadvantages including risk assumption relates to financial and
technical assumptions. The government would have the advantages of risk shifts to contractor,
simplifies budget process, no responsibility of management and defined work specification. One of
the disadvantage for the government is the prices always contain some contingencies. DUI would
use this fixed price proposal because it would mean the contract expands more than one year and
funded with annual appropriation that would be a profit and growth for the

Why Managers Involves Pricing Their Products And Services
One of the most challenging and essential task of Managers involves pricing their products and
services. Pricing mistakes can diminish and or destroy an otherwise promising business. High prices
can drive customers away and hurt an organization. Simultaneously, prices that are too low can
indeed, robs the ability to earn a profits giving the impression that the products are inferior.
Determining an appropriate pricing structure is the key to the success and long term benefit for the
business/organization. The powerful forces for Pricing are Image, Competition and Value. Factors
that help in pricing are :– Recognizing the demand and supply, communicate with customers,
Include a surcharge, rather than increase a price, may help to ... Show more content on
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The costs of the product are converted to per–unit, then a predetermined percentage is added to
provide a profit margin making it the Cost–Plus Pricing. The cost–plus approach relies on arbitrary
costs and arbitrary markups. Many companies use this strategy to maximize their return rates.
According to Federal News Radio, the U.S. government agencies spent $135 billion in 2008 on
cost–plus type contracts states Lisa Magloff, Demand Media.
Cost–plus pricing commonly is used in processing credit card transactions. This involves three
banks. A pricing system called interchange plus adds a merchant service provider 's fee to the rate
charged by the credit card provider for each transaction. The merchant banks regulates the
transaction of the goods sold to that of the appropriate payment there of. This price model is good
for merchants because it tells them exactly how much each credit card transaction will cost them to
process.
2–Potential problems are: This method ignores the concept of price elasticity of demand. Less
incentive to cut or control costs, needs an estimate and apportionment of business overheads. If
applied strictly, a full cost plus pricing method may leave a business in a vicious circle. When
setting price, marketers must take into consideration several factors which are the result of company
decisions and actions. To a large extent these factors are controlled by the company and, if
necessary, can be altered. However, while the

PROJ 410 Midterm Exam 1
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1. (TCO 2) An offshoot of business process outsourcing which requires a greater skill or knowledge
of the industry or inner workings of a firm is:
2. (TCO 3) How are the procurement responsibilities divided between the project manager and
contract administrator?
3. (TCO 4) What is the difference between the Cost–Plus–Percentage–Fee (CPF) contract structure
and the Cost–Plus–Fixed–Fee (CPFF) contract structure?
4. (TCO 5) To assess the impact of a contract on both the buyer and seller, an analysis of exposure
can be completed. Categories analyzed in this exposure analysis include all of the following except:
5. (TCO 6) Factors that may affect the BPO agreement structure include all of the ... Show more
content on Helpwriting.net ...
Who would be important to involve and why?
1. (TCO 2) A firm should concentrate on its _____ processes while outsourcing its _____ processes.
2. (TCO 3) What activities is the contract administrator responsible for in a contract situation? What
about the project manager?
3. (TCO 4) What is the difference between the Cost–Plus–Fixed Fee (CPFF) and the Cost–Plus–
Incentive Fee (CPIF) contract structures?
4. (TCO 5) To assess the impact of a contract on both the buyer and seller, an analysis of exposure
can be completed. Categories analyzed in this exposure analysis include all of the following except:
______.
5. (TCO 6) The Term, Contracting Party, Integration, Retained Assets, and Performance Standards
are all: _______.
6. (TCO 6) List three commonly used evaluation criteria listed in an RFP and explain why a buyer
would want this information before selecting a seller.
7. (TCO 8) What is an independent estimate and why should a buyer produce an independent
estimate before selecting a seller?
8. (TCO 7) For most customers, requesting multiple bids is the preferred approach because it:
_______.
9. (TCO 7) Describe the common sections of the RFP.
10. (TCO 2) Part 1: List and define the six phases of the project procurement management process.

Part 2: How could you organize a simple project such as renovating a bathroom into the six steps in
the project

Questions On Common Types Of Contracts
Contract Types There are multiple factors that influence the type(s) of contract(s) utilized/selected
within a project. Some of these factors include: the level of uncertainty related to the scope of work,
the amount of project risk willing to be assumed, importance of meeting schedule milestone dates,
and the need for projected costs, among others (Darnall & Preston, 2013). Whatever the driving
factors are in the selection process, once established, the type of contract selected can have a
significant influence on the decision making process related to the trade–off of the triple constraints
of cost, time, and performance (Kerzner, 2013). This paper will briefly explain five common types
of contracts focusing primarily on how each type can affect project constraint trade–off.
Common Types of Contracts There are two general types of contracts: fixed price and cost
reimbursable, with each main type having several variations (Darnall & Preston, 2013). The two
most common variations of fixed price contracts are, firm–fixed–price and fixed–price–incentive–
fee (Kerzner, 2103). For cost reimbursable contracts, the three most common variations are, the
cost–plus–incentive–fee, the cost–plus–award–fee, and the cost–plus–fixed–fee (Kerzner, 2013).
Each type and variation influences project trade–off decisions relative to the triple constraints of
cost, time, and performance differently (Kerzner, 2013).
Firm–Fixed–Price (FFP) In a FFP contract, all costs are incorporated

Pricing Schemes Of The Price Of Consumer Surplus Essay
Uniform pricing does not generate the maximum possible total revenue because it generates
consumer surplus (Thomas & Maurice, 2013). Consumer surplus is the area under demand and
above market price over the range of output sold in the market (Thomas & Maurice, 2013).
Managers devise pricing schemes to capture consumer surplus and turn it into profit (Thomas &
Maurice, 2013). A firm charges different prices for the same product to increase profits which is
called price discrimination (Thomas & Maurice, 2013). There are different groups of buyers with
various elasticities of demand and are therefore willing to pay different prices. The definition of
price discrimination requires the exact same product be sold at different prices and the cost must be
the same for each market (Thomas & Maurice, 2013). Under first–degree price discrimination,
every unit is sold for the maximum price each consumer is willing to pay, which theoretically allows
the firm to capture the full amount of consumer surplus. However, this requires a tremendous
amount of knowledge and information about each consumer and their willingness to pay for a
product (Thomas & Maurice, 2013). This can generate more profit than uniform pricing because of
the 'haggle factor'. Sellers who negotiate prices for each individual customer are practicing first–
degree price discrimination. If the seller knows their customer has more financial resources, they
will try to get a higher price. Second–degree price discrimination

Procurement Planning
Procurement Planning CPMGT302
Kerzner (2009) defines procurement and contracting as the "process that involves two parties with
different objectives who interact on a given market segment." (p. 840) As with every phase of
project management, proper planning is key to the success of any project by ensuring the project
gets the most out of any supplier relationships. This paper will define the project procurement
planning process and how risk management affects that process. Procurement Planning There are
several pieces to the procurement planning process that include documenting the procurement
requirements, identifying ... Show more content on Helpwriting.net ...
In CPIF contracts the seller is reimbursed for all allowable expenses and receives a fee based upon
achievement of performance objectives. In CPAF contracts the seller is reimbursed for legitimate
costs, but most of the fee is base upon the subjective satisfaction of the buyer. Time and material
contracts are a hybrid as they contain aspects of both fixed–price and cost–reimbursable contracts.
This contract type is used when it is impossible to estimate accurately the extent or duration of the
contracted work. Time and material contract represents the highest risk to the buyer. Outputs
Outputs of the procurement planning process include the procurement management plan,
procurement statements of work, make–or–buy decisions, procurement documents, source selection
criteria, and change requests to the project management plan. Procurement statements of work
(SOW) are the most valuable output of the plan procurement process. These documents directly
correlate to the project scope baseline and specify the portion of the project scope to be included in
any related contract. The SOW allows perspective sellers to determine if they are capable of
provided for the needs of the contract before they bid, thus eliminating time and effort wasted for
both the buyer and seller. This ultimately leads to the greatest efficiency in identifying the right
source for the

Project Scoop Analysis
The team started with collecting information on the requirements needed to build a school according
to management specifications. The NEGL demands a location for the project, that should consist of
the two class rooms per grad, supplementary classrooms, drawing and craft studies, computer labs,
multipurpose rooms, a main hall, a restaurant, an administration section, an indoor playground, an
outdoor play area, and car parking lot.
PROJECT SECOPE: To begin with project scoop, it is a documentation of a project to which
assigns work to the employees and staff, and that they are not allowed to be doing and other part of
work which they are not assigned too, as stated from our company ACC
PROJECT DELIVERY METHOD: Project delivery ... Show more content on Helpwriting.net ...
I chose the cost–plus–fee because it has a specific time is 11 months. The schedule should finalize to
be apple to complete the project, no matter the cost, but the time. These are the two reasons I chose
the cost–plus–fee because it has specific time which is 11 months, to be able to finalize the
schedule, and complete the project, no matter the cost, but the time.
W B S
The WBS explains how to reward the work of the team, and how the teams works finishes the
project before time.in this chart, the steps of the project will be explain from the beginning of the
project until the ending.
DRAFT SCHEDULE:
In this graph, the time and plan will be explained. The timing will be monthly and want will be
worked on step by step.
CONCLUSION:
So we have many types to finish build the school, but we should get a strategy like to do plane to
walk on it. If anyone want to build something, sure we need a plane to make it essay for us. For
example, DESIGN–BUILD and in this case we used this topic, because we don't matter about the
cost, but we need the time and I used COST–PLUS–FEE contracts. That is why you ned to start
plan before to start work to see everything essay and show all things and when have any something
wrong can

Essay on Supply Chain Partners: Virginia Mason and Owens &
Synopsis:
Michael Stefanic, director of cost management at Owens & Minor (O&M), a medical and surgical
supplies distributor and Daniel Borunda, material systems manager at Virginia Mason (VM)
Medical Center came together to try to battle healthcare costs and improve the healthcare supply
chain. Virginia Mason, a private non–profit healthcare organization based out of Seattle, offered
both primary and specialized care and developed the Virginia Mason Production System (VMPS).
The VMPS was a modified version of the Toyota Production System that helped VM work towards
its goal of being a quality leader, emphasized line–level employee teamwork, and fought for a zero
defect rate. The components of VMPS included value–stream mapping ... Show more content on
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After the TSCC model was created, VM realized that they and O&M shared in creating the defects
and decided to split the cost of rework and appropriate 50% of it to themselves in the TSCC.This
deflected any adversarial relationship and helped them both improve the process. The mindset of
VM in splitting rework costs 50/50 with O&M also encouraged them to share equally in any real
savings from the program. The "gain share contract" incentivized VM to reduce its costs and
ensured O&M would implement efficient processes and keep costs low.
The TSCC model also encouraged O&M to want to get other hospitals in Seattle to use it. Stefanic
believed that hospitals standardizing their orders would decrease O&M's on–hand inventory SKUs,
thus creating cost saving opportunities for the hospitals. However, O&M's move towards fewer
SKUs has proven a daunting task in the healthcare industry.
Effects of VM's lean philosophy:
VMs lean philosophy affected the partnership in many ways. O&M

PROJ410 Mid-Term Essay
These are the automatically computed results of your exam. Grades for essay questions, and
comments from your instructor, are in the "Details" section below. Date Taken: 9/28/2014 Time
Spent: 2 h , 07 min , 34 secs Points Received: 200 / 200 (100%) Question Type: # Of Questions: #
Correct: Multiple Choice 4 4 Short 5 N/A Essay 4 N/A Grade Details – All Questions Page: 1 2
Question 1. Question : (TCO 2) The term BPO refers to: _______. Student Answer: creating a new
operation within an existing company moving bits and pieces of a business unit to another area
within an organization shutting down a business unit and finding ways to "do more with less"
outsourcing one or more specific business processes, ... Show more content on Helpwriting.net ...
What are some of the other evaluation criteria that a buyer may use to help select a seller? Student
Answer: Some of the evaluation criteria the buyer can use includes: Understanding scope of work
Overall cost or financial proposal Management approach Reputation Production capacity Business
size and type Flexibility Experience Value–added services References Timeframe Industry
developments and benchmarks Human resources Instructor Explanation: Understand the scope of
workOverall cost or financial proposalTechnical capabilityManagement
approachReputationProduction capacityBusiness size and typeFlexibilityExperienceValue–added
servicesReferencesTimeframeIndustry developments and benchmarksHuman resources Points
Received: 12 of 12 Comments: Question 8. Question : (TCO 8) What is an independent estimate
and why should a buyer produce an independent estimate before selecting a seller? Student Answer:
The independent estimate is produced by the buyer and is its assumption of the "should–be" costs.
Having an independent estimate allows the buyer to check the supplier's price. A significant
difference between a seller's price and the independent cost estimate points to an indication that
either the seller did not interpret the scope of the work correctly of the buyer did not translate its
expectations correctly. Instructor Explanation: An independent estimate is produced by the buyer
and

What Contracts Work Best For What Type Of A Contract Case...
What contracts work best for what type of projects?
Project Managers, inside the quest for successful project management and to create a cost powerful
quality support of their clients, could procure material and administrations all through venture
execution; or their administrations could likewise be gained by others, each inside or outside the
association, to deliver benefit in their claim to fame zones. For every situation, the objective is
accomplished by an agreement, composed or oral, which is a lawfully restricting device that
characterizes the connection, span, nature and degree of administration, explanation of work,
thought and terms and conditions. The technique by that the material/administrations gained is
acquisition or ... Show more content on Helpwriting.net ...
This is the reason cost reimbursable contracts are once in a while utilized. The cost reimbursable
contracts additionally separated into subcategories like Cost plus Fee (CPF), Cost plus Fixed Fee
(CPFF), Cost plus Incentive Fee (CPIF) and Cost plus Award Fee (CPAF). There is a third hybrid
sort ordinarily being used called Unit Price contract or time and materials contract. Fundamentally,
in unit value get, the vender will profit for consistently he dealt with the task like outsourcing in
settled value gets, the merchant and the purchaser makes concurrence on a settled cost for the
venture. For the most part, the purchaser is in generally safe classification on the grounds that the
cost or cost is as of now settled and the merchant has consented to the terms and conditions.
Essentially in unit value get, the vender will profit for consistently he dealt with the task like
freelancing and outsourcing.
Toward the end, project manager needs to choose what sort of agreement ought to be chosen on the
premise of undertaking he or she is taking care of and furthermore ought to know about the
legitimate parts of the task. The project manager ought to have the capacity to go out on a limb that
includes cost, asset portion and SLAs and ought to be in charge of the non–deviation of the
specified viewpoints above. The manager needs to settle on the merchant choice by confirming the
foundation of the customer as

Atlantic Computer
Atlantic Computer – Business case
Case introduction
Atlantic Computer is a manufacturer of servers and other high–tech products. Following the growth
of the internet there has been an increase of demand for cheaper, Basic Segment Servers. Atlantic
Computer, currently having a 20% market share in the High Performance Server market, has
decided to expand their product range and enter the Basic Segment market. Their response to the
projected 36% compound annual growth in demand for Basic Servers has come in the form of the
"Atlantic Bundle". A Basic Segment server, called "Tronn", with an innovative software tool.
"Performance Enhancing Service Accelerator", or PESA, which would allow the Tronn to perform
up to four times faster than its ... Show more content on Helpwriting.net ...
| Disadvantages: pricing can be swayed by changes in electricity or license prices, decreasing the
strength of the savings sharing. |
In order to calculate the total potential revenue, we use the total potential sales in three years of
21.180, again assuming that all customers are seeking a four basic server package. In order to make
number more realistic, we shall also make use of the 50% attach rate as used in the cost–plus
approach. Note: this is however still a fictional number to illustrate the differences in profit margins.
| Total Revenue | Cost price & investment | Total profit | Status–quo pricing | $ 42.360.000,– | $
34.574.840,– | $ 7.785.160,– | Competition–based pricing | $ 72.012.000,– | $ 34.574.840,– | $
37.437.160,– | Cost–plus pricing | $ 47.551.218,– | $ 34.574.840,– | $ 12.976.378,– | Value–in–use
pricing | $ 67.776.000,– | $ 34.574.840,– | $ 33.201.160,– |
Customer profile DayTraderJournal.com
DayTraderJournal.com is a SME that provides training information and tips to prospective day
traders. Their revenue comes from selling advertising space on their website. Their requirements are
a minimization of acquisition costs, minimization of possession costs and a large capacity for
processing information requests.
First we determine whether PESA would be a significant improvement, making use of the figures in
Exhibit 2. As the web server hosting performance goes up by roughly 409%, and this being

Advanced Project Management
Telestar International (Chapter 7 – Page 312)
1. Who do you believe is at fault in this situation?
I believe that the Project Manager is at fault in this situation. The structures manager strongly
advised the project manager not to stop the activities in this department before testing the plant's
high–pressure pneumatic and electrical systems. The structures manager warned the project
manager and even mentioned that the test was scheduled for the next month. I think it would have
been more important to consider this risk and prevent this from happening, alone from a safety
perspective. The project manager also mentioned that his boss expects him to finish this project
without a cost overrun. However, maybe it would have been of ... Show more content on
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It is typically used when there is a scope of services, but it is not well defined or when there are too
many uncertainties for the seller to use a fixed price contract.
I probably would try to approach the customer with my problems in hopes of relief. Also, it would
only be fair to the customer to be informed, since it's not a fixed–price contract and additional work
would require additional fees to be paid.
4. If you were the customer of this cost–plus program, what would your response be for additional
funds for the bathtub period, assuming cost overrun?
Since this is not a fixed–price contract, it's quite common that cost overruns occur due to the scope
of services not being well defined. I would consider my options and try to make a decision
considering the most effective and efficient way to complete the project. If additional funds and cost
overruns are inevitable, I would try to determine if it would be worth it to crash the project and
reduce costs in another way. It even depends on the kind of cost–plus contract. A CPF contract for
example would actually give the seller an incentive to overspend because the higher the cost the
higher the profit. So I would be more than glad to be involved considering the circumstances.
5. Would your previous answer chang if the program had the money available as a result of an
underrun?
As I mentioned in my previous answer, since the scope is not as well

Contract Specialist: A Case Study
Erica L Shaw Contract Specialist Army Geospatial Center Erica Shaw was selected as a contract
specialist local intern with the U.S. Army Corps of Engineers (USACE) Army Geospatial Center
(AGC) Contracting Office on February 9, 2014. As a contract specialist intern, Erica is responsible
for the acquisition and contract administration for Broad Agency Announcements, Small Business
Set Aside Task Orders and procuring services and supplies. Erica currently serves as the leader on
AGC's small purchase acquisitions efforts. She established a process for awarding small purchases
and assisting customers with understanding Army Computer Hardware Enterprise Software and
Solutions for acquiring services and IT supplies. Erica provides leadership by effectively creating
templates distributed throughout the agency to assist customers and project managers with Goal 1
Waiver requests and documents required for procurement requirement packages. From2011–2013,
Erica served in the U.S. Mission Installation Contracting Command as a Government Purchase Card
(GPC) Alternate/Agency Program Coordinator, Department of the Army, at Fort Leonard Wood,
MO. In this position, in an office with over 200 files, Erica managed 80 of 290 Government
Purchase Card accounts. She provided leadership and guidance to a network of over 60 military and
civilian ... Show more content on Helpwriting.net ...
She assisted the principle advisor to the Procurement Manager on all international contract
procurement packages and delivery requirements. Erica provided leadership by volunteering to
work on international procurements to ensure anomalies were resolved in a timely manner. Within
Erica's first year, she created lasting networks with project managers and contractors, both
domestically and internationally, and was placed on Integrated Product

Construction Contracts Essay
Chapter 4 – Construction Contracts 1. Name and briefly describe each of the two basic types of
competitively bid construction contracts. Which type would be most likely used for building the
piers to support a large suspension bridge. Why? Two basic types of competitively bid construction
contracts are lump–sum and the unit–price contract. The lump–sum contract is when the contractor
agrees to complete all work for a pre–determined price including profit and the contract. The unit–
price contract is when the contractor quotes work on units separately instead of entire project. Price
is based on units of work performed, and cost varies depending on the quantities of units. Building
the piers to support a large suspension bridge will ... Show more content on Helpwriting.net ...
4. Name two types of negotiated contracts and describe the method of payment and incentive
concept. Cost + percent of cost is the method of payment which is related to the cost of the job, the
larger the cost of the job the higher the amount of fee that is to be paid by the owner. There is a little
incentive to be efficient and economical in the construction but is subjected to abuse. Cost + fixed
fee is paid regardless of the variation of the reimbursable cost factor. This method gives contractors
an incentive to get the job done as quickly as possible in order to recover his fee over the shortest
time frame. 5. What is meant by unbalancing bid? What type of contract is implied? Give an
example of how a bid is unbalanced. A bid is unbalanced when some contractors use this method to
profit greatly on a project. Contractors do this by changing unit prices of various bid items to the
point where the price does not reflect the true cost of those items. The unit–price contract is implied
to an unbalancing bid. An example of how a bid could be unbalanced occurs when a contractor uses
the method of unstable bidding by overbidding in the beginning of the contract in order to reduce
his finances and then will underbid at the end of the project. 6. Why is cost plus a percentage of cost
type of contract not used to a great extent? A cost plus, is a fixed–price contract where the contractor
paid for all the allowed expenses to certain limit

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