Please clearly indicate your selected answer by highlighting it.
1. When we set a primary goal of recovering our variable costs, what pricing strategy is employed?
2. An economic price adjustment clause was included in a two-year contract for 700,000 gallons of fuel at $3.60 per gallon. The Producer Price Index (PPI) for January 2016, the month of the award, is 179. If the PPI for January 2017 is 185, what will the contract price per gallon adjust to for the second year?
3. External market variables influence the seller pricing strategies EXCEPT:
4. Market research documentation is the foundation for the government’s cost estimate, expected level of competition, contract terms.
5. What is the purpose of Market Research?
6. All the following are price analysis techniques EXCEPT.
7. Which of the following concepts are commonly used as quantitative techniques for contract pricing?
8. What is the most important financial data element in Market Research?
9. Your organization has a requirement to upgrade the electrical wiring in a previously unused aircraft hangar as part of a base renovation program. The scope considers labor and material for the effort. Assume that you have solicited an electrical contractor to perform the re-wiring task. Electrical diagrams are not available, and the subcontractor will have to submit an estimate without a detailed Statement of Work. Your market research indicates fluctuation in conditions, and capabilities to do this effort. What is the most appropriate contract type to use for this effort?
10. You are the contacting specialist helping to form the government estimate for a new security guard contract. Based on the market research data and the information calculated below, which is the BEST Cost Estimating Relationship (CER) to build a government estimate?
Contract |
Price |
Guard Posts |
$ Per Post |
Hours |
$ Per Hour |
1 |
$4,395,000 |
8 |
$549,375.00 |
600,000 |
$7.33 |
2 |
$2,001,000 |
4 |
$500,250.00 |
273,500 |
$7.32 |
3 |
3,500,000 |
6 |
$583,333.33 |
480,000 |
$7.29 |
|
|
|
|
|
|
Range |
$2,001,000-$4,395,000 |
|
$500,250-$583,333.33 |
|
|
Average |
$5,444,319.44 |
|
|
|
$7.31 |
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