Contract Calculation Exercise

Questions: I. The seller has agreed to a fixed price incentive (FPI) contract. The target cost is $450,000 and the target fee is 10% of the target cost. The price ceiling is $540,000 and the buyer/seller share ratio 80/20. The final actual cost is $430,000. Determine the following:Final adjusted fee: Final price: 2. The seller has agreed to a fixed price incentive (FPI) contract. The target cost is $450,000 and the target fee is 10% of the target cost. The price ceiling is $500,000 and the buyer/seller share ratio is 80/20. The final actual cost is $520,000. Determine the following:Final adjusted fee: Final price: 3. The seller has agreed to a cost plus fixed fee (CPFF) contract. The target cost is $450,000 and the fixed fee is 10% of the target cost. The final actual cost is $500,000. Determine the following:Final fee: Final price: 4. The seller has agreed to a cost plus incentive fee (CPIF) contract. The target cost is $450,000 and the target fee is I0% of the target cost. The maximum fee is $50,000, the minimum fee is $17,000 and the buyer/seller share ratio is 80/20. The final cost is $600,000. Determine the following:Final adjusted fee: Final price:5. The seller has agreed to a cost plus incentive fee (CPIF) contract. The target cost is $450,000 and the fixed tee is I 0% of the target cost. The maximum fee is $50,000. the minimum fee is $17.000 and the share ratio is 80/20. The final cost is $400,000.Determine the following: Final adjusted fee: 6. Some 10 months ago you awarded a cost plus fixed fee (CPFF) contract to a large company to provide a telecommunications infra-structure at several locations. The contract was negotiated with a target cost of$200,000 and a fee of 0% of the target cost. The contract is complete and the final costs come in at $150.000. What is the total amount you must pay to the supplier? 7. As part of a project to renovate the airport in Peekskill, New York, you awarded a cost plus incentive fee (C PIF) contract for upgrading the restaurant and lounges. The target costs were negotiated at $200,000, with a 10% target profit. The buyer/seller share ratio is 80/20. The project was completed at $180,000. How much is the total contract cost which must be paid to the supplier? 8. You negotiated a cost plus fixed fee plus award fee (CPFF/AF) contract with a seller for a projected total value of $505,000, of which $500,000 is the target cost and $5,000 is the amount of the fixed fee. You have also set aside a budget for a possible award fee, with a not-to-exceed amount of$25,000. The seller's final cost comes in at $533,000. What is the final payment to the seller? Answers: I. The seller has agreed to a fixed price incentive (FPI) contract. The target cost is $450,000 and the target fee is 10% of the target cost. The price ceiling is $540,000 and the buyer/seller share ratio 80/20. The final actual cost is $430,000. Determine the following:Final adjusted fee: 43,000 (43000*10%)Final price: 4,73,000 (430000+43000)2. The seller has agreed to a fixed price incentive (FPI) contract. The target cost is $450,000 and the target fee is 10% of the target cost. The price ceiling is $500,000 and the buyer/seller share ratio is 80/20. The final actual cost is $520,000. Determine the following:Final adjusted fee: 50,000 (520000*10% or 50,000 lower)Final price: 500,000 (Price ceiling)3.The seller has agreed to a cost plus fixed fee (CPFF) contract. The target cost is $450,000 and the fixed fee is 10% of the target cost. The final actual cost is $500,000. Determine the following:Final fee: 45,000 (450000*10%)Final price: 5,45,000 (500000+45000)4. The seller has agreed to a cost plus incentive fee (CPIF) contract. The target cost is $450,000 and the target fee is I0% of the target cost. The maximum fee is $50,000, the minimum fee is $17,000 and the buyer/seller share ratio is 80/20. The final cost is $600,000. Determine the following:Final adjusted fee: 50,000 (600000*10% or 50,000 lower)Final price: 650,000 (600000 + 50000)5. The seller has agreed to a cost plus incentive fee (CPIF) contract. The target cost is $450,000 and the fixed tee is I 0% of the target cost. The maximum fee is $50,000. theminimum fee is $17.000 and the share ratio is 80/20. The final cost is $400,000.Determine the following: Final adjusted fee: 440,000 (400000 + 10% of 400000)6. Some 10 months ago you awarded a cost plus fixed fee (CPFF) contract to a large company to provide a telecommunications infra-structure at several locations. The contract was negotiated with a target cost of$200,000 and a fee of 0% of the target cost. The contract is complete and the final costs c ome in at $150.000. What is the total amount you must pay to the supplier? 150,000 (150,000 + 0% fees)7. As part of a project to renovate the airport in Peekskill, New York, you awarded a cost plus incentive fee (C PIF) contract for upgrading the restaurant and lounges. The target costs were negotiated at $200,000, with a 10% target profit. The buyer/seller share ratio is 80/20. The project was completed at $180,000. How much is the total contract cost which must be paid to the supplier? 183,600 (180000+ 20% of 10% of 180,000)8. You negotiated a cost plus fixed fee plus award fee (CPFF/AF) contract with a seller for a projected total value of $505,000, of which $500,000 is the target cost and $5,000 is the amount of the fixed fee. You have also set aside a budget for a possible award fee, with a not-to-exceed amount of$25,000. The seller's final cost comes in at $533,000. What is the final payment to the seller?563,000 (533,000 + 5,000 + 25,000) References https://www.fm-world.co.uk/by-topic/procurement-projects/procurement-projects-articles/https://www.pmi.org/learning/contract-procurement-management-1782