Paper 2 involves the continued use of the scenario in Paper 1for a contemplated Firm Fixed Price type contract, to build 100 Multi-functional Hyperwidget Packages (MHP). The MHPs must be delivered within24 months after contract award. The focus of Paper 2 is on the application profit. This Assignment considers the cost elements, from Paper 1, and assumes no changes except to the extent the profit changes the total cost.
The government’s profit objective is given in the MHP IGCE withthe Cost Summary Detail provided below. Keep in mind that potential Contractors will also be developing profit position against the MHP IGCE target position.You are nowtasked, in Paper 2, to prepare for negotiations by developing a range of profit objectives to include:
• Creation of a floor, target, and ceiling profit position by completing a DD Form 1547, with the objective to conclude negotiations with the Contractor to achieve a price as close to the MHP IGCE as possible while never going beneath the floor profit position.
• Explanation of the key factors, and conditions, which affect the range of profit (floor, target, and ceiling) based onfactors, and conditions in the weighted guidelines method. Complete the DD Form 1547(s), as a requirement, to support your narrative. Clearly state assumptions you make in your calculations, and cite the appropriate regulation,as needed, for support.
Your Paper2is expected to explicitly cover the requirements listed above, and should be a thematic, coherent, and relevant chronology, with smooth transitions.In all cases, provide objective SUPPORT with minimum, but sufficient and convincing detail for its implementation. Research these items for additional support, as needed, for framework.
Keep your thoughts organized by using good writing mechanics. Please include an Introduction, followed by your narrative section, and Conclusion. Place a space between paragraphs, and please use double spacing and HEADINGS to match the requirements and major points of your Paper for a clear flow of your responses to the Assignment requirement.Always start with an Introduction and end with a Conclusion. Abstracts are not required, and should not be included.
Your exposition should reflect considerable thought and go beyond restating the text. A minimum of four (4) peer reviewed sources are required. You are expected to follow the APA guidelines for citations. This means that statements of “facts” supported by references must be both cited within the text and be listed in the references section of at the paper’s end. Do not include templates within the body of your Paper. If needed, you may add the DD Form 1547(s) as Exhibits after the Reference List.
Your total response should be the equivalent of no less than 3and no more than 5typed, double-spaced pages not counting the Cover Page and Reference List. This paper is worth 25 points and is due on March25, 2018. You are required to observe and pay strict attention to the Academic Integrity Policies and Guidelines in your writing. Submit your completed Paper to the Assignments Folder.
The information above is all that you need for completing this Assignment. However, you can make reasonable assumptions to support additional information that you need to sufficiently justify your narrative.
MHP IGCE (from Paper 1)
PROCUREMENT SENSITIVE – FOR OFFICIAL USE ONLY
Cost Element Rate Proposed
Direct Material 4,000,000.00
Direct Labor 922,500.00
Other Direct Costs 40,200.00
Total Direct Costs 7,012,700.00
Labor Overhead 833,326.50
Material Overhead 7.50% 300,000.00
Subcontract Overhead 2.00% 41,000.00
Total Cost Input 8,187,026.50
G&A 6.00% 491,221.59
Total Cost 8,678,248.09
Profit 8.00% 694,259.85
Total Price 9,373,688.20