The program plans to acquire a total of 600 end items costing $570 million over a five-year period. The first production contract is to be awarded in FY04. The number of items to be procured (not delivered) each year and their estimated cost (in then-year dollars) is shown below:
FY Lot Quantity Total Lot Cost
FY04 50 $70 million
FY05 100 $110 million
FY06 150 $135 million
FY07 150 $130 million
FY08 150 $125 million
The program office estimates that 10% of each lot's total cost must be requested as advance procurement for components one year in advance for each lot to protect the production schedule. This use of advance procurement has been approved in the program's acquisition strategy.
What is the correct amount to include in your budget request for FY04 for this program?
$70 million for the system line item and $0 million for the advance procurement line item
$63 million for the system line item and $11 million for the advance procurement line item
$63 million for the system line item and $7 million for the advance procurement line item
$70 million for the system line item and $11 million for the advance procurement line item
3 answers
Lot FY Lot Size Total Lot Cost
1 FY14 50 $50 million
2 FY15 100 $95 million
3 FY16 150 $135 million
4 FY17 150 $130 million
5 FY18 150 $125 million
Assuming there is no advance procurement and that this is NOT a multiyear contract, what is the correct amount to include in your budget request for FY14 and FY15 for this contract?
$ 50 million for FY14 and $485 million for FY15
$ 50 million for FY14 and $ 95 million for FY15
$145 million for FY14 and $ 0 million for FY15
$535 million for FY14 and $ 0 million for FY15
I selected 535 Million for fy14 and o million fo fy15, is this right?
3 answers