Question

Your program has a proposed RDT&E-funded project scheduled to start in January 2005 which is expected to take 16 months to complete. The project is expected to cost a total of $16 million (then-year dollars), with cost expected to be incurred at a rate of $1 million per month. The work to be performed under this project is Non-Divisible effort. It also has been determined that no contractor is willing to accept a contract for less than the entire 16 months of effort. What is the correct amount to include in your budget request for this project?

$ 9 million for FY04 and $ 7 million for FY05
$ 9 million for FY05 and $ 7 million for FY06
$ 16 million for FY05 and $ 0 million for FY06
$ 16 million for FY04 and $ 0 million for FY05