Over a five-year period beginning in FY14, your program is planning to procure a
ID: 2744818 • Letter: O
Question
Over a five-year period beginning in FY14, your program is planning to procure a total quantity of 200 aircrafts (5 Lots) at a total cost of $4500 million (then-year dollars). The acquisition plan calls for an initial contract award in FY14 for 22 (Lot 1) of these aircraft at a price of $30 million apiece. The contractor expects to incur $350 million of costs related to this contract in FY14. Assuming no advance procurement is required, how much should you request for FY14 only?
$660 million
$350 million
$30 million
$4500 million
Over a five-year period beginning in FY14, your program is planning to procure a total quantity of 200 aircrafts (5 Lots) at a total cost of $4500 million (then-year dollars). The acquisition plan calls for an initial contract award in FY14 for 22 (Lot 1) of these aircraft at a price of $30 million apiece. The contractor expects to incur $350 million of costs related to this contract in FY14. Assuming no advance procurement is required, how much should you request for FY14 only?
$660 million
$350 million
$30 million
$4500 million
Explanation / Answer
The acquisition plan calls for an initial contract award in FY14 for 22 (Lot 1) of these aircraft at a price of $30 million apiece.
so, the request for FY14 is = 22 aircraft * $30 million per aircraft = $660 million
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