A.)A program in the Engineering and Manufacturing Development (EMD) phase has just been instructed to add some new electronic “black boxes” to the aircraft. The Program Executive Office needs a quick estimate of the cost impact these new additions that is as accurate as possible. The Program Office has access to a database of the costs of adding similar equipment to 15 other types of aircraft. What is the most appropriate cost estimating method for this situation?
Analogy
Engineering
Actual Cost
Parametric
B.)Which one of the following best describes DoD philosophy of budgeting for a Fixed Price Economic Price Adjustment contract?
Budget for the anticipated final negotiated price
Budget for the ceiling price
Budget for the target price
Budget for the estimated negotiated price and the maximum amount of the price adjustment clause
(a). A program in the Engineering and Manufacturing Development (EMD) phase has just been instructed to add some new electronic “black boxes” to the aircraft. The Program Executive Office needs a quick estimate of the cost impact these new additions that is as accurate as possible. The Program Office has access to a database of the costs of adding similar equipment to 15 other types of aircraft. What is the most appropriate cost estimating method for this situation? Analogy Engineering Actual Cost Parametric (b) Which one of the following best describes DoD philosophy of budgeting for a Fixed Price Economic Price Adjustment contract? Budget for the anticipated final negotiated price Budget for the ceiling price Budget for the target price Budget for the estimated negotiated price and the maximum amount of the price adjustment clause
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