Over a five-year period beginning in FY04, your program is planning to procure a total quantity of...

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Over a five-year period beginning in FY04, your program is planning to procure a total quantity of 200 aircraft at a total cost of $4500 million (then-year dollars). The acquisition plan calls for an initial contract award in FY04 for 22 of these aircraft at a price of $30 million apiece. The contractor expects to incur $350 million of costs related to this contract in FY04. Assuming no advance procurement is required, how much should you request for FY04 only?
$4500 million 
$350 million 
$30 million 
$660 million

David · Accepted Answer

Q:  Over a five-year period beginning in FY04, your program is planning to procure a total 
quantity of 200 aircraft at a total cost of $4500 million (then-year dollars). The acquisition plan 
calls for an initial contract award in FY04 for 22 of these aircraft at a price of $30 million apiece.

Over a five-year period beginning in FY04, your program is planning to procure a total quantity of 200 aircraft at a total cost of $4500 million (then-year dollars). The acquisition plan calls for an...

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