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20201009153458contract Type Evm Exercise 1 1

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Campbellsville University
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TYPES OF CONTRACT/ EVM EXERCISE
Instructions: Within the context of your Week 2 Business Case project you will address and
identify the different types of contracts that are available for supply chain management.
You will copy and paste the Business Case.
For each of the six (6) contract types below you will provide a description of each contract type
(based on the weekly readings and material from the textbook) and then identify where each of
the contracts could be utilized within your project. These need to be specific examples and
explain why the specific contract type would be ideal for these supplies (goods or services).
There is no word minimum but each should cover the required material and provide a logical
analysis of the specific information sought.
Business Case:
Fixed-Price Contracts
Firm-Fixed-Price (FFP) Contract:
A Firm-Fixed-Price contract is an agreement where the price provided is not adjustable. The
rigidity of the price is based on the fact that contractor experience fixed costs while performing
the contract. It is applied by the contractors of the government to shift the risk to the vendor and
also to control cost.
Fixed-Price-Incentive-Fee (FPIF) Contract: is a contract where the buyer pays an amount defined
by the contract to the seller; the seller can then earn an additional amount after meeting criteria
defined by the performance.
Fixed-Price-Economic-Price-Adjustment (FP-EPA) Contract: is a contract in which buyers pay
the reseller a fixed price that is already stipulated in the contract.
Cost-Reimbursable Contracts
Cost-Plus-Fixed Fee (CPFF) Contract:
Is a cost-reimbursement contract which allows payments of the contract at a negotiated fee that is
mostly fixed at the inception of the contract. Fixed cost mostly varies with the work to be done.
Cost-Plus-Award-Fee (CPAF) Contract:
Cost-Plus-Incentive Fee (CPIF) Contract: This is a cost-reimbursement contract that allows for
the original contract to be negotiated later hence adjusted by use of formula on the basis of the
relationship target costs and total allowable costs.

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TYPES OF CONTRACT/ EVM EXERCISE
Instructions: You have been instructed to provide a detailed analysis of the current progress of
cost and schedule for an on-going project. You have been provided the Planned Value, Earned
Value, Actual Cost and Budget at Completion. You will calculate the Variances, Indexes and
Estimates for the project to provide a comprehensive report on the project. The comprehensive
report should explain how the results are calculated, what the results mean, and what specific
action steps should or need be taken to bring the project back within scope. Definitions must cite
Kloppenborg textbook.
Planned Value (PV)
50
Earned Value (EV)
80
Actual Cost (AC)
35
Budget at Completion (BAC)
150
Schedule Variance (SV)
30
Cost Variance (CV)
45
Schedule Performance Index (SPI)
1.60
Cost Performance Index (CPI)
2.29
Estimate to Completed (ETC Method 1)
30.63
Estimate to Complete (ETC Method 2)
70
Estimate at Completion (EAC)
35
To-complete Performance Index (TCPI)
0.61
Comprehensive Situational Analysis:
Schedule variance
Schedule variance assess if the project is on track.
The Schedule variance = Earned Value (EV) Planned Value (PV)
=80 50=30
Since the value is positive, it shows that the project is ahead of schedule.
Cost Variance
It assesses how much the project has gone under or above the budget.
It is calculated by formula =Earned Value Actual cost
= 80- 35 = 45

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TYPES OF CONTRACT/ EVM EXERCISE Instructions: Within the context of your Week 2 Business Case project you will address and identify the different types of contracts that are available for supply chain management. You will copy and paste the Business Case. For each of the six (6) contract types below you will provide a description of each contract type (based on the weekly readings and material from the textbook) and then identify where each of the contracts could be utilized within your project. These need to be specific examples and explain why the specific contract type would be ideal for these supplies (goods or services). There is no word minimum but each should cover the required material and provide a logical analysis of the specific information sought. Business Case: Fixed-Price Contracts Firm-Fixed-Price (FFP) Contract: A Firm-Fixed-Price contract is an agreement where the price provided is not adjustable. The rigidity of the price is based on the fact that contractor experience fixed costs while performing the contract. It is applied by the contractors of the government to shift the risk to the vendor and also to control cost. Fixed-Price-Incentive-Fee (FPIF) Contract: is a contract where the buyer pays an amount defined by the contract to the seller; the seller can then earn an additional amount after meeting criteria defined by the performance. Fixed-Price-Economic-Price-Adjustment (FP-EPA) Contract: is a contract in which buyers pay the reseller a fixed price th ...
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