Construction bid: Pedestrian Walkway in a National Park

May 21st, 2016
Studypool Tutor
Price: $10 USD

Tutor description

You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway is to be of standard government design and should involve no unexpected costs. Your present capacity utilization rate is moderate and allows sufficient scope to understand this contract, if you win it. You calculate your incremental costs to be $268,000 and your fully allocated costs to be $440,000. Your usual practice is to add between 60% and 80% to your incremental costs, depending on capacity utilization rate and other factors. You expect three other firms to also bid on this contract, and you have assembled the following competitor intelligence about those companies.

Word Count: 955
Showing Page: 1/4
You operate your own small building company and have decided to bid on a government contract tobuild a pedestrian walkway in a national park during the coming winter. The walkway is to be ofstandard government design and should involve no unexpected costs. Your present capacity utilizationrate is moderate and allows sufficient scope to understand this contract, if you win it. You calculate yourincremental costs to be $268,000 and your fully allocated costs to be $440,000. Your usual practice is toadd between 60% and 80% to your incremental costs, depending on capacity utilization rate and otherfactors. You expect three other firms to also bid on this contract, and you have assembled the followingcompetitor intelligence about those companies.Problem 2IssueRival ARival BRival CCapacityUtilizationFullModerateLowGoodwillVeryConcernedModerateZeroProductionFacilitiesSmall,InefficientMedium,EfficientLarge,v. efficientIncrementalCostplus 35-50%Full cost+ 8-12%Full cost+ 10-15%Incremental> 10%SimilarIncremental<20%, fullsimilarNo "dirty"jobs,no winter jobsNo messy,inconvenientjobsPrefers todisplaycreativityDecisi

Review from student

Studypool Student
" Outstanding Job!!!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1820 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors