Jottemdown Manufacturing Inc., (JMI) submitted a Firm Fixed Price Proposal to the Federal Affairs Agency (FAA) to build 20 Seekers for the Stinger Tracking System (STS). JMI is a world leader in the Seeker business and has delivered over 100 of these crucial items. The Seekers must be delivered 24 months after receipt of order.
After a series of "all nighters," JMI and the FAA negotiators have agreed to finally settle, based on the Cost Summary Detail provided below, except the final agreement is for a Cost Plus Fixed Fee (CPFF) award, from JMI's originally proposed Firm Fixed Price.
Your job, in Paper #3, is to close officially close negotiations by writing a Post Negotiation Memorandum (PNM) to provide a descriptive summary of the final Cost Summary details, and structure of the settlement with your organization (JMI) and the Federal Affairs Agency.
The descriptive summary should concentrate on, but not be limited to framing the following:
• Execution of the negotiation process with explicit emphasis on cost analysis techniques that would have been considered in evaluating the proposed direct labor, materials, and ODCs.
• Direct and Indirect Rates.
• Subcontractor evaluation and selection.
• Structured approach to the final negotiated profit.
• Protocol for Confirmation of Negotiations letter.
• TINA Compliance in the Post negotiation sweep.
Cost Summary Detail for JMI Seekers (going into final negotiations)
Proposed Negotiated
Direct Material Sched A 2,200,000.00
Direct Labor Sched B 3,220,000.00
Subcontracts Sched C 4,530,000.00
Other Direct Costs Sched D 78,950.00
Total Direct Costs 10,028,950.00
Indirect Costs
Labor Overhead Sched E 3,384,986.00
Material Overhead 7.00% 154,000.00
Subcontract Overhead 1.35% 61,155.00
Total Cost Input 13,629,091.00
G&A 7.00% 954,036.37
Total Cost 14,583,127.37
COM Sched F 3,579.48
FFP Profit 20.00% 2,916,625.47
Total Price 17,503,332.32
Your Paper 3 should explicitly cover the requirements above, and should be a thematic, coherent, and relevant chronology, with smooth transitions.
The information above is all that you need for this assignment. However, you are allowed to make reasonable assumptions to support additional information that you need to sufficiently justify your robust exposition.