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Variable Pricing Curve

Variable Pricing Curve. Benefits of Variable Pricing. P3 Sole Source Supplier for ASLEP Program Agreement on price guarantees your company will receive all business the P3 Program contracts for Single proposal, single negotiations; Avoid numerous proposal & negotiation activities

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Variable Pricing Curve

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  1. Variable Pricing Curve

  2. Benefits of Variable Pricing • P3 Sole Source Supplier for ASLEP Program • Agreement on price guarantees your company will receive all business the P3 Program contracts for • Single proposal, single negotiations; Avoid numerous proposal & negotiation activities • Greenville is now part of Lockheed Martin Aeronautics’ division, currently reviewing means of integrating our common purchases • Distributors will also utilize your company for parts

  3. Scenario 1 1 - Cumulative Pricing Curve Based On Actual Labor History Curves And Associated Regression Analysis And Material At The Nominal Quantity 2 - Quantity Tables Based On Material Sensitivity Associated With Each Material Break Scenario 2 1 - Quantity Tables Only Based On Material Sensitivity Associated With Each Quantity Break Variable Pricing Curve - Variables

  4. Scenario 1Variable 1 - Cumulative Pricing Curve Cumulative Curve Is Based On A Nominal Price For A Release Qty 12 And Delivery Rate Of 1 Per Month

  5. Scenario 1Variable 2 – Quantity Variables • Quantity Variable Based Upon Variances To A Nominal Release Qty of 12 Percentage Variances to these Nominal Values Applied to the Cumulative Base Price

  6. Ground Rules: 1. Initial Go-Ahead for 20 S/S Following 0 S/S Price Calculation: Recurring: Cum Total Price for 20 S/S $ 171,302 Less Cum Total Price for -0- S/S 0 Price for 20 S/S $ 171,302 Quantity Adjustment (0%) 0 Total Recurring Price $171,302 S/S Price $ 8,565 Option Contract Example 1st AuthorizationScenario 1 Total Price Calculation

  7. Ground Rules: 1. Go-Ahead for 4 S/S Following 20 S/S Price Calculation: Recurring: Cum Total Price for 24 S/S $ 203,074 Less Cum Total Price for 20 S/S 171,302 Price for 4 S/S $ 31,772 Quantity Adjustment (+12%) $ 3,813 Total Recurring Price $ 35,585 S/S Price $ 8,896 Option Contract Example 2nd Authorization Scenario 1 Total Price Calculation

  8. Ground Rules: 1. Go-Ahead for 17 S/S Following 24 S/S Price Calculation: Recurring: Cum Total Price for 41 S/S $ 334,435 Less Cum Total Price for 24 S/S $ 203,074 Price for 17 S/S $ 131,361 Quantity Adjustment (0%) 0 Total Recurring Price $ 131,361 S/S Price $ 7,727 Option Contract Example 3rd Authorization Scenario 1 Total Price Calculation

  9. Scenario 2Variable 1 – Quantity Variables Only • Quantity Variable Based Upon Variances To A Nominal Release Qty of 12 • Provide Cost Elemental Breakdown and basis of estimate for each quantity break

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