Your program has a proposed RDT&E-funded project scheduled to start in January 2015 which is expected to take 16 months to complete. The project is expected to cost a total of $16 million (then-year dollars), with cost expected to be incurred at a rate of $1 million per month. The work to be performed under this project is Non-Divisible effort. It also has been determined that no contractor is willing to accept a contract for less than the entire 16 months of effort. What is the correct amount to include in your budget request for this project?
To determine the correct amount to include in your budget request for this project, you need to consider the total cost over the entire duration of the project.
Given that the project is expected to start in January 2015 and take 16 months to complete, you can calculate the total cost by multiplying the cost per month ($1 million) by the number of months:
Total Cost = Cost per Month * Duration in Months
= $1 million/month * 16 months
= $16 million
Therefore, the correct amount to include in your budget request for this project is $16 million.