Chapter 23Calculating Costs and Bid Price

Large projects, as used here, develop custom systems for government or commercial customers. This chapter provides information to help you prepare plans, budgets, and bids for large projects.

23.1 Review of Direct and Indirect Costs

Chapter 15, “Calculating Costs and Price: The Basics,” explained the relations between resources, cost, and price. It explained direct costs for the engineering and testing activities, and as indirect costs needed for support activities such as configuration management, quality assurance, program management, and facilities. It also described ways to calculate project cost and set the price for products and bids. It also explained how to reduce costs if the first estimate ...

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