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The calculation of the Ceiling Price is: (Target Cost + Buyer's Share of the cost overruns + Seller's Target Profit or Fixed Fee). The Target Price will be: (Target Cost + Seller's Target Profit or Fixed Fee).
The PTA is the difference between the ceiling and target prices, divided by the buyer's portion of the share ratio for that price range, plus the target cost. PTA = ((2,450,000 – 2,200,000)/ 0.80) + 2,000,000 = 2,312,500.
PTA = (PTO Delay A + PTO Delay B + PTO Delay C Overlap Applicant's delay), where PTA>=0. (i) A-delay (35 USC §154(b)(1)(A)) (ii) B-delay (35 USC §154(b)(1)(B)) (iii) C-delay (35 USC §154(b)(1)(C)) (iv) Applicant's delay (35 USC §154(b)(2)(C) & 37 CFR 1.704) (v) Overlap delay (35 U.S.C. A 154(b)(2)(A)) Resources:
Patent term adjustment (PTA) is a process carried out by the United States Patent and Trademark Office (USPTO) that awards day-for-day credits to the normal patent term based on delays in prosecution at the USPTO. ... PTA is intended to compensate for USPTO delays in patent prosecution.
Ty Weston, PMP The calculation of the Ceiling Price is: (Target Cost + Buyer's Share of the cost overruns + Seller's Target Profit or Fixed Fee). The Target Price will be: (Target Cost + Seller's Target Profit or Fixed Fee).
The point of total assumption (PTA) is the point above which the seller effectively bears all the costs of a cost overrun on a fixed price 'incentive fee' (FIF or FBI) contract. ... The maximum amount the buyer will pay on an FIF contract is the Ceiling Price; the target price is always less than this.
The PTA is derived from the following formula: PTA = ((ceiling price target price/government (overrun) share ratio)) + target cost. As such, it can be manipulated by changing any of the formula's values. How does the FIF profit sharing formula work?
Fixed price incentive fee (FIF) contract. A type of contract where the buyer pays the seller a set amount (as defined by the contract), and the seller can earn an additional amount if the seller meets defined performance criteria.
Target Cost = 1,000. Target Fee = 100. Benefit/Cost Sharing Ratio for cost overruns = 80% Client / 20% Contractor. Benefit/Cost Sharing Ratio for cost under runs = 60% Client / 40% Contractor.
The calculation of the Ceiling Price is: (Target Cost + Buyer's Share of the cost overruns + Seller's Target Profit or Fixed Fee). The Target Price will be: (Target Cost + Seller's Target Profit or Fixed Fee).
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