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Your program plans to acquire a total of 600 end items costing $535 million over a five-year period. The first production contract is to be awarded in FY04. The number of items to be procured (not delivered) each year and their estimated cost (in then-year dollars) is shown below:
FY Lot Quantity Total Lot Cost
FY04 50 $ 50 million
FY05 100 $ 95 million
FY06 150 $135 million
FY07 150 $130 million
FY08 150 $125 million
Assuming there is no advance procurement and that this is NOT a multiyear contract, what is the correct amount to include in your budget request for FY04 and FY05 for this contract?
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