Fixed price or cost-plus for an armoured vehicle programme in Poland
New to this industry?Start with its one-minute summary: Defence and space
The prompt
A European defence company is negotiating a programme to build armoured vehicles for Poland and reports in EUR. It estimates the programme will cost EUR 400 million. The ministry offers two contracts: a fixed price of EUR 440 million, or cost-plus with a fixed fee of 7 percent of the estimated cost. The company thinks there is a real chance that costs run 15 percent over the estimate, because some suppliers are new. What profit does each contract give if costs are on estimate and if they overrun, and what does the ministry pay under cost-plus with the overrun? (Figures are illustrative.)
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
Clarifying questions, with the interviewer's answers
My notes on this case
0 of 5,000 characters. Saves automatically.