Hi ,

have been posting my doubts here without much success of getting prompt replies. Nevertheless, I hope experts here could give me some clues.

I just have 2 doubts about PTA calculation.

FPIP

1. PTA = ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target Cost

 Question : why is it buyer's share ratio? What does PTA measure? Cost of FPIP to the Buyer?

Cost Reimbursible

2. PTA = [{(Ceiling Price - (Target Cost+Fixed fee))/Benefit Sharing} + Target Cost]

Question : what Benefit Sharing ratio to use for scenarios where there is no benefit to share and for scenario where there is benefit to share . Whose ratio to use? Buyer or Seller?

thanks.

J