SSO Cost & Pricing Analysis 2

Question 1

When calculating the total cost of a ship security drill, which indirect cost is most commonly overlooked?

Accepted Answer

Administrative overhead and planning time

Answer

Administrative overhead and planning time are indirect costs frequently omitted from drill cost calculations despite being significant contributors to total expenditure.

Question 2

A Ship Security Officer receives quotes from three vendors for CCTV maintenance: $4,200, $3,800, and $5,100. What is the average (mean) quote price?

Accepted Answer

$4,367

Answer

The mean is ($4,200 + $3,800 + $5,100) / 3 = $13,100 / 3 = $4,366.67, rounded to $4,367.

Question 3

Which pricing model is most appropriate when procuring long-term security equipment maintenance contracts under ISPS Code requirements?

Accepted Answer

Time-and-materials with a not-to-exceed cap

Answer

A time-and-materials contract with a not-to-exceed cap provides cost control while accommodating variable maintenance needs typical in long-term security equipment upkeep.

Question 4

An SSO must justify a $15,000 security system upgrade to management. Which financial metric best demonstrates long-term value?

Accepted Answer

Return on investment (ROI) over 5 years

Answer

ROI over a defined period quantifies the financial benefit relative to cost, making it the most persuasive metric for capital expenditure justification.

Question 5

Under US maritime regulations, when competitive bidding is required for security service contracts, what is typically the minimum number of bids that must be solicited?

Accepted Answer

Three

Answer

US federal procurement guidelines and most company policies require a minimum of three competitive bids to ensure fair pricing and prevent sole-source abuse.

(SSO) Ship Security Officer Practice Test

(SSO) Ship Security Officer Practice Test

SSO Cost & Pricing Analysis 2