Return on Investment of Taxpayer Dollar Financial Rationale for engaging Shubnum Shubnum’s pricing structure is designed to provide optimum value for the taxpayer dollar. Self Funding The total taxpayer dollar investment in procuring Shubnum’s services is returned many times over. Considering the returns, the Shubnum’s contract is self-funded. Savings in certain assignments take longer to materialize. However, since shubnum works on a performance-basis for this pricing structure, Shubnum is not paid for their share of the savings until such savings are substantially realized. Creating Value – Return-on-Investment Shubnum creates value through complimentary financial management. This value may be monetized as noted in the ‘Investment Return Analysis’. Such value may be characterized as ‘Best Value’ for the investment of the taxpayer dollar in utilizing Shubnum’s services. Investment Return Analysis Shubnum’s proprietary products and services are optimized to generate ‘Best Value’1. Such value is generally also accompanied with extraordinarily high returns of an investment. An analysis on the returns on investment of taxpayer dollars on a sample real project in the real world indicates an excellent investment by the government and a net present value to the program.         Sample Return for the government’s investment on a sample assignment   Savings a Project Budget $6,817,500 b Procured Price $5,916,599 c Acquisition Savings (a-b) $ 900,901 d Collateral Savings (280hrs x $90/hr) average of $25,200 e Revenue Sharing of direct tangible savings paid out (50% of c plus 50% of d)2 $463,051 f Total Savings on Project (a-b+d-e) $463,050   Investment of Govt, Funds g Prelim Investigations Prices ($2,500 Firm fixed Price3) $2,500 h   i Total Investment (Prelim investigation Priced 'g') $2,500   Returns on Govt. Funds j Return on investment (f/i x 100) 18522% k Time Elapsed 60 days l Annualized Rate of Return (365/60 x j) 112675% 1Best Value is defined in FAR 2.101 to mean the expected outcome of an acquisition that, in the government's estimation, provides the greatest overall benefit in response to the requirement. 2The price to the Federal Government is discounted to 49.875% for acquisition savings and 49.875% of collateral savings 3The price to the Federal Government is discounted to $1795.50 for items 'g' and 'i'