M3 Playbook > Phase 2: Selection > 2.2 Update Life Cycle Cost Estimate (LCCE)
2.1 Select Provider for Engagement
2.3 Monitor and Control Program Execution
2.2 : Update Life Cycle Cost Estimate (LCCE)
Program Management
Objective
Update modernization Life Cycle Cost Estimate using Phase 1 and provider cost estimates to inform budget planning.
View Lessons LearnedRecommended Best Practices
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Customer
Update Life Cycle Cost Estimate (LCCE) based on cost estimates, assessing reasonableness/affordability
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Customer
Compare actual spending with budget for Phase 2 and adjust LCCE as needed
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Customer
Update LCCE for all future phases
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Customer
Report cost/spending changes to leadership meetings & Reports/Dashboards; inform stakeholders
2.2 Lessons Learned
- Conduct life cycle cost analysis, incorporating implementation estimates to plan future budget needs
- Include direct and indirect costs in estimates
- Set realistic expectations for cost savings, tracking costs/efficiencies from implementation through system decommissioning
Stakeholders
Recommended stakeholders, inputs, & outputs may vary by implementation; however, agencies that contributed to this Playbook reported these factors as increasing the likelihood of success.Customer
- Executive Sponsor
- Business Owner
- Program Manager
- PMO Lead
- PMO Team
- Budget or Financial Analyst (as needed)
Inputs
- Life Cycle Cost Estimate (LCCE)
- Business Capabilities
- Target State Concept of Operations
- Target State Systems Environment
- Cost Estimates from Provider
- Scope of Services
Outputs
- Life Cycle Cost Estimate (LCCE)
- Status Reports/Dashboards
