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 the LCCE of a migration based on Phase 1 and the cost estimates from providers to manage and plan budgetary needs.
View Best PracticesTask Activities
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Customer
Identify changes required to the Life Cycle Cost Estimate (LCCE) based on cost estimates prepared by providers during Phase 2 including reasonableness and 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 changes to projected costs and results of actual spending in governance meetings and Status Reports/Dashboards, informing QSMOs as necessary
2.2 Best Practices
- Conduct life cycle cost analyses and incorporate initial migration cost estimates from the provider in order to plan out-year budget needs and requests
- Be realistic about when cost savings will be realized by tracking cost and efficiencies achieved during the full implementation of the vision through to the decommissioning of the legacy system
- Include direct and indirect costs in estimates
Stakeholders
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
