M3 Playbook > Phase 2: Selection 2.2 Update Life Cycle Cost Estimate for Engagement, Migration, O&M 2.1 Select Provider for Engagement

2.3 Monitor and Control Program Execution

Objective:

Update the estimated costs of a migration based on Phase 1 and the cost estimates from providers to manage and plan budgetary needs.

Phase 2 Guidance

Activities

1. Identify changes required to the Life Cycle Cost Estimate (LCCE) based on cost estimates provided by providers during Phase 2 including reasonableness and affordability (C) 2. Update LCCE (according to cost management plan) for all future phases (C) 3. Compare actual spending with budget for Phase 2 and adjust LCCE as needed (C) 4. Report changes to projected costs and results of actual spending in governance meetings and Status Reports/Dashboards (C)

Inputs • LCCE • Business Capabilities • Target State Concept of Operations • Target State Systems Environment • Cost Estimates from Provider • Scope of Services Outputs • LCCE for Engagement, Migration, and Operations and Maintenance (O&M)

Stakeholders • Executive Sponsor (C) • Business Owner (C) • Program Manager (C) • PMO Lead (C) • PMO Team (C) • Budget or Financial Analyst (as needed) (C)

Best Practice

• 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 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 estimate