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M3 Framework Introduction M3 Framework Overview M3 Phase 0 - Assessment M3 Phase 1 - Readiness M3 Phase 2 - Selection M3 Phase 3 - Engagement M3 Phase 4 - Migration M3 Phase 5 - Operations M3 Resources
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
Image Map Phase 0: Assessment Phase 1: Readiness Phase 2: Selection Phase 3: Engagement Phase 4: Migration Phase 5: Operations
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 GuidanceResponsible Party - Customer, Provider, Shared
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)

• Business Capabilities
• Target State Concept of Operations
• Target State Systems Environment
• Cost Estimates from Provider
• Scope of Services

• LCCE for Engagement, Migration, and Operations and Maintenance (O&M)
• 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