3.7 Update Lifecycle Cost Estimate for Migration and O&M

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M3 Playbook > Phase 3: Engagement
3.7 Update LCCE for Migration and O&M

3.6 Finalize Migration Approach

3.8 Engage with Labor Relations

Objective:

Update the estimated costs of the migration based on fit-gap analysis, and to manage and plan budgetary needs.

Phase 3 Guidance Legend - Customer, Provider, Shared

Activities

1. Provide migration and Operations and Maintenance (O&M) cost estimates to customer based on requirements validation and fit-gap analysis, process for closing gaps, implementation timeline, and migration and O&M roles and responsibilities between the customer and provider (P)
2. Negotiate and agree on best and final offer for migration and O&M costs (S)
3. Identify changes required to develop Life Cycle Cost Estimate (LCCE) based on selected providers’ cost estimates and consider reasonableness and affordability (C)
4. Update LCCE (according to cost management plan) for migration and O&M (C)
5. Compare actual spending with budget and adjust LCCE as needed (C)
6. Report changes to program costs and actual spending in governance meetings and Status Reports/Dashboards (S)

Inputs
• Migration Approach • Requirements Traceability Matrix (RTM) • Gap Analysis Report • LCCE • Procurement Plan

Outputs

• LCCE for Migration and 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 migration cost estimates from the provider to plan out-year budget needs and requests