M3 Playbook > Phase 4: Migration 4.6 Update LCCE for O&M 4.5 Assess Readiness for Go-Live

4.7 Design Target State Organization

Objective:

Update the estimated costs of a migration based on Operations and Maintenance (O&M) Scope of Services to manage and plan budgetary needs.

Phase 4 Guidance

Activities

1. Update O&M cost estimates to customer based on agreed upon scope of services (P) 2. Negotiate and agree on best and final offer for O&M costs (S) 3. Identify changes required to Life Cycle Cost Estimate (LCCE) based on selected provider’s cost estimates and consider reasonableness and affordability (C) 4. Update LCCE (according to cost management plan) for 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 (C)

Inputs • Migration Approach • Requirements Traceability Matrix (RTM) • Gap Analysis Report • LCCE • Procurement Plan Outputs • LCCE for 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 cost estimates from the provider to plan out-year budget needs and requests