Total Cost of Ownership Elements

Potential Costs Incurred

Initial Acquisition Recurring
Year Spending
License Acquisition Data
Initial Acquisition Price X
% Discount Initial Acquisition X
Future Purchase Discount % X
Future Product Purchases X
Maintenance/Support Data
Annnual Support Initial Acquisition X X
Annual Support Escalation % X
Annual Support Future Purchases X
Education/Training Spending Data
% Discount X
Annual Spending X X
Consulting Services (CS) Data
Initial CS Discount % X
Initial CS Spending X
Future CS Discount % X
Future CS Purchases X
Configuration of COTS Product Data
Initial Configuration Spending X
Recurring Configuration Spending X
Hosting Fees X X
Hardware Data
Hardware Product Spending X X
Hardware Maintenance X X
Other Vendor Services X X
Other Costs/Spending (Define Below)* X X

*The above list provides many common elements of TCO. Since each acquisition is unique,
you should add additional elements as needed for the specific acquisition.
 Total Cost of Ownership Example
Initial Acquisition
Year 2 Year 3 Year 4 Year 5
Year
License Acquisition Data
Initial Acquisition Price $7,500,000
% Discount Initial Acquisition 62.0%
Future Purchase Discount % 55.0% 55.0% 55.0% 55.0%
Future Product Purchases $0 $250,000 $350,000 $450,000
Maintenance/Support Data
Support % License Fees 22.0%
Annnual Support Initial Acquisition $1,650,000 $1,699,500 $1,750,485 $1,803,000 $1,857,090
Annual Support Escalation % 3.0% 3.0% 3.0% 3.0%
Annual Support Future Purchases $0 $55,000 $133,650 $236,660
Education/Training Spending Data
% Discount 5.0%
Annual Spending $100,000 $50,000 $25,000 $25,000 $25,000
Consulting Services (CS) Data
Initial CS Discount % 5.0%
Initial CS Spending $100,000
Future CS Discount % 3.0% 3.0% 3.0% 3.0%
Future CS Purchases $0 $0 $0 $0
Configuration of COTS Product Data
Initial Configuration Spending $250,000
Recurring Configuration Spending $0 $0 $50,000 $0
Hosting Fees $0 $0 $0 $0 $0
Hardware Data
Hardware Product Spending $50,000 $25,000 $0 $25,000 $0
Hardware Maintenance $5,000 $7,500 $7,500 $7,500 $7,500
Other Vendor Services $10,000 $10,000 $10,000 $10,000 $10,000
Other Costs/Spending (Define Below)* $0 $0 $0 $0 $0
Total Cost/Year $9,665,000 $1,792,000 $2,097,985 $2,404,150 $2,586,250

5.0% NPV TCO $17,479,110

*The above list provides many common elements of TCO. Since each acquisition is unique, you should add additional elements as needed for the
specific acquisition.
 Total Cost of Ownership BV Range

Best Value Range

Least
Current Offer Most Aggressive
Aggressive
License Acquisition Data
Initial Acquisition Price $7,500,000 $5,500,000 $7,300,000
% Discount Initial Acquisition 62.0% 73.0% 63.0%
Future Purchase Discount % 55.0% 73.0% 55.0%
Maintenance/Support Data
Support % License Fees 22.0% 18.0% 22.0%
Annnual Support Initial Acquisition $1,650,000 $990,000 $1,650,000
Annual Support Escalation % 4.5% 2.0% 4.5%
Education/Training Discount 5.0% 10.0% 5.0%
Consulting Services (CS) Data
Initial CS Discount % 5.0% 10.0% 5.0%
Future CS Discount % 3.0% 10.0% 3.0%
Configuration of COTS Product Data
Initial Configuration Spending $250,000 $150,000 $250,000
Recurring Configuration Spending $0 - $50,000 $0 - $50,000 $0 - $50,000
Hosting Fees $0 $0 $0
Hardware Data
Hardware Product Spending $50,000 $0 $50,000
Hardware Maintenance $5,000 $0 $5,000
Other Vendor Services $10,000 $0 $10,000
Other Costs/Spending (Define Below)* $0 $0 $0

*The above list provides many common elements of TCO. Since each acquisition is unique, you should add
additional elements as needed for the specific acquisition.