# ROM pricing and basis of estimate

The RFI explicitly asks for rough order of magnitude pricing for market research, not official quotes. A response should price the full proposed obligation and expose assumptions rather than equate a GPU bill with delivered software. [Current notice](https://sam.gov/opp/5e1bed195d704dc189d7a231c4a5ab9c/view).

**The figures below are an illustrative planning scenario created for this draft. They are not bidder-approved rates, supplier quotes, market research on competitor prices or a price commitment.** Actual rates, workshare, tools, security scope and support duration are missing. Replace or approve these inputs before using a numerical estimate in an external response.

## Transparent illustrative scenario

Assume a blended fully burdened **selling rate of $150–$200 per labor hour** solely to demonstrate the calculation. This is not an assertion about the bidder's rate or the market. The rate includes labor burden, overhead and fee in this scenario. Add a separate **15% planning allowance on labor** for uncertainty and warranty correction, then direct-cost allowances. Validate the allowance against actual risks; it is not a confidence interval.

| Phase | Assumed labor hours | Labor range | 15% labor allowance | Assumed direct costs | Illustrative phase total |
|---|---:|---:|---:|---:|---:|
| I — design and prototype | 2,800–3,600 | $420,000–$720,000 | $63,000–$108,000 | $20,000–$50,000 | **$503,000–$878,000** |
| II — integration and operational tests | 1,400–2,000 | $210,000–$400,000 | $31,500–$60,000 | $10,000–$30,000 | **$251,500–$490,000** |
| III — deployment and operational ramp | 1,000–1,600 | $150,000–$320,000 | $22,500–$48,000 | $10,000–$30,000 | **$182,500–$398,000** |
| I–III combined | 5,200–7,200 | $780,000–$1,440,000 | $117,000–$216,000 | $40,000–$110,000 | **$937,000–$1,766,000** |

Low scenarios use low hours/rates/allowances; high scenarios use high inputs. These are sensitivity cases, not a statistical range. Phase I hours encompass the proposed four-person engineering core, fractional PM/specialists and test participation; build a role-by-week staffing plan before asserting availability or the 16-week internal target. The six-month Phase I, 90-day Phase II and 90-day Phase III deadlines remain governed by their draft triggers and Government acceptance. [Schedule](roadmap.md).

Direct costs are placeholders for approved development/test infrastructure, test equipment/access, permitted third-party tools, accessible test participation and other project-specific purchases. Do not charge Government-furnished resources again. Record whether taxes, travel or procurement fees apply. No actual purchase, license approval or cloud capacity has been obtained through this worksheet.

## Support and warranty need separate treatment

For Phase IV, an illustrative **80–160 labor hours per month** at the same assumed rate yields **$12,000–$32,000 per month**, plus approved incremental infrastructure/direct costs. This is not priced 24/7 staffing or a resolution-time guarantee. The draft calls for response within 24 hours; validate coverage, escalation and workload before selecting a support model. Total Phase IV duration and total POP are unknown, so a responsible whole-contract total cannot be fixed from these attachments.

Phase III includes production workflow management, monitoring and QC at the agreed scale. Phase IV includes continuing production/audio/metadata validation, security, backup/recovery, reporting and training as well as incident support. The example assumes a limited initial operational ramp; the draft does not establish production volume or human-review workload. Recalculate Phase III and the illustrative 80–160 monthly hours against those inputs before claiming the full obligation is covered. These are not staffing guarantees for an unspecified production service.

Covered defects during the specified 12-month warranty must be corrected without additional charge to the Government. The internal risk/warranty allowance is a pricing provision, not a customer subscription or extra defect-correction fee. Separate maintenance/enhancement services from covered warranty work so the same effort is not charged twice. [Draft SOW §§3.8–3.9, 3.12, §4.1](https://sam.gov/api/prod/opps/v3/opportunities/resources/files/34eacfe92b1a46228b9f90674c4c60e1/download).

## Cost drivers to replace with evidence

A phase-based estimate must include PM/reporting, day-30 documents and diagrams, parser coverage, audio/TTS work, codec/protector integration, human QA, intended-reader participation, accessible UI, AWS interfaces, security controls, testing, training, deployment, rollback, warranty and support. Separate development-machine costs from production operation and Government-furnished services.

The most consequential sensitivities are review minutes per accepted hour, content/language complexity, legacy Word support, protection-tool automation/rights, security authorization, integration scope, benchmarked throughput and Government feedback/rework. A missing requirement should become an assumption and question, not vanish from the price.

The [hardware worksheet](prototype-hardware.md#estimate-compute-and-review-effort) estimates compute and review effort only. It is not this proposal ROM and must not be presented as total ownership cost. Treat the approximately 3,000-book annual background figure as context until duration, mix and turnaround are established.

## Before issuing a ROM

Have an authorized estimator replace the illustrative rate and hours with a work breakdown, actual personnel availability, direct-cost basis and a risk register. Review third-party rights, ownership treatment and non-recurring access obligations. State the currency, estimate date, assumed scope, exclusions, range method, support unit and period covered. Clearly label the RFI estimate as nonbinding market-research information. Keep private margins, negotiated rates and internal risk tolerances outside this public wiki.

RFI preparation costs are borne by the responder under the notice and are not assumed reimbursable contract work. No competitor price or percentage saving has been inferred from this scenario.