Budget lines for ToR preparation

[pcschreiber1]

We need to finalise the proposed budget lines. There was some discussion on whether we should remain high level (so it is more relatable) or low level (so it is more informative). @fretchen Ronald doesn't have a GitHub account, right?

Items	Unit	Cost
Exploration/Analysis and Discovery Phase
Staff
Business analyst
Project manager
Lead developer / software architect
UI/UX Designer
Initial Implementation and Roll-out
Staff
Business Analyst / PO
Project Manager
Development Team incl. Lead Architect and UI/UX
Trainer and/or change manager
Subject matter expert (if not combined in one of the other roles or available at the client)
Infrastructure
Server/hosting
Possible additional hardware or network infrastructure needed (e.g. handheld devices, routers, wifi extensions)
Possible additional software needed
Maintenance Phase
Staff for
Administrator for bug fixing and maintenance
Trainer for retraining users
Possible future adaptations
Infrastructure
Server/hosting

[fretchen]

I think that we just need to add @ronmath to the repo and then he should be able to answer...

[pcschreiber1]

@RonMath, would you have time for this? For editing/drafting the table I would recommend pasting it into an online Markdown Table Generator - don't worry about the table size, the Table Generator automatically adjusts while pasting. Alternatively you can try pasting it into Excel and converting it back with ChatGPT 😄

[fretchen]

This is really a point of discussion to me and I am fairly open to other opinions.

Applicability

I think that we have to make it very clear when such a table could be helpful.

• For small and short projects , I can see the possibility to have clear cost estimates with the detailled staff etc. In the context of FZ those would be most likely "small" accompanying measures, RMMV systems etc.
• For large projects I have the feeling that such a table is of limited usefulness. Here I see a higher importance of well structured estimates for the total cost of ownership to make everyone clear where the main cost drivers are. So there I personally see a high importance in #4 as a tool to guide financial the discussion with the partner.

Comments on the list

• I think that infrastructure shows up twice.
• What is meant with staff ?
• License costs ?
• Cost of trainings in general ?
• Travel ?
• Communication and outreach ?
• In the infrastructure we often distinguish networking from other "enduser stuff".

Off-topic ?

Another topic that keeps me up at night is how we can make people clear that those estimates are often VERY rough and how to handle this uncertainty for all stakeholders in a satisfying manner.

[RonMath]

Costing Scheme for Building and Running Open Source Applications

Separating build from run costs helps distinguish initial setup expenses from ongoing operational expenses, aiding in precise budgeting and financial management.

Cost Summary Build

Cost Category	Estimated Cost (€)
Staff Costs
- Key Experts	€
- Other Experts	€
- Backstopping	€
Sub-Total Staff Cost	€
Administrative Costs
- Project Office	€
- Overheads	€
- Workshops	€
Sub-Total Administrative Expenses	€
Travel Costs
- International and National Travel	€
- Accommodation and Allowances	€
Sub-Total Travel Costs	€
Contingency for Miscellaneous Costs	€
Contract Amount (Net)	€
VAT	€
Contract Amount (Gross)	€

Key Experts

Role	Tasks Within Role
Project Managers	- Oversee the planning and coordination of the project - Manage timelines and resources - Ensure project objectives and milestones are met
System Architects/Engineers	- Design the system infrastructure - Select appropriate hardware - Plan for initial scalability improvements
Software Developers	- Customize the open-source software - Develop necessary integrations and initial feature enhancements
Business Analysts	- Conduct market research and feasibility studies - Gather system requirements

Other experts, depending on the scope and complexity of the project

Role	Tasks Within Role
IT Security Specialists	- Ensure the implementation meets security standards
Database Administrators (DBAs)	- Set up databases and ensure data integrity
Network Engineers	- Configure necessary network infrastructure
Training Coordinators	- Plan and organize initial training sessions
Risk Managers	- Conduct initial risk assessment - Develop contingency plans

Backstopping

The backstopping structure is designed to provide a support system for both key roles and other experts involved in the project. It ensures that specialized knowledge and leadership are always available, minimizing the impact of any individual's temporary absence. This structure is particularly important for maintaining progress and quality in projects that require a high level of expertise and coordination. The actual scope of the backstopping structure depends on the specific project, its complexity and critical elements, and will be specified in the terms of reference for the specific project.

Estimate Run Cost

Cost Category	Description	Estimated Cost (€)
Infrastructure Costs *)	- Hardware (servers, networking equipment) - Cloud services (compute, storage, networking) - Data center costs (space, power, cooling)	€
Personnel Costs	- Salaries and benefits for IT support staff, system/network administrators, software developers, DBAs, security analysts, etc. - Training and professional development (see table on job roles in run phase)	€
Software Support and Maintenance	- External support contracts (if applicable) - Internal resources dedicated to updates, patches, and troubleshooting - Open-source community contributions or membership fees (if applicable)	€
Software Development and Customization	- Ongoing development for custom features and integrations - Bug fixes and performance enhancements	€
Security and Compliance	- Security tools and services (firewalls, intrusion detection systems) - Compliance audits and certifications (e.g., GDPR) - Security training for staff	€
Backup and Disaster Recovery	- Backup software and hardware - Cloud storage for backups - Disaster recovery planning and implementation	€
Networking and Connectivity	- Internet bandwidth - VPN licenses for remote access - Network monitoring tools	€
Monitoring and Management Tools	- System monitoring (performance, health) - Application performance monitoring (APM) tools - Log management and analysis tools	€
Cloud Services Fees	- Fees for cloud computing resources - Data transfer fees - API request fees	€
Licenses for Non-OSS Components	- Licensing fees for any non-open-source software or components used in conjunction with the open-source application	€
Miscellaneous	- Domain registration and SSL certificates - Professional services (e.g. legal advice) - Equipment depreciation	€

*) Costs vary based on scale and whether infrastructure is on-premises, cloud-based, or hybrid.

Experts, depending on the scope and complexity of the application

Job Role	Responsibilities
IT Support Staff/Help Desk	Provide ongoing user support and troubleshooting.
System Administrators	Perform regular system maintenance, apply updates and patches.
Network Administrators	Ensure network reliability and performance.
Database Administrators (DBAs)	Maintain database integrity and performance.
Data Center Administrators	Oversee server operations, manage infrastructure.
Cloud Services Administrators	Manage and monitor cloud-based resources and services.
Security Analysts	Monitor for security breaches, conduct assessments.
Compliance Officers	Ensure compliance with regulations, manage audits.
Technical Trainers	Deliver ongoing training on software updates and features.
Project Managers (for ongoing projects)	Coordinate projects related to the software.
Risk Managers	Monitor and assess risks, develop mitigation strategies.

[gelicko]

@RonMath thanks, that is a very detailed budget list now. Is this something that can realistically be drawn up in such a detailed way at that stage? Also we want it to be general enough that it can cover other funding agencies than KfW (e.g. other banks or GIZ). Knowing that the current reality is different, I would try to keep it simpler and therefore also more flexible by structuring it only along phased and broad subcategories, or along staff and other broad cost types. And is there a reason for not having any designers?

And one more question: the budget is like a matrix now: on the one hand we have staff and other cost categories on the other hand we have costs related to "run" phase, which overlap with the other cost categories. E.g. software development is mostly staff probably mostly the category "software developers". Is that on purpose?

[RonMath]

Looks pretty exhaustive at first, but that is the idea behind it:

• The budget structure tries to be somewhat exhaustive, just to help project management to think about possible cost elements from the start. In my opinion, anything that does not make sense in a specific project setup can easily be deleted.
• For the staff costs/personnel costs budget lines in the build and run budget template, I have again detailed the possible roles to support whoever has to come up with budget planning/estimates. So the idea is to be a bit more detailed, with the understanding that anything that is not needed in a specific context can be deleted or aggregated to a more general budget line.

Does this make sense?