PROFENG Professional Engineering Network
PROFENG Toolbox/Engineering Decision Center/Software Development Partner TCO Calculator
SOFTWARE ENGINEERING SERVICES

Software Development Partner TCO Calculator

Build a transparent project-cost scenario for an external software engineering partner, including delivery labor, rework allowance, management overhead and tooling.

Results

Direct engineering labor$204,000
Modeled rework/change allowance$24,480
Client management overhead$18,278
Project tooling/environment$10,800
Modeled project TCO$257,558Budgeting scenario only. Contract, tax, travel, cloud usage and transition costs may require separate treatment.

Engineering method

This is a budgeting model, not a vendor-price estimate. Direct labor is hours × rate. Rework is modeled as a percentage of direct labor. Management overhead is applied to direct labor plus rework, then tooling is added over the project duration.

Model / conversion relationship
TCO = direct labor + rework allowance + management overhead + project tooling.

Professional references

These references establish the standards, technical framework or authoritative engineering context used for this page. Vendor commercial terms are not used as engineering evidence.

Engineering-use note. This PROFENG resource is for screening, comparison and technical preparation. Replace assumptions with project data and use the responsible qualified professional, applicable standards, codes and authority requirements for final design, compliance or safety decisions.

Related PROFENG resources

↗

Software Development & Engineering Partner Selection Guide

Select an external software-development or engineering partner using architecture, delivery evidence, security practice, maintainability and commercial controls rather than hourly rate alone.

→↗

DevSecOps Supplier Evidence Guide

A practical evidence checklist for evaluating whether a software supplier can integrate security into its actual development and deployment workflow.

→

Commercial independence

PROFENG may display a separately disclosed approved partner after the engineering content. Partner status never changes formulas, conversion factors, procurement criteria, technical references or calculation results. Pending and unapproved programs remain hidden.