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19. SOFTWARE PRICING

Table of Contents

19.1 Introduction

19.1.1 SEI Requisites

19.1.2 Complexities of Software Cost Estimating

19.2 Software and the Life Cycle

19.2.1 Types of Software

19.2.2 Software Language

19.2.3 Software Development Cycle;

19.2.4 Additional Modes of Software Development

19.3 Software Cost Estimating Process

19.3.1 Process for Software Estimation Activities

19.3.2 Software Development Standards

19.3.3 Benefits of SW Estimation Process

19.4 Estimating Software Size

19.4.1 Heuristic Approaches ("Rule of Thumb")

19.4.2 Metric Based Models

19.4.3 Reused Code

19.4.4 COTS Sizing

19.4.5 Summary of Metric Based Sizing Models

19.5 Software Cost Estimating Methodologies

19.5.1 Analogy or Comparative

19.5.2 Grass Roots, Engineering Estimate or Bottoms-up

19.5.3 Top-Down Method

19.5.4 Expert Judgment

19.5.5 Parametric Modeling or Algorithms

19.6 Life cycle Costs

19.6.1 CDRL Deliverables Estimates

19.6.2 Software Maintenance Estimates

19.7 Software Pricing Process

19.7.1 Software Price Analysis

19.7.2 Price Analysis Techniques

19.7.3 Price Analysis Tools

19.7.4 Software Cost Analysis

19.7.5 Considerations for Software Cost Analysis

19.7.6 Cost Analysis of a Parametric Estimate

19.7.7 Rules Of Thumb Use in Cost Analysis

19.7.8 Parametric Cost Analysis Example

19.7.9 COTS Special Pricing Considerations

19.7.10 Software Pricing Summary

19.8 Model Selection

19.8.1 Step 1: Determine Needs

19.8.2 Step 2: Select Candidate Model

19.8.3 Step 3: Choose Appropriate Model

19.8.4 Step 4: Reevaluate Model Choice

19.8.5 Model Selection Summary

19.9 Intelligent Use of Models

19.9.1 Input Data

19.9.2 Model Accuracy

19.9.3 Model Calibration

19.10 Software Project Tracking And Measurement

19.10.1 Cost and Schedule Tracking

19.10.2 Performance Measurement Indicators

19.10.3 Software Quality Metrics

19.10.4 Data Collection

19.10.5 Software Tracking and Measurement Summary

19.11 Summary

Appendix 19C. Sample Software Work Breakdown Structure 19C