14. Pricing Narrative

Pricing Narrative Overview

3Wrkz will provide pricing for both models required by the RFP:

1. National SaaS / Enterprise Model
2. Single-Tenant North Texas Model

The recommended award path for Phase 1 is the Single-Tenant North Texas Model. That model is the most direct path to an on-time production deployment for VNA, while still allowing the solution to be built on a multi-tenant-aware core application and data architecture. In other words, Phase 1 is priced and delivered as a single-tenant implementation for VNA, but the underlying design will reduce the amount of rework required if VNA later elects to fund a fuller multi-tenant commercialization effort in Phase 3.

For proposal purposes, 3Wrkz intends to present pricing as an all-in commercial package rather than a set of pass-through charges. That means implementation, hosting, support, warranty obligations, and expected operating costs will be represented inside the bid rather than broken out as separate client-managed cost streams.

Pricing Structure by Model

Single-Tenant North Texas Model

This is the recommended pricing model for contract award and Phase 1 execution. It is intended to cover the VNA-specific implementation, production deployment, and five-year operating horizon for the North Texas use case.

For rough planning purposes, this model should be framed approximately as follows:

1. Phase 1 implementation and launch: $2.7M
2. Ongoing hosting, support, and maintenance: approximately $700K per year after go-live
3. Estimated five-year TCO*: approximately $6.2M

   * See Pricing Assumptions below for important context on the assumptions underlying these estimates.

This model assumes delivery of a single-tenant production deployment for VNA, supported by a multi-tenant-aware core and data-layer design, but without attempting to fully fund or deliver the broader commercialization scope up front.

National SaaS / Enterprise Model

This model is included because the RFP requires it, but it should be viewed as a broader commercial posture rather than the recommended Phase 1 award basis. It assumes a higher level of product hardening, tenant-model preparation, operational packaging, and future-scale positioning than is strictly required to deliver the initial VNA production tenant.

For rough planning purposes, this model should be framed approximately as follows:

1. Phase 1 / initial enterprise-ready build posture: $3.5M
2. Ongoing hosting, support, and maintenance: approximately $800K per year
3. Estimated five-year TCO*: approximately $7.5M

   * See Pricing Assumptions below for important context on the assumptions underlying these estimates.

This model is directionally useful for the required pricing comparison, but it should not be interpreted as a commitment that full commercialization scope can be definitively estimated before the Phase 3 requirements are better defined.

What the Pricing Includes

At a high level, the Phase 1 pricing should include:

1. project management, architecture, design, development, QA, migration, reporting, training, and go-live support
2. hosting and environment costs required for the proposed delivery model
3. baseline support and maintenance pricing for the five-year TCO horizon
4. warranty obligations required by the RFP
5. expected platform operating costs that are known well enough to be included in the bid

Phase 2 and Phase 3 Position

3Wrkz should acknowledge Phases 2 and 3, but it would not be responsible to present them today as if their scope were fully estimable. Too much of that work depends on later discovery, operating decisions, and stage-gate direction from VNA.

Accordingly:

1. Phase 1 should be priced now as the firm implementation basis
2. Phase 2 and Phase 3 should be acknowledged as real future workstreams
3. final commercial proposals for Phase 2 and Phase 3 should be developed once scope is better defined and authorized

Support and Warranty Position

The RFP requires a minimum 90-day warranty period after go-live. 3Wrkz's pricing narrative should confirm that this warranty period is included at no additional cost and that production defects identified during that window will be addressed within the agreed defect-management and support process.

After the warranty period, the pricing should transition into the ongoing support and maintenance model used for the five-year TCO view. That support posture should include:

1. the subcontracted 24/7 frontline support model described elsewhere in the proposal
2. 3Wrkz escalation coverage for technical issues, fixes, and deeper troubleshooting
3. normal maintenance, release, and application support activities required to keep the platform operational

Pricing Assumptions

The final pricing package should clearly state its assumptions. At this stage, the core assumptions are:

1. Phase 1 is the only phase being priced as a committed implementation scope
2. the priced delivery basis is a Phase 1A / MVP scope that can credibly target the RFP's requested implementation window and October 2026 delivery posture, potentially with reduced initial scope (see 9A. Delivery Schedule Realism.md for more detail)
3. the production deployment for contract award is a single VNA tenant
4. the core platform and data architecture are still designed with future multi-tenant expansion in mind
5. pricing is presented as all-in rather than as pass-through cloud or support costs
6. exact third-party product selections, if any remain open at award time, may require final commercial adjustment once the selected products are confirmed
7. support pricing assumes an ongoing annual operating relationship across the five-year TCO window

These assumptions should remain visible in the final commercial package so that the pricing narrative stays aligned with the technical and implementation sections of the proposal.

Schedule and Scope Qualification

As explained in 9A. Delivery Schedule Realism.md, 3Wrkz does not believe the full current Phase 1 requirement universe can be delivered responsibly within the requested 4.5-month window regardless of team size or cost. The pricing in this proposal should therefore be understood as being based on a more tightly bounded Phase 1A / MVP implementation scope sized to fit the requested timeframe and target October 2026 delivery objective.

If VNA elects to preserve broader scope inside the initial implementation rather than narrowing the go-live baseline, or if discovery and solution design confirm that the build must extend beyond the currently assumed delivery window, the implementation cost will increase accordingly. That increase would reflect the added duration of project management, architecture, business analysis, development, QA, release management, environment support, and related delivery activity required to sustain the project over a longer execution period.

For that reason, the proposed pricing should be interpreted as valid for the scoped Phase 1A / MVP delivery basis and associated schedule assumption, not as an unconditional fixed price for the entire current Phase 1 scope independent of final scope and timeline decisions.

Nonprofit Pricing Consideration

Because VNA is a nonprofit organization, 3Wrkz also intends to reflect a meaningful giveback component in the final commercial proposal rather than treating the engagement as a purely standard commercial account. That giveback should create concrete value for VNA while remaining separate from the core delivery and support pricing.

3Wrkz plans to make the following donations to VNA:

1. a $20,000 donation to VNA at the end of the build
2. a no-charge AI enablement session for the VNA development team

The AI enablement session is a paid offering (free for VNA) that 3Wrkz provides for many clients, focused on teaching development teams how to use modern AI tooling effectively when creating software solutions. Together, these two items provide a visible nonprofit benefit in the proposal while keeping the core delivery and support pricing commercially sustainable.