AI-generated handoff memo
Finance review packet
The RFP uses a $4.8M fixed fee that includes deliverables, integrations, transition activities, training, launch support, and stabilization. That structure creates margin risk because mainframe integration is required while documentation, access, and test data depend on the agency. The SLA exhibit also introduces service credits up to 15% of monthly fees and states that credits do not replace remediation obligations.
Recommended specialist action
Recommend conditional finance approval. Re-price the bid with a mainframe integration contingency, model worst-case service-credit exposure, and require a staffing estimate before final margin approval.
Main facts for review
- Fixed-fee implementation risk
- Margin pressure assessment
- Service-credit exposure (15%)
- Milestone acceptance dependency
Questions for Finance
- What contingency should be added for unknown mainframe integration scope?
- Do SLA credits materially change target margin at the proposed price?
- Is fixed-fee pricing acceptable if week-one technical discovery is required?