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Solution Bill of Materials Template (FOCUS 1.4)

Pricing basis, licences, cloud per environment, SaaS, hardware, support, services, commitment discounts, assumptions, validity, totals by year, renewals

BusinessFullFOCUS 1.4 (2026); ISO/IEC 19770-1:2017CC BY 4.0billmaterials

How to use: Use it when a bid or business case needs every licence, cloud service, subscription and service priced with its basis. Fill the design traceability and pricing basis first, then each section, marking lines already inside the services estimate. The main pitfall is double counting with the effort estimate or mixing list and discounted prices in one total.

Preview

Solution Bill of Materials: [Solution or bid name]

Bill of materials (BoM) and pricing assumptions for a solution: every software licence, cloud service per environment, SaaS subscription, hardware item, support contract and professional service the solution needs, each with its pricing basis, quantity driver, owner and term, rolled up into totals by year. Cost line names follow the column concepts of the FinOps Open Cost and Usage Specification (FOCUS) 1.4 (ratified 4 June 2026), and licence entitlements are recorded in the way ISO/IEC 19770-1:2017 expects for IT asset management. Replace every [bracketed] value and every row marked Example. This is a format for cost planning, not a quotation, tax or financial advice.

Document control

FieldValue
Document ID[BOM-001]
Solution or bid[Solution name], [Opportunity or project code]
Design basis[HLD / infrastructure design ID and version]
Effort estimate[EST-NNN, version]
Pricing currency[USD]
Prices taken onYYYY-MM-DD
Price validityUntil YYYY-MM-DD (section 11)
Version[0.1]
Status[Draft / In review / Approved / Superseded]
Owner[@solution-architect]
Approvers/reviewers[@commercial-lead], [@procurement], [@finops-lead], [@licensing-specialist]
Last updatedYYYY-MM-DD
Classification[Internal / Commercial in confidence]

Approvals

RoleNameDecisionDate
Solution architect[@name][Submitted]YYYY-MM-DD
Licensing specialist[@name][Approve / Approve with conditions / Reject]YYYY-MM-DD
FinOps or cloud cost lead[@name][Decision]YYYY-MM-DD
Procurement[@name][Decision]YYYY-MM-DD
Commercial lead[@name][Decision]YYYY-MM-DD

Revision history

VersionDateAuthorChange summary
0.1YYYY-MM-DD[@name]First draft from HLD v1.2
0.2YYYY-MM-DD[@name]Example: Added DR environment and commitment discount on production compute
1.0YYYY-MM-DD[@name]Example: Approved for bid submission; prices taken YYYY-MM-DD

Contents

1. Scope and traceability

ItemValue
Solution scope[Example: Customer self-service portal, CRM integration, identity federation]
Environments priced[Example: PROD, DR (pilot light), DEV, SIT, UAT]
Horizon[Example: Year 0 (4-month implementation, including 4 weeks of hypercare) and Years 1 to 3 of operation; Year 1 starts at the end of hypercare]
Sites or regions[Example: One primary cloud region, one DR region]
Volume drivers[Example: 20,000 monthly active users in Year 1, growing to 30,000 by Year 3; 30 million API requests per month]
Architecture componentHLD referenceBoM linesNote
Portal services on containers (Example)HLD 6.2BOM-CL-001, BOM-CL-101
Customer database (Example)HLD 6.4BOM-SW-003, BOM-CL-002, BOM-CL-102, BOM-CL-201Open-source engine, managed service
API gateway (Example)HLD 6.3BOM-CL-004
CRM connector (Example)HLD 7.1BOM-SW-001
Customer identity (Example)HLD 7.2BOM-SA-001
Logging and monitoring (Example)HLD 9.3BOM-CL-006, BOM-CL-104, BOM-SA-002
Content delivery network (Example)HLD 6.1NoneIncluded in the customer's existing CDN contract; listed in section 11.2

2. Pricing basis

TopicDecisionNote
Pricing currency[Example: USD]Lines priced in another currency are converted at the rate below
Exchange rate[Example: EUR 1 = USD 1.08, source and date]Re-check before submission
Price concept used in totals[Example: Effective cost]See the definitions below
Taxes[Example: Excluded; shown as ChargeCategory Tax only in the customer quote]
Hours per month for hourly cloud prices[Example: 730]8,760 hours per year divided by 12
Price sources[Example: Public cloud price calculator export dated YYYY-MM-DD; vendor quotes Q-201 and Q-202]Attach in section 14.2
Price escalation[Example: Licence uplift 5% per year; cloud prices flat]
Rounding[Example: Unit prices as quoted; line and summary totals to two decimals]

Price concepts, after the FOCUS cost columns:

  • List cost: list unit price multiplied by quantity, before any negotiated or commitment discount. Use it to show savings.
  • Contracted cost: contracted unit price (after negotiated discounts) multiplied by quantity.
  • Effective cost: the cost after all discounts, with prepaid commitments spread over the periods they cover. Use it for budgets and totals by year.
  • Billed cost: what appears on the invoice for a billing period; it differs from effective cost when commitments are paid up front.

3. Line item conventions

AttributeValuesPurpose
BoM IDBOM-SW-NNN licences, BOM-CL-0NN production cloud, BOM-CL-1NN non-production cloud, BOM-CL-2NN DR cloud, BOM-SA-NNN SaaS, BOM-HW-NNN hardware, BOM-SP-NNN support, BOM-PS-NNN servicesStable reference
Service categoryFOCUS ServiceCategory value, for example Compute, Databases, Storage, Networking, Identity, Management and GovernanceGrouping that matches billing data
Charge categoryUsage or Purchase (Tax, Credit and Adjustment appear only in billing)Separates consumption from purchases
Charge frequencyOne-Time, Recurring or Usage-BasedFeeds totals by year
Pricing categoryStandard, Committed, Dynamic or OtherShows which lines rely on commitments or variable rates
Pricing unit and driverUnit and the design figure that sets the quantityMakes the quantity reviewable
Included in services estimateYes or NoPrevents double counting with the effort estimate
Owner and payerWho procures and who paysAvoids gaps at handover

4. Software licences

BoM IDProduct and editionLicence metricQtyUnit price (USD)TermAnnual cost (USD)Entitlement evidenceLicence notes
BOM-SW-001 (Example)CRM integration connector, enterprise editionPer runtime instance26,000Annual subscription12,000Order form OF-332One PROD and one non-PROD instance; DR use permitted on a cold standby
BOM-SW-002 (Example)Test automation toolPer named user41,050Annual subscription4,200Vendor quote Q-202Included in the services estimate (EST-001 NL-02); delivery period only
BOM-SW-003 (Example)PostgreSQL database engineOpen source10Perpetual0SPDX identifier PostgreSQLRun as a managed service; see BOM-CL-002
[BOM-SW-NNN][Product][Per user / core / instance / tenant / revenue band][ ][ ][Term][ ][Contract, order, SPDX ID][Constraints]

Licence checks before approval:

  1. Confirm the metric against the deployment design (cores, vCPUs, instances, users) for every environment, including DR and test.
  2. Confirm rights for non-production, disaster recovery, failover and cloud deployment; some licences need a separate entitlement for each.
  3. For open-source components, record the licence identifier and any obligations (attribution, source offer, network use clauses) and route copyleft licences to the Software Licence Review (compliance/software-licence-review).
  4. Record where the entitlement evidence is stored, so the IT asset management process can reconcile deployment against entitlement.

5. Cloud services by environment

5.1 Production

BoM IDService categoryResourcePricing unitQty per monthList unit price (USD)List cost per month (USD)Sizing driver
BOM-CL-001 (Example)ComputeContainer nodes, 4 vCPUNode-hour3 x 730 = 2,1900.192420.483 nodes across 3 zones, capacity plan CP-2.1
BOM-CL-002 (Example)DatabasesManaged PostgreSQL, high availabilityInstance-hour7300.68496.401 primary with synchronous standby
BOM-CL-003 (Example)StorageObject storage for attachmentsGB-month2,0000.02346.001.2 million cases, average 1.66 MB attached (1,992 GB), rounded up to 2,000 GB
BOM-CL-004 (Example)NetworkingAPI gateway requestsMillion requests303.50105.0030 million requests per month at Year 1 volume
BOM-CL-005 (Example)NetworkingInternet data transfer outGB1,5000.09135.00Average 50 KB per response
BOM-CL-006 (Example)Management and GovernanceLog and metric ingestionGB3000.50150.00Logging standard, 30-day retention
Production total1,352.88

5.2 Non-production

BoM IDService categoryResourcePricing unitQty per monthList unit price (USD)List cost per month (USD)Sizing driver
BOM-CL-101 (Example)ComputeContainer nodes, scheduled 50% of hoursNode-hour2 x 365 = 7300.192140.16DEV, SIT and UAT share one cluster; off outside working hours
BOM-CL-102 (Example)DatabasesManaged PostgreSQL, single zoneInstance-hour7300.34248.20Masked copy of production data
BOM-CL-103 (Example)StorageObject storageGB-month5000.02311.50Subset of attachments
BOM-CL-104 (Example)Management and GovernanceLog and metric ingestionGB1000.5050.007-day retention
Non-production total449.86

5.3 Disaster recovery

BoM IDService categoryResourcePricing unitQty per monthList unit price (USD)List cost per month (USD)Sizing driver
BOM-CL-201 (Example)DatabasesCross-region read replicaInstance-hour7300.34248.20Pilot light, RPO 15 minutes
BOM-CL-202 (Example)StorageReplicated object storageGB-month2,0000.02346.00Full copy of attachments
DR total294.20

Example summary: total list cost per month is 1,352.88 + 449.86 + 294.20 = USD 2,096.94, or USD 25,163.28 per year before discounts. Compute for DR is not priced: the DR plan starts containers from images during an invocation, so the cost appears only when DR is used. State that assumption explicitly (section 11.1).

6. SaaS and third-party services

BoM IDServiceTier and metricYear 1 qtyUnit price (USD)Year 1 (USD)Year 2 (USD)Year 3 (USD)Growth assumption
BOM-SA-001 (Example)Customer identity servicePer monthly active user per month20,000 MAU0.0153,6004,5005,40025,000 MAU in Year 2, 30,000 in Year 3
BOM-SA-002 (Example)Error trackingTeam plan, per month126312312312Flat
BOM-SA-003 (Example)Transactional emailPlan up to 50,000 emails per month120240240240Flat while under 50,000 per month
Total4,1525,0525,952

7. Hardware and network

BoM IDItemQtyUnit price (USD)One-time (USD)Delivery termsLead timeWarranty
BOM-HW-001 (Example)Hardware security keys for administrators1055550Incoterms 2020 DAP, customer site2 weeks1 year
[BOM-HW-NNN][Item][ ][ ][ ][Incoterms rule, place][ ][ ]

Network items that are services (private links, VPN, DNS) belong in section 5; record here only physical equipment.

8. Support and managed services

BoM IDSupport lineCoverageBasisAnnual cost (USD)StartsNote
BOM-SP-001 (Example)Cloud provider support planBusiness hours plus 24x7 for critical casesFixed monthly fee 2503,000Start of Year 1Check the provider's current plan terms; many plans are a percentage of spend
BOM-SP-002 (Example)CRM connector vendor supportIncluded in BOM-SW-001Included0Contract startSeverity 1 response within 4 hours
BOM-SP-003 (Example)Application management service from the integratorIncident, problem and minor change, business hoursFixed monthly fee 3,50042,000Start of Year 1 (end of hypercare)Service levels in the SLA (ops/service-level-agreement)

9. Professional services

BoM IDServiceSourcePrice (USD)Charge frequencyIncluded in services estimate
BOM-PS-001 (Example)Implementation services, fixed priceEST-001 v1.0, section 9.4 indicative price485,553One-TimeNot applicable: this line is the estimate
BOM-PS-002 (Example)Independent penetration testTest provider quote, carried as EST-001 NL-0412,000One-TimeYes: not added again to totals
[BOM-PS-NNN][Service][Source][ ][ ][Yes / No]

The implementation price BOM-PS-001 already contains the delivery-period costs of non-production cloud (BOM-CL-101 to BOM-CL-104 for 4 months, EST-001 NL-01), production and DR cloud from go-live to the end of hypercare (BOM-CL-001 to BOM-CL-006, BOM-CL-201 and BOM-CL-202 for 1 month, EST-001 NL-05), the test tool (BOM-SW-002), travel and the penetration test. Section 12 therefore starts those lines in Year 1 only, or not at all, and shows 0.00 for cloud in Year 0.

10. Discounts, commitments and credits

LineMechanismPricing categoryCommitment categoryTermList cost per year (USD)Saving per year (USD)Effective cost per year (USD)
BOM-CL-001 (Example)1-year compute commitment, 30% below listCommittedUsage (fixed node-hours)12 months, renewed yearly420.48 x 12 = 5,045.765,045.76 x 0.30 = 1,513.733,532.03
Production cloud total (Example)Commitment on BOM-CL-001 onlyStandard and Committed1,352.88 x 12 = 16,234.561,513.7314,720.83
[Line][Negotiated discount / Commitment / Promotional credit][ ][Spend / Usage][ ][ ][ ][ ]

Commitment rules: [Example: commit only to the steady-state baseline of 3 nodes; scale-out capacity stays at list price; review utilisation monthly in the FinOps Cost Review (ops/finops-cost-review)]. Credits (promotional or migration credits) are shown here as a note and are not deducted from totals unless they are contracted.

11. Pricing assumptions, exclusions and validity

11.1 Assumptions

IDAssumptionLines affectedOwnerConfirm by
PRA-001 (Example)Volumes follow the capacity plan Year 1 profile; growth only in identity usersBOM-CL-004, BOM-SA-001Product ownerYYYY-MM-DD
PRA-002 (Example)DR compute is started only during an invocation or testNone priced (DR compute excluded; see the note under 5.3). BOM-CL-201 and BOM-CL-202 run all the timePlatform leadYYYY-MM-DD
PRA-003 (Example)Connector licence uplift is capped at 5% per year in the order formBOM-SW-001ProcurementYYYY-MM-DD
PRA-004 (Example)Prices are taken from the public price list of the primary region on YYYY-MM-DDSection 5Solution architectYYYY-MM-DD

11.2 Exclusions

[List what is not priced and who carries it.] Example: content delivery network (existing customer contract), CRM licences (customer), taxes and duties, cost of DR invocation, end-user devices, internet connectivity at customer sites, translation services.

11.3 Validity

ItemValue
Price validityExample: 60 days from YYYY-MM-DD
Vendor quote expiryExample: Q-201 on YYYY-MM-DD, Q-202 on YYYY-MM-DD
Exchange rate re-checkExample: At submission and at contract signature; re-price if the rate moves more than 3%
Re-pricing triggersExample: Design change, volume change above 10%, quote expiry, provider price change

12. Totals by year

CategoryYear 0 (USD)Year 1 (USD)Year 2 (USD)Year 3 (USD)Total (USD)
Professional services, BOM-PS-001485,553.000.000.000.00485,553.00
Hardware, BOM-HW-001550.000.000.000.00550.00
Software licences, BOM-SW-0010.0012,000.0012,600.0013,230.0037,830.00
Cloud production, effective (section 10)0.0014,720.8314,720.8314,720.8344,162.49
Cloud non-production0.005,398.325,398.325,398.3216,194.96
Cloud DR0.003,530.403,530.403,530.4010,591.20
SaaS and third-party services0.004,152.005,052.005,952.0015,156.00
Support and managed services0.0045,000.0045,000.0045,000.00135,000.00
Total (Example)486,103.0084,801.5586,301.5587,831.55745,037.65

Example checks: Year 1 is 12,000.00 + 14,720.83 + 5,398.32 + 3,530.40

  • 4,152.00 + 45,000.00 = 84,801.55. Year 2 adds the connector uplift (600.00) and identity growth (900.00) to Year 1. The run cost over Years 1 to 3 is 258,934.65, so operations add about 53% (258,934.65 / 485,553) to the implementation price over three years, a ratio worth showing to the customer early. Cloud in Year 0 is 0.00 because the delivery-period cloud is inside BOM-PS-001 (section 9).

13. Ownership, renewals and change control

BoM IDContract holderPayerRenewal or end dateNotice periodAsset register entry
BOM-SW-001 (Example)CustomerCustomerYYYY-MM-DD, annual60 daysITAM-SW-0412
BOM-CL-001 commitment (Example)Customer cloud accountCustomerYYYY-MM-DD, annualNot cancellableCloud commitment register
BOM-SA-001 (Example)CustomerCustomerYYYY-MM-DD, annual30 daysITAM-SA-0077
BOM-SP-003 (Example)Customer with integratorCustomerEnd of Year 390 daysSupplier register

Change control: [Example: any change to quantities, tiers or prices after approval is made in a new BoM version, with the change summarised in the revision history and the totals in section 12 recomputed; the commercial lead decides whether the change affects the offer].

14. Glossary and references

14.1 Glossary

TermMeaning in this template
Bill of materialsComplete list of the products and services a solution needs, with quantities and prices
Licence metricUnit by which a licence is counted, such as user, core, instance or revenue band
EntitlementRight to use software, proved by a contract, order or licence key
List costList unit price times quantity, before discounts
Effective costCost after discounts, with prepaid commitments spread over the periods they cover
Commitment discountLower price in exchange for committing to a spend or usage level for a term
Pilot lightDR pattern where data is replicated but compute is started only when needed
Incoterms ruleTrade term that allocates delivery, risk and cost between seller and buyer

14.2 References

ReferenceVersion or date checkedUse
FinOps Open Cost and Usage Specification (FOCUS), focus.finops.org and github.com/FinOps-Open-Cost-and-Usage-SpecVersion 1.4, ratified 4 June 2026; CC BY 4.0Cost column concepts and allowed values for charge, pricing and service categories
ISO/IEC 19770-1:2017, IT asset management systems, iso.orgEdition 3 (2017), with Amendment 1:2024; check the current status at iso.orgEntitlement and asset register expectations (structure only)
ICC, Incoterms 2020 rules, iccwbo.org2020 editionDelivery terms for hardware
SPDX License List, spdx.org/licensesCurrent list at date checkedOpen-source licence identifiers
[Cloud price calculator export][Date]Section 5
[Vendor quotes][Quote IDs and dates]Sections 4, 6, 7

Standard and licence note

Based on the FinOps Open Cost and Usage Specification (FOCUS) 1.4, published by the FOCUS project (a Joint Development Foundation project, supported by the FinOps Foundation) under the Creative Commons Attribution 4.0 licence: the column names ListCost, ContractedCost, EffectiveCost and BilledCost and the allowed values of ChargeCategory, ChargeFrequency, PricingCategory, CommitmentDiscountCategory and ServiceCategory are used with attribution, and their descriptions are paraphrased in original words. Structure also aligned with the entitlement and asset register concepts of ISO/IEC 19770-1:2017, a copyrighted standard of which only the number and concepts are used. Incoterms is a registered trademark of the International Chamber of Commerce. All other text and worked figures are original and illustrative; prices in the example are not real offers. Check the current FOCUS release and standard editions before use. Template licence: MIT.

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