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U.S. Department of the Treasury

Fit Cost Methodology


In alignment with the President’s Office of Management and Budget (OMB) Memorandum M-13-08, the Office of Financial Innovation and Transformation (FIT) sought support in the development and testing of a comprehensive Financial Management Line of Business (FMLoB) Cost Methodology to provide the Government with a consistent, repeatable approach for capturing current agency financial management costs. Once developed, the Cost Methodology will provide a standard framework for capturing agency actual costs incurred over time in a consistent manner, enabling FIT with an analytic framework to view and assess the government’s fully-burdened financial management costs for activities and systems supported by individual agencies and Federal Shared Services Providers (FSSPs).


Woodgrove Solutions, LLC (“Woodgrove”) provided senior financial management advisory support to the engagement. Specifically, Woodgrove supported effort to:

  • Develop approach and toolset to collect cost data
    • Leveraged the Federal Management Services Catalog to define scope (and direct costs) of the Financial Management Cost Methodology
    • Evaluated the President’s Management Agenda (PMA) performance metrics for common data characteristics
    • Defined cost types for both IT and Transaction processing services (O&M and DME)
    • Defined non-financial metrics 
    • Defined indirect costs items for collecting common costs
    • Constructed data collection model to gather cost data
    • Constructed user materials to provide cost data definition and data collection
  • Develop cost analytics platform
    • Constructed analytics engine to analyze cost data and produce reports
    • Developed standard views and dashboards to support analytics of agency specific and government-wide cost data
  • Validate cost methodology through pilot at Department of Justice, Department of Labor, Social Security Administration, and Bureau of Fiscal Services
  • Provide data analytics of pilot agency cost data that provided observations of agency internal performance and against government-wide averages, best and worst performers