# Vendor Replacement Program Charter

## Program Overview
**Name:** [Program Name]
**Sponsor:** [Executive Sponsor Name, Title]
**Manager:** [Program Manager Name]
**Duration:** [Start Date] - [End Date] (90 days)
**Budget:** $[Amount]

## Business Case
**Problem:** [Vendor pain points and costs]
**Solution:** [AI-augmented team approach]
**Expected Benefits:**
- Cost reduction: [X]% ($[Y]/year)
- Productivity gain: [X]x multiplier
- Quality improvement: [Metrics]
- Strategic value: [IP retention, flexibility, etc.]

## Scope

**In Scope:**
- [Function 1 - e.g., backend development]
- [Function 2 - e.g., API development]
- [Team size - e.g., 5 FTEs]

**Out of Scope:**
- [Function 3 - e.g., frontend development - future phase]
- [Constraint 1 - e.g., production support (vendor retained)]

**Success Criteria:**
- Phase 1: Executive approval, tools selected, team ready
- Phase 2: Pilot quality ≥90% vendor, cost validated
- Phase 3: Production live, vendor exited, 60% cost reduction

## Stakeholders
**Executive Sponsor:** [Name] - Budget approval, strategic decisions
**R&D Leadership:** [Name] - Team allocation, technical decisions
**Finance:** [Name] - Budget tracking, ROI validation
**Security/Compliance:** [Name] - Risk assessment, approval
**Vendor Account Manager:** [Name] - Transition coordination

## Assumptions
1. Executive budget approved by [date]
2. Pilot team available full-time for weeks 5-8
3. Vendor will cooperate with 90-day notice
4. No major production incidents during cutover
5. AI tools perform as demonstrated in POCs

## Constraints
1. Budget: $[X] maximum
2. Timeline: Must complete by [date] (fiscal year end)
3. Resources: 5 FTEs available, no new hires
4. Vendor contract: 90-day notice required
5. Risk tolerance: No production downtime acceptable

## Governance
- **Steering Committee:** [Members] - Monthly reviews
- **Program Team:** [Core members] - Weekly meetings
- **Phase Gates:** Day 30, Day 60, Day 90
- **Status Reporting:** Weekly to sponsor, monthly to executives

## Program Milestones

### Phase 1 Milestones (Days 1-30)

**M1.1: Program Kickoff (Day 1)**
- Executive sponsor approval
- Program team assembled
- Communication plan launched

**M1.2: Business Case Complete (Day 7)**
- Executive presentation delivered
- Financial model finalized
- Board approval (if required)

**M1.3: Tool Selection (Day 14)**
- Evaluation completed
- Security cleared
- Procurement initiated

**M1.4: Pilot Team Ready (Day 21)**
- Team identified and committed
- Training curriculum complete
- Baseline metrics established

**M1.5: Phase Gate 1 (Day 30)**
- All deliverables complete
- Executive go-decision
- Pilot launch authorized

### Phase 2 Milestones (Days 31-60)

**M2.1: Pilot Launch (Day 31)**
- Tools deployed
- Team trained
- First project started

**M2.2: Parallel Run Start (Day 35)**
- Vendor and AI outputs being compared
- Metrics dashboard live
- Daily tracking initiated

**M2.3: Mid-Pilot Review (Day 45)**
- Preliminary results analyzed
- Issues addressed
- Plan adjustments made

**M2.4: Pilot Complete (Day 53)**
- All pilot projects finished
- Final metrics collected
- Team feedback gathered

**M2.5: Phase Gate 2 (Day 60)**
- Go/No-Go decision
- Full rollout approved
- Vendor transition plan finalized

### Phase 3 Milestones (Days 61-90)

**M3.1: Full Team Training (Day 65)**
- All team members trained
- Tools deployed organization-wide
- Support structure in place

**M3.2: Vendor Transition Start (Day 70)**
- Contract wind-down initiated
- Knowledge transfer executing
- Parallel run continuing

**M3.3: Cutover Ready (Day 80)**
- Knowledge transfer complete
- Quality parity achieved
- Cutover approved

**M3.4: Production Cutover (Day 85)**
- Vendor contract concluded
- Full internal operation
- Monitoring intensive

**M3.5: Phase Gate 3 / Program Close (Day 90)**
- Success metrics validated
- ROI achieved
- Program closed

## Critical Path: Longest Dependent Chain

Day 1-7: Business Case → Budget Approval [CRITICAL]
  ↓
Day 8-14: Tool Selection → Security Clearance [CRITICAL]
  ↓
Day 15-21: Procurement → Tool Deployment [CRITICAL]
  ↓
Day 22-30: Training → Pilot Launch [CRITICAL]
  ↓
Day 31-60: Pilot Execution → Validation [CRITICAL]
  ↓
Day 61-70: Full Training → Team Readiness [CRITICAL]
  ↓
Day 71-85: Vendor Transition → Cutover [CRITICAL]

**Total Critical Path: 85 days**
**Buffer: 5 days**

Any delay on critical path delays entire program.
Non-critical tasks (e.g., documentation, case study) have slack.

## Resource Allocation Plan

### Core Program Team (Full-time)
- **Program Manager:** 1 FTE × 90 days = 90 person-days
- **Change Manager:** 0.5 FTE × 90 days = 45 person-days
- **Technical Lead:** 0.5 FTE × 60 days = 30 person-days
**Total Core:** 165 person-days

### Pilot Team (Phase 2: Days 31-60)
- **Developers:** 5 FTE × 30 days = 150 person-days
- **QA/Validation:** 2 FTE × 30 days = 60 person-days
**Total Pilot:** 210 person-days

### Full Team (Phase 3: Days 61-90)
- **All Team Members:** 20 FTE × 30 days = 600 person-days
- **Training time (20%):** 120 person-days
- **Productive time (80%):** 480 person-days

### Support Resources (Part-time)
- **Executive Sponsor:** 2 hours/week × 12 weeks = 24 hours
- **Security/Compliance:** 8 hours/month × 3 months = 24 hours
- **Legal:** 16 hours (contract review)
- **Finance:** 8 hours (ROI tracking)

### External Resources
- **Vendor Transition:** Vendor team cooperation (no cost)
- **Tool Vendor Support:** Included in licensing
- **External Consultant (optional):** 40 hours @ $200/hr = $8,000

## Program Budget

### AI Tools & Technology
- GitHub Copilot: 20 users × $39/mo × 3 mo = $2,340
- GPT-4 API: $500/month × 3 months = $1,500
- Infrastructure: $300/month × 3 months = $900
**Subtotal Technology:** $4,740

### Training & Enablement
- Training curriculum development: 80 hours @ $150/hr = $12,000
- Training delivery (workshops): $5,000
- Training materials and resources: $2,000
**Subtotal Training:** $19,000

### Transition & Knowledge Transfer
- Vendor knowledge transfer sessions: Included in contract
- Documentation sprint: 40 hours @ $100/hr = $4,000
- Parallel run costs (overlapping): $10,000
**Subtotal Transition:** $14,000

### Program Management
- Program Manager: 90 days @ $1,000/day = $90,000
- Change Manager: 45 days @ $800/day = $36,000
- Technical Lead: 30 days @ $1,200/day = $36,000
**Subtotal Management:** $162,000

### Contingency & Buffer
- Risk buffer (10%): $19,974
- Scope change reserve: $10,000
**Subtotal Contingency:** $29,974

**TOTAL PROGRAM BUDGET: $229,714**

### Cost Avoidance (Savings)
- Vendor costs avoided (3 months): $120,000
- **Net Cost Year 1:** $109,714
- **Savings Year 1 (months 4-12):** $360,000
- **Year 1 ROI:** 228%

| Criterion | Weight | Target | Evidence Required |
|-----------|--------|--------|-------------------|
| Executive approval | 20% | Signed charter | Approval email/signature |
| Budget allocated | 20% | $[X] committed | Finance confirmation |
| Tools selected | 15% | 2+ options evaluated | Evaluation scorecard |
| Security cleared | 15% | No red flags | Security signoff |
| Team ready | 15% | 5 trained | Training completion % |
| Baseline metrics | 10% | Defined and measured | Metrics dashboard |
| Risk mitigation | 5% | Plans for top 5 risks | Risk register |

**Pass Criteria:** ≥85% weighted score, no individual criterion <50%