This paper reports on an on-going research project focused on finding a solution to the problem of estimating costs for software systems that include Commercial Off the Shelf (COTS) components. An activity-based approach is applied to understanding how the integration of COTS into a software system will affect both the development and life cycle costs. All of the major activities associated with the development and sustenance of a COTS inclusive system are identified along with a description and explanation of the parameters that drive costs for those activities.
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