I received a call from one of my friend asking if I had any idea about how to decide the cost of a project if it needs to be used for bidding for an Agile SCRUM kind of a project. I was puzzled at the thought at that very moment. I directed him to one of my friend who is an expert in SCRUM.
But, later I searched about this on internet and found few good posts pointing to some solutions and thoughts regarding the same, as following --
....the price for the project was fixed, but the features themselves were negotiable according to rules agreed to in the contract. The features were broken down, and time was tracked on each feature. Whenever the development team took longer than anticipated, the client removed scope. Conversely, when the development team finished a feature early, scope was added. In order to add incentive, effort added or removed was discounted by 50%. For example, if the development team finished 2 days early, only 1 day of extra scope was added. On the other hand, if the team finished 2 days late, the client only removed 1 day of scope. The contract actually specified the rules by which scope was added or removed.....
More detail at -- http://www.codesqueeze.com/how-to-sell-agile-to-fixed-bid-contract-clients/
Additionally, TDD, test coverage reports bundled with CI are key to achieve the required quality and agility during the project execution.