TLDR: 1 - How frank should I be regarding the ability to realistically estimate costs for VR software development, particularly as an independent developer?

2 - Is my response effective?

"Before we can finalize our review, the team would like to know a bit more information about your project. Do you intend to release this as open sourced?

The amount requested was not captured on the application. Is there a specific amount needed for your project? If it is above $25k we ask that you provide a high level breakdown of how the funds would be used. We have found it useful to use a phased approach."

My Reply: In regards to open source, from the beginning I have planned to allow users to build their own scenarios, then upload them to a cloud, where other users can rate and download them. This will allow the Fire & EMS to take the most challenging calls of their careers and recreate them in VR. Usually they are charged a premium for this type of customization. For example, Chiefs will frequently ask how much it will cost to customize the pump panel to match their trucks. (the color/names/location of valves) They are amazed when I show them how Unreal, through features like Blueprint, can make customized experiences much more affordable. (and in my case, included with the software). Additionally, I currently have a free “Escape From Fire” module for school aged children to learn how to escape a fire. I have no intention of charging for it. For convenience, here is a link to that module.

As a nontraditional, independent developer, I think it’s too early to estimate the total cost of development. Rather, I need a year to be able to work on this full-time and 6 months to promote the simulator so it can be self-sufficient (I've spent 3 years on this part-time). The budget I've requested includes a year of my current salary at the fire department and other incidentals like hardware or conferences.