ITS Procurement Workshop

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ITS Procurement Workshop

• Module 2 ITS Procurement Characteristics and
  Challenges

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Horror Stories

• Burying the Software Contractor
• A Risky Proposition

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Burying the Software Contractor

• VDOT disaster project folded
• WSDOT one year late, lost

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A Risky Proposition

• Project delayed 6 months.

• ITS Division got a black eye in the view of the
  Commissioner

• System Integrator bore all costs of testing.

• System Integrator went out of business.

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Horror StoriesLessons Learned

• Dont bury your software developer!
• Select software developer based on
  qualifications.
• Dont shift all the risk to a system integrator.

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Workshop Terminology

• Acquisition
• Procurement
• Work Structure
• Method of Award
• Contract Type

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Workshop Terminology

• Acquisition
• Comprises the complete cycle from concept to
  installation and (sometimes) maintenance and
  operations.

• Procurement
• A step in acquisition. Includes the work and
  contract structures, contractor selection and
  payment structure.

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Workshop Terminology

• Work Structure
• How is the work allocated to contracts. Are
  multiple contracts used?
• Method of Award
• How the contractor is selected.
• Qualifications, cost, combined qualifications and
  cost.

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Workshop Terminology

• Contract Type
• How the contractor is paid.
• Fixed Price, Cost Reimbursement, Incentive

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Federal Contract Terminology
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Federal Contract Terminology
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Federal Contract Terminology
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Federal Contract Terminology
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Procuring ITS Projects

• FHWA determined that many ITS projects are not
  considered Construction (10-6-99 Memo)
• If it is not Construction, then method of
  contract award does not have to be low-bid

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Terminology Review

• Acquisition
• Procurement
• Work Structure
• Method of Award
• Contract Type

• Legal Framework
• Construction
• Engineering and Design Services
• Common Rule
• SEP 14

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Exercise 1 Traditional Vs. ITS Projects

• Maturity of the Technology
• Design Criteria
• How Described
• Design Life
• Client vs. Vendor Knowledge
• Progress Visibility
• Procurement Process

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Lessons Learned

• ITS is different from traditional projects.
• Different nature implies a different approach to
• project management
• procurement

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Exercise 2

• If Architects Had to Work like Programmers

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Architects as Programmers

• Part 1 Discussion
• Can you identify any missing requirements?
• Is there enough information to correct
  deficiencies of the existing house?
• What are the main functions for the new house?

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Architects as Programmers

• Part 2 Discussion
• What are the implications to designing for the
  1952 Gibson refrigerator?
• How could siding specification (aluminum, vinyl,
  composite) be improved?
• Who makes decisions on design?

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Review Questions

• Given that the specifications for this house are
  problematic, how should the contractor and client
  work together?
• Should this be a low bid selection?
• How would this affect procurement?

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Whats The Point?

• We would never try to design a house like this.
  But this is how we have been procuring ITS.
• And, you cannot specify ITS as readily as you can
  a house.

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Lessons Learned

• It is difficult to describe things completely
  using words - there are often things missing,
  misinterpretations and conflicts.
• Need a process that allows iterative approach to
  complex requirements development. More iterative
  than traditional approach - why?

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Virginia DOT-Video
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Virginia DOT-Lessons Learned

• One impetus for change is FAILURE
• Definition of a construction project
• Wireless ? construction
• Fiber construction
• Separate the ITS Work
• Look at other departments or agencys IT
  procurement process

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Break - 15 Minutes