Post on 01-Jan-2016
transcript
ITS Procurement Workshop
ITS Procurement Workshop
Module 2: ITS Procurement Characteristics and Challenges
ITS Procurement Workshop
Horror Stories
• “Burying the Software Contractor”• “A Risky Proposition”
ITS Procurement Workshop
“Burying the Software Contractor”
• VDOT disaster – project folded• WSDOT – one year late, $$$$ lost
ITS Procurement Workshop
“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.
ITS Procurement Workshop
Horror Stories:Lessons Learned
• Don’t “bury” your software developer!
• Select software developer based on qualifications.
• Don’t shift all the risk to a system integrator.
ITS Procurement Workshop
Workshop Terminology
• Acquisition• Procurement• Work Structure• Method of Award• Contract Type
ITS Procurement Workshop
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.
ITS Procurement Workshop
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.
ITS Procurement Workshop
Workshop Terminology
• Contract Type – How the contractor is paid.
• Fixed Price, Cost Reimbursement, Incentive
ITS Procurement Workshop
Federal Contract Terminology
• “… the supervising, inspecting, actual building, and all expenses incidental to the construction or reconstruction of a highway...”
Construction
ITS Procurement Workshop
Engineering and Design Services
• “planning, preparation of detailed design, specifications, and cost estimates”
Federal Contract Terminology
ITS Procurement Workshop
• Allows states to use their own processes to procure projects that are NOT defined as construction under federal rules.
Common Rule
Federal Contract Terminology
ITS Procurement Workshop
• “Special Experimental Project 14” - encourages and solicits innovative procurement and project delivery practices of all types
SEP 14
Federal Contract Terminology
ITS Procurement Workshop
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
ITS Procurement Workshop
Terminology Review
• Acquisition• Procurement• Work Structure• Method of Award• Contract Type
• Legal Framework– Construction– Engineering and
Design Services– Common Rule– SEP 14
ITS Procurement Workshop
Exercise 1: Traditional Vs. ITS Projects
• Maturity of the Technology• Design Criteria• How Described• Design Life• Client vs. Vendor Knowledge• Progress Visibility• Procurement Process
ITS Procurement Workshop
Lessons Learned
• ITS is different from traditional projects.
• Different nature implies a different approach to:– project management– procurement
ITS Procurement Workshop
Exercise 2
If Architects Had to Work like Programmers
ITS Procurement Workshop
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?
ITS Procurement Workshop
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?
ITS Procurement Workshop
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?
ITS Procurement Workshop
What’s 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.
ITS Procurement Workshop
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?
ITS Procurement Workshop
Virginia DOT-Video
ITS Procurement Workshop
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 department’s or
agency’s IT procurement process
ITS Procurement Workshop
Break - 15 Minutes