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ITS Procurement Workshop

ITS Procurement Workshop. Module 2: ITS Procurement Characteristics and Challenges. Horror Stories. “Burying the Software Contractor” “A Risky Proposition”. “Burying the Software Contractor”. VDOT disaster – project folded WSDOT – one year late, $$$$ lost. “A Risky Proposition” .

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ITS Procurement Workshop

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  1. ITS Procurement Workshop Module 2: ITS Procurement Characteristics and Challenges

  2. Horror Stories • “Burying the Software Contractor” • “A Risky Proposition”

  3. “Burying the Software Contractor” • VDOT disaster – project folded • WSDOT – one year late, $$$$ lost

  4. “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.

  5. 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.

  6. Acquisition Procurement Work Structure Method of Award Contract Type Workshop Terminology

  7. 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.

  8. 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.

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

  10. “… the supervising, inspecting, actual building, and all expenses incidental to the construction or reconstruction of a highway...” Construction Federal Contract Terminology

  11. “planning, preparation of detailed design, specifications, and cost estimates” Engineering and Design Services Federal Contract Terminology

  12. Allows states to use their own processes to procure projects that are NOT defined as construction under federal rules. Common Rule Federal Contract Terminology

  13. “Special Experimental Project 14” - encourages and solicits innovative procurement and project delivery practices of all types SEP 14 Federal Contract Terminology

  14. 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

  15. Acquisition Procurement Work Structure Method of Award Contract Type Legal Framework Construction Engineering and Design Services Common Rule SEP 14 Terminology Review

  16. Exercise 1: Traditional Vs. ITS Projects • Maturity of the Technology • Design Criteria • How Described • Design Life • Client vs. Vendor Knowledge • Progress Visibility • Procurement Process

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

  18. Exercise 2 If Architects Had to Work like Programmers

  19. 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?

  20. 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?

  21. 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?

  22. 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.

  23. 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?

  24. Virginia DOT-Video

  25. 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

  26. Break - 15 Minutes

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