Developing an Efficient and Repeatable Life Cycle Cost Estimation Process within an IPT Framework Joint ISPA

1. Developing an Efficient and Repeatable Life Cycle Cost Estimation Process within an IPT Framework Joint ISPA/SCEA Conference 2010Submitted by Kevin McKeel May 19, 2010

2. Agenda Project Description Constraints Resources Why LCCEs are Important to IPTs How We Did It LCCE Process TruePlanning� Framework LCCE Overview Keys to Success Cost Estimation Best Practices What Happened Results Conclusions 2

3. Project Description Our team developed an LCCE for Risk Assessment Management Program (RAMP), a program managed by DHS/ICE/Office of the OCIO RAMP is designed to support aspects of the Federal Protective Service (FPS) mission focused upon improving security at federal facilities RAMP has four major objectives: Increase Inspector operational efficiency at 9,000 federal facilities 700 Inspectors utilizing hand-held devices to interface with RAMP Enforce a standardized assessment methodology Improve customer service Maintain a database for tracking risks, analyzing trends, maintaining oversight on reporting, and managing the workforce. 3

4. Constraints Client had limited resources and lacks an embedded cost estimation capability or parametric tools IPT did not have organic cost estimation capability LCCEs had to be completed within an aggressive schedule, and with low impact to PMO that pass oversight agency scrutiny Continuous pressure from Program Managers in an attempt to influence costs Requirements were not stable Sponsor lacked faith in prior Program Office cost estimates 4

5. Resources Parametric Estimation Tool-TruePlanning� by PRICE� Systems PRICE� Systems-Industry Leading Parametric Tool Provider Widely respected by client Independent Cost Analysis and Decision Analysis Support by Logapps LLC and PRICE� Systems Seasoned cost estimation capability Non-advocate role IPT Support by ALON Experienced staff of acquisition professionals Managing several IT Projects for DHS ICE CIO Government SMEs-provided by ICE Senior management brought in on as-needed basis Had access and were immediately forthcoming with information 5

6. Why LCCEs are important to IPTs 6

7. LCCE Process Followed accepted LCCE process using 3-tiered deliverable format Kickoff and Data Collection meetings typically leverage technology (Web Meetings) and require minimal effort Documented Ground Rules & Assumptions early in process, which augmented process �buy-in� Delivered Interim and Final estimate briefings to client key decision-maker 7

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9. LCCE Overview LCCE Management Viewed issues from PMO management perspective Focused IPT on analysis schedule to deliver data Gained program manager buy-in through education on process, expectations, keys to success. Gained PM confidence in analytics through demonstration of process and Truplanning � Tool Parametric models serve as �learning tools� for clients, which are easier to comprehend than complex Bottom�s-Up techniques Data Collection Emphasized technical baseline Extensively used interviews in conjunction with data calls thereby speeding data delivery Leveraged PMO contractors with understanding of PMO requirements, background and politics 9 As a result�PM elevated priority of LCCE and delivery of data As a result�PM elevated priority of LCCE and delivery of data

10. LCCE Overview(Cont.) Analysis Developed requirements based-software size estimate (function-point analysis) Well-suited for transactional based-systems Eliminates dependence on vendor SLOC quotes Allowed for eventual cost trade-offs Required Functional Requirements Document Utilized TruePlanning� with trained and experienced software estimators Quality Extensive quality review process 10

11. Keys to Success Utilize a Repeatable process Use models and techniques that can be explained to Project Managers and allow for what-if drills Create relationships with PMO that ease data collection and communication Explain LCCE strengths and weaknesses to PMO Point out to sponsor advantages of estimator independence from day-to-day IPT operations Follow best-practices and inject quality control in estimation process 11

12. Cost Estimation Best Practices Utilize two estimators on analysis team Have Strong understanding of program and architecture Require client senior management during data call process Frequently Read-back assumptions to client Size software based on documented User Requirements Utilize crosschecks Utilize calibrated commercial parametric models Conduct peer reviews Deliver �Stand-alone� Documentation 12

13. Cost Estimation Best Practices (cont.) The GAO Cost Assessment Guide specifically addresses best practices with the use of commercial software models. Calibrate to the user�s environment Provide extensive training Develop formal estimation procedures Provide frequent updates to the models Our team adheres to all of the commercial software model usage best practices. 13

14. Comparison to SEI Checklist Source: SEI Checklist, A Manager�s Checklist for Validating Software Cost and Schedule Estimates 14

15. Overall Project Results LCCE delivered on-time and within budget LCCE successfully accepted by ICE, considered estimate of record, and received department approval IPT Workload Eased Additional ICE estimation support requested following completion of RAMP LCCE 15

16. Conclusions Models and processes do not take the place of due diligence Sponsors may not trust costs models (parametric or spreadsheet-based) that are produced by PMO Following documented best practices gains buy-in from sponsors Teaming Parametric OEMs, Independent cost estimators, and PMO support contractors allows for efficient delivery of cost estimation deliverables OEMs provide access and institutional knowledge of their models PMOs do not need to maintain cost estimation �standing army� 16

17. Contact Information 17