ITS Procurement Workshop Module 2: ITS Procurement Characteristics and Challenges.
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Transcript of ITS Procurement Workshop Module 2: ITS Procurement Characteristics and Challenges.
![Page 1: ITS Procurement Workshop Module 2: ITS Procurement Characteristics and Challenges.](https://reader035.fdocuments.in/reader035/viewer/2022062719/56649ec95503460f94bd65c1/html5/thumbnails/1.jpg)
ITS Procurement Workshop
ITS Procurement Workshop
Module 2: ITS Procurement Characteristics and Challenges
![Page 2: ITS Procurement Workshop Module 2: ITS Procurement Characteristics and Challenges.](https://reader035.fdocuments.in/reader035/viewer/2022062719/56649ec95503460f94bd65c1/html5/thumbnails/2.jpg)
ITS Procurement Workshop
Horror Stories
• “Burying the Software Contractor”• “A Risky Proposition”
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ITS Procurement Workshop
“Burying the Software Contractor”
• VDOT disaster – project folded• WSDOT – one year late, $$$$ lost
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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.
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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.
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ITS Procurement Workshop
Workshop Terminology
• Acquisition• Procurement• Work Structure• Method of Award• Contract Type
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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.
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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.
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ITS Procurement Workshop
Workshop Terminology
• Contract Type – How the contractor is paid.
• Fixed Price, Cost Reimbursement, Incentive
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ITS Procurement Workshop
Federal Contract Terminology
• “… the supervising, inspecting, actual building, and all expenses incidental to the construction or reconstruction of a highway...”
Construction
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ITS Procurement Workshop
Engineering and Design Services
• “planning, preparation of detailed design, specifications, and cost estimates”
Federal Contract Terminology
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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
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ITS Procurement Workshop
• “Special Experimental Project 14” - encourages and solicits innovative procurement and project delivery practices of all types
SEP 14
Federal Contract Terminology
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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
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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
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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
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ITS Procurement Workshop
Lessons Learned
• ITS is different from traditional projects.
• Different nature implies a different approach to:– project management– procurement
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ITS Procurement Workshop
Exercise 2
If Architects Had to Work like Programmers
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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?
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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?
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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?
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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.
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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?
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ITS Procurement Workshop
Virginia DOT-Video
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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
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ITS Procurement Workshop
Break - 15 Minutes