what executives need to know about software acquisitions its professional capacity building program...

What Executives Need to Know

About Software Acquisitions

ITS Professional Capacity Building Program

T3 Session

July 12, 20061:00 p.m. EDT

ITS PCB T3 Executives and Software Acquisition 2

TODAY’S PRESENTERS

Your Instructor:

Art SalwinMitretek Systems

Your Host:

Mac ListerFHWA Resource Center

Software HorrorsSoftware HorrorsSoftware HorrorsSoftware Horrors


TMC #1

2-yr project lasted 5 yrs

delivered 1/2 the functionality

Accident Reporting System

2-year schedule canceled after 6 years and

$2M, 2 contractorsSoftware Glitches Delay

Delivery of Metro Rail CarsWashington Post, May 19, 2001

TMC #2

2-yr project canceled after 4½ yrs

delivered 70%


Denver Airport openingdelayed 16 months

by baggage software2-year DMV project cancelled

after 5 years; $44 million

20 deaths attributed toCAD software outage


Software = Trouble

OK

Late, Over Budget, Incomplete Canceled

Statistics from the Standish Group

Software is Different!


Software development is a

non-linear, iterative process

Learn as you goFundamental flaw of software engineering: assuming that “one can specify a satisfactory system in advance, get bids for its construction, have it built, and install it … this assumption is fundamentally wrong.”

— Brooks, 1987




The bad news is…

Softwareis

Different

Classic Approaches

Don’t Work

Need Different

Approaches



The good news is…

Contracting

Maintenance

Staffing


What You Can Do To HelpWhat You Can Do To Help


How You Can Help

1. Provide adequate resources


1. Provide Adequate Resources

Provide Adequate Staffing

Assign a full-timefull-time project manager


1. Provide Adequate ResourcesStaffing Options

• Hire in-house staff

Contract employees

University support V&V contractor

Project manager contractor


1. Provide Adequate ResourcesOther Essential Resources

Non-core team members

Staff training

Contractor resources for management support

Facilities

Software maintenance


How You Can Help

1. Provide adequate resources2. Foster teaming


How You Can Help 2. Foster Teaming

Within your agency

With other agencies

With neighboring jurisdictions


Make people available

Coordinate with other agenciesand jurisdictions

DO

2. Foster Teaming


2. Foster Teaming Non-Core Team Members

Legal staff Intellectual Property Rights

issues

Contracting Contract vehicles

End users Prototyping

Other agencies Coordination & jurisdictions

FHWA Facilitation

Public relations Public interface

Member Role


Foster teaming with the software contractor…

… even if it’s a subcontractor

DO

2. Foster Teaming


How You Can Help

1. Provide adequate resources2. Foster teaming3. See if you can buy instead of build


… If You Can Buy

3. Buy Instead of Build

Don’t Build ...


3. Buy Instead of BuildPotential Advantages

of Buying The Software

• Lower risk• Shortened schedule• Reduced costs• Enhanced quality• Stay current with

technology


3. Buy Instead of BuildBuying Software Requires

Flexibility

You may not get everything you want

80% may be good enough!

You may even have to change some operational procedures


Make sure the buy option is explicitly considered

Provide the needed flexibility

DO

3. Buy Instead of Build


How You Can Help

1. Provide adequate resources2. Foster teaming3. See if you can buy instead of

build4. Break the project into pieces


Project

Software

Construction

4. Break the Project into Pieces


4. Break the Project into Pieces Examples of Bite-Size

Pieces

• Functions• Geographic scope• Interfaces• Number of devices• Operational positions


4. Break the Project into Pieces Take Bite-Size Pieces

• Gain benefits and operational experience sooner

ErrorsCost

ComplexityPersonnel Turnover

Chance of Cancellation

Size

• Fewer headaches

• Tangible progress builds political support


Break the software development product into

pieces

Separate software from construction

DO

4. Break the Project into Pieces


How You Can Help


build

4. Break the project into pieces5. Pick the right contract


`

MemorandumU.S. Departmentof Transportation

Federal HighwayAdministration

We continue to hear many comments from both the public and private sectors on the difficulty in procuring ITS projects under Federal-aid procedures. These comments, and the recent article “Death by Low Bid” (attachment 1), are the direct result of the perception that ITS projects must always use the same procurement approach

Often, ITS work is included within a larger construction project. Experience has shown that this may be inadvisable, and that the ITS work may be better accomplished

Many stand-alone ITS projects do not have to be procured under the rules for construction projects, since they do not meet the FHWA definition of construction. If field

devices or communications infrastructure is being development of software to integrate does not meet the definition of construction. Software should never be procured using the “normal” low bid process, rather it should be treated as engineering or design services to be provided only by qualified and experienced

Another option available is the use of a State or local agency’s own procurement process, which is permitted uder 49 CFR 18. While some states have procurement

Reference: Action: Procuring ITS Projects, FHWA Memo from Anthony R. Kane, Executive Director, dated October 6, 1999.[emphasis and color added]

Software

5. Pick the Right Contract


Multi-Phase

Design/BuildD/B/O/M

Task Order

T&M Indefinite Quantities

Design Competition Non-Professional Services Cost-Plus



Use low bid for software

Put final requirements in contract

Use engineer/contractor(two-step) process

DON’T


DON’T

DON’T


Use flexible contractingUse an incremental approach

Call out software activities and productsGain full access to subcontractor(s)Separate software from construction

DO



How You Can Help


build4. Break the project into pieces5. Pick the right contract6. Pick the right contractor


DO

Use software-related source selection criteria

Select contractor with strong software capabilities

Describe how you will control software requirements growth and volatility.Describe how you will trace requirements to …How did you estimate the software cost and size?How will you identify defects in the …Describe how you track defects.How will you track interfaces?Describe task exit criteria and how you ensure they are satisfied.How do you train staff on your procedures and ensure they will follow them?

Reference: The Guidebook of Software Acquisition Questions, Software Program Managers Network, www.spmn.com

6. Pick the Right Contractor


Level 1InitialInitial

Level 2Level 2RepeatableRepeatable

Software Capability Maturity Model (SW-CMM)

Continuous ProcessImprovement

LevelLevel Key Process AreasKey Process AreasFocusFocus

5Optimizing

Product andProcess Quality

4Managed

EngineeringProcess

3Defined

ProjectManagement

2Repeatable

Competent People and Heroics

1

Initial

Level 3DefinedDefined

Level 4ManagedManaged

Level 5Level 5OptimizingOptimizing

• Software Project Planning• Software Project Tracking and Oversight• Software Subcontract Management• Software Quality Assurance• Software Configuration Management• Requirements Management

• Software Process Definition• Organization Process Focus• Peer Reviews • Training Program• Intergroup Coordination• Software Product Engineering• Integrated Software Management

• Process Measurement and Analysis• Quality Management

• Defect Prevention• Technology Innovation• Process Change Management

6. Pick the right contractor


How You Can Help


build4. Break the project into pieces5. Pick the right contract6. Pick the right contractor7. Resist schedule pressure


7. Resist Schedule Pressure#1 Cause of Failure =Excessive Schedule

Pressure

Software Task Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Task 1 PlannedTask 1 Actual




7. Resist Schedule Pressure#1 Cause of Failure =

Excessive Schedule Pressure

Time Allowed on Schedule

$

Software Task Month 1 Month 2 Month 3 Month 4 Month 5 Month 6




Quality

Imp

ossib

le Z

on

e


Dictate schedules

Play catch up

DON’T

7. Resist Schedule Pressure

DON’T


Set technically-based schedulesBuild planning and reviews into

the scheduleRevise schedule with project

Relax or eliminate requirements

DO

7. Resist Schedule Pressure


How You Can Help


build4. Break the project into pieces5. Pick the right contract6. Pick the right contractor7. Resist schedule pressure8. Emphasize quality


$Software Task Month 1 Month 2 Month 3 Month 4 Month 5 Month 6




8. Emphasize Quality


8. Emphasize Quality Cost to Fix a Problem

“Measure twice, cut once.”

Time

$Requirements

$Design

$Integration

$Operations

“Design twice, code once.”


You Can’t Test-In Quality

“Testing shows the presence, not the absence, of bugs.”

The bad news is…



8. Emphasize Quality Build in Quality From

the Start

The good news is…

•Inspections•Walk-throughs

•Reviews•Defect tracking

•Completion criteria

•SQA•V&V•Cleanroom•ExtremeProgramming

•PSP•TSP


8. Emphasize Quality Quality-Related

QuestionsBefore Contract Award

• How do you find defects…– in requirements?– in architecture?– in design?– in code?

• How do you track defects?• What tools do you use?• Describe your software QA organization,

processes, and products.


8. Emphasize Quality Quality-Related Questions After Contract Award

• How many defects – have been found?– have been removed?– remain?

• At historical defect removal rates, how long will it take to achieve acceptable quality?


Rely only on testingto ensure quality

DON’T



Encourage use of softwarequality assurance techniques

Ask quality-related questions

Allow sufficient time for planning and requirements development

Test

DO



Ignore schedule & budget

DON’T



SummarySummary


• Contractor at risk• Hold contractor’s

feet to the fire• Full functionality

• Known results• Familiar contract

mechanisms

• Budget & schedule pressure

• Shared risk• Teaming & open

communication• 80% is good

enough

• Learn as you go• Unfamiliar

contract mechanisms

• Emphasize quality along with budget & schedule

The Better Road to Software Acquisition


Recap8 Things You Can Do To

Help1. Provide adequate resources2. Foster teaming3. See if you can buy instead of build4. Break the project into pieces5. Pick the right contract6. Pick the right contractor7. Resist schedule pressure8. Emphasize quality


Additional Resources

•Courses–NHI: www.nhi.fhwa.dot.gov

•ITS Software Acquisition #137019

•Intelligent Transportation System (ITS) Procurement #137020

–CITE: www.citeconsortium.org•Managing High-Technology Projects in Transportation


Additional Resources (cont’d.)

• Reference Materials– The Road to Successful ITS Software

AcquisitionEDL documents 4130, 4131, 4132 at http://www.its.dot.gov/library.htm USDOT Publications FHWA-JPO-98-035, -036, and -037

– ITS Software: Effective Acquisition PracticesAASHTO Publications at (800) 231-3475

– Guide to Software Acquisition Best PracticesSoftware Program Managers Network

www.spmn.com


Additional Help (cont’d.)

• The ITS Peer-to-Peer Program (888) 700-7337 [email protected] http://www.pcb.its.dot.gov/p2p_2.asp


Contact Information

Mac Lister

Art [email protected]

[email protected]

what executives need to know about software acquisitions its professional capacity building program...

Documents

adequate resources2

piecesseparate software

software contractor

buildbuying software

adequate resources1

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