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The Decision Model 15 Step 2--Determine Work Distribution START Use You've determined that you are moving forward with the steps required for identifying an outsourc- ing appropriate procurement package for your systems development project. You've already done a process (procure- significant amount of work to get to this point, and the Decision Model process will guide you ment package the rest of the way. 6 or 7) The second step in the Decision Model determines whether the procurement should be per- STEP 1 INITIAL DECISIONS formed as a single contract or multiple contracts. Step 2 occurs early in the process to enable each Use Other specific contract resulting from this step to go through the Decision Model process and to be exe- consulting services process being cuted using a contracting process and associated procurement package that best addresses the (procure- procured. ment Not nature of work to be performed. For example, one contract may include the central system (in- package covered 5) cluding software) implementation, while another contract may consist of only field equipment by this Model. Remember ... installations. Many ITS procurements involve multiple contractors who have been selected using NOT all work STEP 2 has to be done Yes different procurement packages. WORK under a single DISTRIBUTION project and Thus, this step of the Decision Model distributes the total work associated with a project to associated contract. Send individual multiple subprojects and their related contracts. It may very well be that only a single contract is The goal is to apply the best procurement projects through required for the entire project. However, even if all of the project work can be performed by a package based on the the nature of work to be Decision single contractor (i.e., none of the reasons listed below apply), there may be a need for support- performed. Model. ing contractors who might be performing such tasks as general advisory support, site inspection, No systems design, website design, or IV&V of the contractor's work. The reasons to distribute work to multiple contracts as opposed to performing all work under a single contract may include the STEP 4 STEP 3 following: DEFINE PROJECT CATEGORY(IES) DETERMINE AGENCY CAPABILITY LEVEL Although a significant amount of software and systems development is needed, the largest dol- lar amount is in construction (i.e., the systems contractor will not be prime unless separate STEP 5 SELECT APPLICABLE contracts are issued for the systems contractor and the construction contractor). SYSTEMS ENGINEERING The likelihood of selecting a satisfactory prime contractor for the overall project is uncertain PROCESS(ES) & CANDIDATE (i.e., not putting all of "one's eggs in the same basket" would be prudent). PROCUREMENT PACKAGE(S) "Politics" require the work to be spread around (which might be particularly true if the proj- ect involves a significant amount of field construction). STEP 6 APPLY Unless there are compelling reasons to do otherwise, software development and systems inte- DIFFERENTIATORS Schedule gration work should be performed by the prime contractor, to ensure a single point of respon- Constraints sibility and to minimize the complexities of managing the development environment. STEP 7 PACKAGE ASSESSMENT AND FINAL SELECTIONS STEP 8 DEFINE CONTRACT SCOPE AND TERMS & CONDITIONS END