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Guide Organization Many factors must be considered when you are tasked with identifying an appropriate pro- curement process for an ITS acquisition. A Decision Model has been developed for this guide to aid in this activity. The Decision Model is rooted in the relationship among the four dimensions of procurement (work distribution, method of award, contract form, and contract type) along with the systems and systems engineering concepts they support. This guide is organized based on the Decision Model presented in Figure 1. START Use outsourcing process (procurement Other services package 6 or 7) Step 1 being procured. Initial Not covered by Use consulting Decisions this Model. process (procurement package 5) Step 2 Send individual Yes projects through Work Distribution the Decision Model. No Step 3 Step 4 Define Project Determine Category(ies) Agency Capability Level Step 5 Select applicable systems engineering process(es) & candidate procurement package(s) Step 6 Apply Differentiators Schedule Constraints Step 7 Package Assessment and Final Selections Step 8 Define Contract Scope and Terms & Conditions END Figure 1. Decision model. 3

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4 Guide to Contracting ITS Projects The Decision Model includes eight steps that must be performed to complete the process of defining the most appropriate procurement approach for your project: Step 1--Make Initial Decisions: Step 1 will aid you in making fundamental procurement decisions that will ultimately affect the overall procurement strategy. These fundamental deci- sions consider the possibility of outsourcing and the procurement of consultant services. This step also directs you to skip to Step 7 of the Decision Model if either outsourcing or consult- ant services are used. Step 2--Determine Work Distribution: Step 2 will help you determine whether the procure- ment should be performed as a single contract or multiple contracts. Step 3--Define Project Category: Step 3 will help you categorize your project with respect to complexity and risk. Understanding project complexity and risks is critical to determining an appropriate procurement package. Step 4--Determine Agency Capability Level: Step 4 will assist you in assessing your agency's resources and capabilities as well as the environment in which your project will be procured. Step 5--Select Applicable Systems Engineering Process and Candidate Procurement Pack- age: Step 5 uses the results of Steps 3 and 4 to select applicable systems engineering processes and candidate procurement packages. Step 6--Apply Differentiators: Step 6 applies differentiators to the candidate procurement packages to help you reduce the number of procurement packages identified in Step 5. Step 7--Assess Package and Make Final Selection: This step suggests the involvement of agency procurement personnel to assist in making the final selection of the most appropriate procurement package. Step 8--Define Contract Scope and Terms and Conditions: The final step will assist you with the selection of the necessary terms and conditions to be included in the contract. Each step is explained in the corresponding section of the guide. The Decision Model graphic is used throughout the guide to highlight your progress. To emphasize pertinent information, tips, notes, key points, references, and innovative con- cepts are highlighted throughout the guide. The following icons will be used to alert you to per- tinent information. The tip icon is used to alert the reader to lessons that guide authors and contributors have learned through experience in the procurement of ITS. The note icon is used to explain to the reader, in greater detail, concepts that are put forth throughout the guide. The key point icon is used to alert readers to points critical to the successful procurement of ITS. The reference icon is used to inform readers of additional references that provide further explanation of a specific topic discussed in the guide. The innovative concept icon is used to alert readers to novel strategies and practices used to procure ITS.