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6 Guide to Contracting ITS Projects Project Planning Stakeholders & Management Yes Establishing Budget and Consider COTS Start project Schedule OK and Outsourcing feasibility No Procurement Planning Prepare Statement of Work * Execute Decision Prepare RFP and Prepare Prepare WBS Process including Execute Selection for contracting Contract Terms and Procurement Plan Criteria process Conditions Prepare operations & maintenance plan Management Contracts Legal Procurement Completed * May also include plans and specifications as required by the selected contracting alternative Figure 2. The planning process COTS versus Custom System Development Frequently, the system that your stakeholders defined while establishing project feasibility has been developed and procured by another agency. This reality results in a favorable scenario for you. ITS that have been previously installed are considered COTS systems. If at all possible, you should contact peer agencies to acquire lessons learned from their experience procuring the sys- tem that your agency is interested in procuring. Additional benefits accrue with procuring COTS You should look for opportunities systems: to use COTS products wherever possible. It may be that minor · The system has been previously tested. adjustments to the concept of · The cost for system upgrades can be shared with other agencies. operations will permit this · The system can be viewed in operation before system procurement. approach. In contrast, your project stakeholders may define a system that has not previously been installed--a custom system development. In some cases, it may be best to procure a hybrid sys- tem that includes both COTS and custom components. Outsourcing Outsourcing is the process by which organizations (public or private) use external providers to manage or maintain certain aspects of their businesses. While establishing project feasibility, stake- holders may realize that the group does not have the personnel (skills or resources) to design, procure, deploy, operate and/or maintain the defined system. In this case, outsourcing may be prudent.