Baltic PM Days 2014 - Agile in Public Procurement Projects
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This document discusses using agile methods for public procurement projects in Lithuania. It outlines some typical challenges with traditional public procurement, including low efficiency and legal focus on process over outcomes. The document then proposes some ways agile could help, such as defining requirements iteratively and stopping work when enough value is delivered. It acknowledges agile is not easy in this context but still possible. It provides examples of how agile could be applied legally in Lithuania through a project-as-product approach, using standard methodologies like PRINCE2 combined with Scrum, and changing procurement practices to select suppliers based on outcomes rather than upfront requirements. The document concludes by outlining next steps such as guidelines, education, and potential legal updates.
Baltic PM Days 2014 - Agile in Public Procurement Projects
- 1. Agile in Public Procurement Projects Aleksej Kovaliov, TEO LT, Agile Lietuva The impossible is often the untried (Jim Goodwin)
- 2. Me • Aleksej Kovaliov • aleksej.kovaliov @ gmail.com • https://www.linkedin.com/in/aleksejkovaliov • http://www.slideshare.net/akovaliov • http://www.bdcinstitutas.lt/autorius/23 • http://akovalyov.wordpress.com/
- 3. What first comes to you mind when you hear…. Some stereotypes. Any resemblance to real persons, projects and organizations, living or dead, is purely coincidental
- 4. …Public Procurement • Low Efficiency and High Waste • Legalized Over-complication • Fierce Competition • Claims & Lawsuits • Corruption DEREK HUETHER Zombie procurement
- 5. …Public IT Projects • High CAPEX • Fixed price & Fixed scope & Fixed deadlines • Unqualified Customer • Requirements Over Goals • Undefined Complexities • Overdefined Simplicities • Outdated Architectures • Poor Usability • “SaaPA” – Software as a Political Asset • Big Boys’ Club • Redundancies DEREK HUETHER Zombie procurement
- 6. Infinitely Long Requirements Lifecycles EU / Government Program Feasibility study Technical specification Procurement specification Tender Contract Analysis 1-3 years 0,5 year 0,5-1,5 year implementation
- 7. Barriers for Improvements • Legal Focus on HOW do organizations buy • Not WHAT do they buy • Lack of the Championship for Change • Disperse ownership among ministries • Top-to-bottom Command and Control • Lack of Economic Motivation for Change • EU Financing models • Buyers Not Interested • Sellers Not Interested
- 8. How Can Agile Help? • No Need To Define The Indefinite • Faster Study to Project Lifecycle • Faster and Usable GO LIVE • Quota for Intermediate Mistakes • Requirements Aligned To Reality • Stop When It’s Enough • Suppliers’ Risk Management • Innovation Enablement http://blog.projectassistants.com/tag/agile-methodology/
- 9. Not Easy, but Still Possible to be Agile http://mathtourist.blogspot.com/2011/05/riding-on-square-wheels.html
- 11. Public IT Procurement in 2013 • IT Services etc. • 298,2M LTL = 86,3M EUR • 447 purchases • Software and Information Systems • 102,1M LTL = 29,6M EUR • 225 purchases http://www.vpt.lt/vpt/uploaded/2014/vp/Informacija%20apie%202013%20m.%20viesuosius%20pirkimus.pdf
- 12. Legal Background • Law on Public Procurement • Law on Information Assets • Information Systems Lifecycle Methodology (AGILE included!) • Ministry of Justice • Ministry of Transport and Communications • Ministry of Interior • Information Society Development Committee • Ministry of Transport and Communications • Public Procurement Office • Ministry of Economy • Focus on Transparency & Control
- 13. Agile Under Cover … - 2014 • Not Forbidden, Not Welcomed • Mandatory External Waterfall 99% • Rare Agile at Home • Unofficial Intermediate Reviews and Product Owners • Agile Lietuva Association, www.agile.lt • Agile Alliance • Scrum Alliance • Agile Lean Europe Network
- 14. Legally Agile 2014 - …. • Information Systems Lifecycle Methodology • Appendix#1: Implementation Approaches #3: Iterative-incremental • Appendix#2: Recommendations Scope Detail requirements Waterfall Modular Iterative- incremental Big Defined X X Undefined X X Small Defined X Undefined X
- 15. Digital by Default Service Standard
- 16. Government Service Design Manual
- 17. But How Would It Work? http://www.condenaststore.com/-sp/Great-but-how-is-he-in-bed-New-Yorker-Cartoon-Prints_i8541755_.htm
- 18. Ken Schwaber says… Scrum’s principle is “the art of the possible,” not “you give me what I paid for, when you said that you’d deliver it.” http://www.incrementor.com/agilenyc/past-events/2010-2/110310-ken-schwaber/ Agile Project Management with Scrum by Ken Schwaber Microsoft Press © 2004
- 19. Agile Waterfalls
- 20. Typical Milestones in Public IT Project
- 21. Approach1: Agile Under Cover
- 22. Approach2: Project-as-a-Product + • Plan as a Product to Market • Strategic Roadmap • Beta Milestones • Go Live Milestones • Draw a Poster! • PjM Formalities is a just a Package • Filter Real Goals and Priorities • Slice the Scope • Cut the Redundancies
- 23. Map BETAs to Waterfall Milestones
- 24. Product Release Plan / Roadmap (example) Prioritized Features Alpha1 Alpha2 Alpha3 Alpha4 Alpha5 Alpha6 Data exchange module Beta1 Documents and tasks module Beta1 Execution module Beta1 Control module Beta1 Operator module Beta1 User provisioning module Beta1 Bendrųjų klasifikatorių posistemis Beta1 Utilities modules Beta1 Documentation IT Platform “Product” is growing with every release The same features are being improved with every release Backlog is filled in with scenarios
- 25. Split BETAs to Agile Sprints for Each Milestone 1 2 3 4 5 6 Internalin DEV Environment Externalin DEV Environment Alpha6XAlpha2X Alpha4X Alpha4Alpha1 Alpha2 Alpha3 Alpha6Alpha5 Externalin PROD Environment BETA1 BETA 1 Candidate
- 26. Approach3: Standard Methodologies • PRINCE2 – Management and Control • Business Justification • Stakeholder Engagement • Management Control and Direction • Manage by Stages • Manage by Exception • Agile DSDM (Atern) – Delivery and Development • Focus on Business Needs • Deliver on Time • Collaborate • Build Incrementally from Firm Foundations • Develop Iteratively • Demonstrate Control
- 27. Whitebook: PRINCE2 combined with Scrum Waterfall PRINCE2 is Agile
- 28. Controlling a Stage, Managing a Stage Boundary, Directing a Project Managing Product Delivery http://www.slideshare.net/apmg-inter/prince2-agile-management-delivery-apmginternational-webinar
- 30. Fundamental Changes • In the Way Suppliers are Selected and Contracted • Selecting a Supplier and not a solution • Thinking Business Outcomes rather than Detailed Requirements • Goals over Requirements • Public Procurement Regulations • From Transparent to Transparent + Efficient
- 31. Agile Contracts <> Risky Contracts Risk Customer In-house Team Outcome Based Contract for Supplier Waterfall Approach Agile Apporach http://www.westminster-briefing.com/fileadmin/westminster-briefing/pastevents/IPL.pdf T&M T&M Risk Reward Fixed Price Fixed Price For Fixed Effort Volume-based: Fixed Price for committed + Velocity/Price for additional
- 32. More Agile Contracts Types • Contracting to Support Modular Development • http://www.whitehouse.gov , 2012, June • Indefinite delivery / quantity contracts • Single contract with options • Successive contracts • Performance-based Work Statements • Fixed-price contracts and task orders • Cost-reimbursement contracts • Time-and-materials contracts • Incentive contracts • Hybrid contracts
- 33. What Next?
- 34. Roadmap Past • Start Using Agile in Public IT Projects • Update LT Public IS Development Methodology 2014 • Recommendations and Guidelines • Educating the Institutions and Suppliers 2014+ • Feasibility Study of the Agile Public Procurement model for LT ??? • Update LT Law on Public Procurement • Update LT Law on Public Information Resources