2b-modularization.html

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      <h1 class="title-du4xMo title titlepage">Process code for software procurement</h1>
      <div class="main-frame-du4xMo">
        <div class="content-cz1OXE content">
          <div class="intro-XySe0b">
            <div class="titlepage-sfQryJ"><div class="page-title-FOL3iO titlepage">2b. Modularization</div></div>
            <div class="content-sfQryJ content">
              <p class="this-section-will-help-you-Sirc8L mulish-bold-black-16px">This section will help you:</p>
              <div class="cluster-Sirc8L cluster">
                <article class="goal">
                  <img class="icongoal-L76VSg icongoal" src="img/icon-goal-24@2x.png" alt="icon.goal" />
                  <p class="this-is-a-goal-for-a-particular-activity detail">
                    Turn the problem statement into an outline for possible solutions, framed as individual modules
                  </p>
                </article>
                <article class="goal">
                  <img class="icongoal-eWpiVU icongoal" src="img/icon-goal-24@2x.png" alt="icon.goal" />
                  <p class="this-is-a-goal-for-a-particular-activity detail">
                    Use modular budgeting to support Agile development, encourage creative solutioning and remain in
                    control of cost and quality
                  </p>
                </article>
              </div>
            </div>
          </div>
          <div class="challenges-XySe0b">
            <div class="titlesubsection"><div class="subsection-title titlesection">Common challenges</div></div>
            <div class="cluster-LxdnZE cluster">
              <p class="you-may-encounter-th-3H9OSQ body">
                <span class="span0-XlnxiY body"
                  >You may encounter these frictions as you do the work of modularization. These are challenges the </span
                ><span class="span1-XlnxiY bodylink">Recommended actions</span
                ><span class="span2-XlnxiY body">
                  are designed to solve, or that may arise as you take those actions.
                </span>
              </p>
              <div class="challenge">
                <img class="iconchallenge" src="img/icon-challenge-25@2x.png" alt="icon.challenge" />
                <div class="content-SoWaAr content">
                  <div class="title-UJkt7i title mulish-bold-black-16px">Monolithic contracts</div>
                  <p class="lorem-ipsum detail">
                    Contracts for long-term waterfall-style software development are risky. Requirements change and good
                    ideas emerge over the course of a project, but firm-fixed-price contracts lock you into buying what
                    you scoped up front.
                  </p>
                </div>
              </div>
              <div class="challenge">
                <img class="iconchallenge" src="img/icon-challenge-25@2x.png" alt="icon.challenge" />
                <div class="content-CvyBx0 content">
                  <div class="title-exXqLC title mulish-bold-black-16px">Bid splitting</div>
                  <p class="lorem-ipsum detail">
                    Modularization is a fundamental premise in contemporary software development—it’s how agile works.
                    However, modularization can look a lot like bid splitting—which is a classic example of procurement
                    fraud.
                  </p>
                </div>
              </div>
            </div>
          </div>
          <div class="actions-XySe0b">
            <div class="titlesubsection"><div class="subsection-title titlesection">Recommended actions</div></div>
            <div class="cluster-hUw8gC cluster">
              <p class="x1-conducting-an-init-xxziWt titlesubsection">
                1. Conducting an initial “design studio” workshop
              </p>
              <p class="writing-an-rfp-is-ab-xxziWt body">
                Writing an RFP is about outlining a space for possible solutions to the problem statement. That requires
                some creativity! Spend some time going through an open-ended design studio.
              </p>
              <div class="action">
                <div class="iconknowledge">
                  <div class="bulb">
                    <img class="union" src="img/union@2x.png" alt="Union" />
                    <img class="group-194" src="img/group-194@2x.png" alt="Group 194" />
                    <img class="line-48" src="img/line-48@2x.png" alt="Line 48" />
                  </div>
                </div>
                <div class="content-FlBfbi content">
                  <p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
                    Use the problem statement as your guide
                  </p>
                  <p class="lorem-ipsum detail">
                    What are the outcomes you hope this solution will generate? Don’t focus on the solution itself,
                    focus on what the user will be able to do, and how their workflow will be improved.
                  </p>
                </div>
              </div>
              <div class="action">
                <img class="iconaction" src="img/icon-action@2x.png" alt="icon.action" />
                <div class="content-90pTGo content">
                  <p class="an-action-that-requires-high-engagement mulish-bold-black-16px-2">
                    Create a rough map of individual elements of the solution space
                  </p>
                  <p class="lorem-ipsum detail">
                    Tightly scope each module. Each should be able to stand on its own, and also interface with other
                    components.
                  </p>
                </div>
              </div>
            </div>
            <div class="cluster-lfuBVi cluster">
              <div class="x2-modular-budgeting-XTFOq1 titlesubsection">2. Modular Budgeting</div>
              <div class="flex-container-1884529-XTFOq1">
                <div class="text0-1884529-72J845 body">
                  <span class="span0-HxmGAN body"
                    >In a contemporary Agile DevOps approach, planning, building, integrating and evaluating happen
                    continuously. Discrete components (modules) are continuously developed and deployed.<br
                  /></span>
                </div>
                <div class="text1-1884529-72J845 body">
                  <span class="span1-PIse6B body"
                    >Your RFP must reflect this modular approach. Do this by writing the RFP for the full project
                    (resulting in an umbrella contract), allowing the details about each module (goals, evaluation
                    criteria, timeline, budget) to be specified and contracted during development. That means each
                    module will be scoped, contracted, and evaluated separately.</span
                  >
                </div>
              </div>
              <div class="action">
                <div class="iconknowledge">
                  <div class="bulb">
                    <img class="union" src="img/union@2x.png" alt="Union" />
                    <img class="group-194" src="img/group-194@2x.png" alt="Group 194" />
                    <img class="line-48" src="img/line-48@2x.png" alt="Line 48" />
                  </div>
                </div>
                <div class="content-JYoTEY content">
                  <p class="a-knowledge-acquisit mulish-bold-black-16px">
                    The vendor should provide a working demonstration at the end of each development sprint
                  </p>
                  <p class="lorem-ipsum detail">
                    That means the module will be deployed into the city’s technical and operational environment, giving
                    you and the end users a chance to rigorously evaluate the work. If a vendor is under-performing, you
                    can transition to another vendor quickly and easily.
                  </p>
                </div>
              </div>
              <div class="action">
                <div class="iconknowledge">
                  <div class="bulb">
                    <img class="union" src="img/union@2x.png" alt="Union" />
                    <img class="group-194" src="img/group-194@2x.png" alt="Group 194" />
                    <img class="line-48" src="img/line-48@2x.png" alt="Line 48" />
                  </div>
                </div>
                <div class="content-MP5boy content">
                  <p class="a-knowledge-acquisit mulish-bold-black-16px-2">
                    Consider that individual pieces might use different development strategies
                  </p>
                  <p class="lorem-ipsum detail">For instance, some may be OSS, others may be contracted.</p>
                </div>
              </div>
              <div class="action">
                <img class="iconaction" src="img/icon-action@2x.png" alt="icon.action" />
                <div class="content-yuV6Up content">
                  <p class="an-action-that-requires-high-engagement mulish-bold-black-16px-2">
                    Establish an overarching plan for the software
                  </p>
                  <div class="lorem-ipsum detail">Include an overall budget.</div>
                </div>
              </div>
              <div class="action">
                <img class="iconaction" src="img/icon-action@2x.png" alt="icon.action" />
                <div class="content-cTbxar content">
                  <p class="an-action-that-requires-high-engagement mulish-bold-black-16px-2">
                    Create a rough budget for each module
                  </p>
                  <p class="lorem-ipsum detail">
                    This should be based on its complexity (measured as engineers’ time). it will require working
                    technical knowledge of the standard development process, and familiarity with the project at hand.
                  </p>
                </div>
              </div>
              <div class="guidelinessolo">
                <div class="title-ZdvJhg title">
                  <img class="iconguidelines" src="img/icon-guidelines@2x.png" alt="icon.guidelines" />
                  <div class="guidelines mulish-bold-black-16px">
                    <span class="span0-IWhoCZ mulish-bold-black-16px">Why use modular budgeting?</span
                    ><span class="span1-IWhoCZ body">&nbsp;</span>
                  </div>
                  <img class="arrowdown-zxa9Uz arrowdown" src="img/arrow-down@2x.png" alt="arrow.down" />
                </div>
                <div class="flex-container-i21171282117085-ZdvJhg">
                  <div class="text0-i21171282117085-x5SdFV detail">
                    <span class="span0-f9e9yX detail"
                      >Modular budgeting is a great way to get actively involved in agile development, and maintain a
                      degree of control over the project process and outcome.<br
                    /></span>
                  </div>
                  <div class="text1-i21171282117085-x5SdFV detail">
                    <span class="span1-R09PSi titlesubsection-p">Requires you to scope and evaluate each module.</span
                    ><span class="span2-R09PSi detail">
                      You work closely with the development team to plan each sprint and evaluate the outcome once it’s
                      finished. <br
                    /></span>
                  </div>
                  <div class="text2-i21171282117085-x5SdFV detail">
                    <span class="span3-2xcSxX titlesubsection-p"
                      >Lets you control the risk that vendors under-perform.</span
                    ><span class="span4-2xcSxX detail">
                      You only pay for short sprints that produce discrete deliverables, which can stand on their own.
                      If you need to break the umbrella contract, you have the modules that have been built, and you can
                      find another vendor to carry on the project.<br
                    /></span>
                  </div>
                  <div class="text3-i21171282117085-x5SdFV detail">
                    <span class="span5-pzArJu titlesubsection-p">Reduces vendor lock-in.</span
                    ><span class="span6-pzArJu detail">
                      Vendors have less incentive to use artificial “lock-in” strategies, and focus instead on quality.
                      You are in control if there are quality issues.</span
                    >
                  </div>
                </div>
              </div>
            </div>
            <div class="cluster-Jdx1D7 cluster">
              <p class="x4-working-within-mun-DyuqZI titlesubsection">4. Working within municipal budget thresholds</p>
              <p class="consider-the-overall-DyuqZI body">
                Consider the overall budget for the umbrella contract, which includes rough budgets for each module. The
                project may not need to go out for a full RFP.
              </p>
              <div class="action">
                <div class="iconknowledge">
                  <div class="bulb">
                    <img class="union" src="img/union@2x.png" alt="Union" />
                    <img class="group-194" src="img/group-194@2x.png" alt="Group 194" />
                    <img class="line-48" src="img/line-48@2x.png" alt="Line 48" />
                  </div>
                </div>
                <div class="content-sddcjV content">
                  <p class="a-knowledge-acquisit mulish-bold-black-16px">
                    As an example, many US cities use the following thresholds:
                  </p>
                  <div class="flex-container-i239743660216984-yQu8Zo">
                    <div class="text0-i239743660216984-0rIAB7 titlesubsection-p">
                      <span class="span0-XnqPDH titlesubsection-p">Discretionary (&lt;$10k)</span
                      ><span class="span1-XnqPDH detail"> procurable through sound business practices<br /></span>
                    </div>
                    <div class="text1-i239743660216984-0rIAB7 titlesubsection-p">
                      <span class="span2-khQlzx titlesubsection-p">Contracted ($10–50k)</span
                      ><span class="span3-khQlzx detail">
                        procurable with a written quote contract or service order or sole-source<br
                      /></span>
                    </div>
                    <div class="text2-i239743660216984-0rIAB7 titlesubsection-p">
                      <span class="span4-YHSfOx titlesubsection-p">Full bid (&gt;$50k)</span
                      ><span class="span5-YHSfOx detail">
                        procurable with an Invitation for Bid (IFB) or Request for Proposals (RFP)</span
                      >
                    </div>
                  </div>
                </div>
              </div>
              <div class="action">
                <img class="iconaction" src="img/icon-action@2x.png" alt="icon.action" />
                <div class="content-Hg0UVx content">
                  <p class="an-action-that-requires-high-engagement mulish-bold-black-16px-2">
                    Based on market analysis and modularization strategy, consider your RFP’s scope
                  </p>
                  <p class="lorem-ipsum detail">
                    Should it include the full software, or is it better to start with a small, discrete module that
                    stands on its own and helps you plan the rest of the project?
                  </p>
                </div>
              </div>
              <div class="guidelinessolo">
                <div class="title-cmxXMN title">
                  <img class="iconguidelines" src="img/icon-guidelines@2x.png" alt="icon.guidelines" />
                  <p class="guidelines mulish-bold-black-16px">Be careful of “bid splitting”</p>
                  <img class="arrowdown-3fDaSR arrowdown" src="img/arrow-down@2x.png" alt="arrow.down" />
                </div>
                <div class="flex-container-i21172632117085-cmxXMN">
                  <div class="text0-i21172632117085-tOuau8 detail">
                    <span class="span0-gaIYFB detail"
                      >Modular budgeting can look a lot like bid splitting. The Association of Certified Fraud Examiners
                      defines bid splitting as “Employee splits large contracts into smaller contracts to avoid the
                      scrutiny required for larger contracts.” </span
                    ><span class="span1-gaIYFB titlesubsection-p">You can avoid this by:<br /></span>
                  </div>
                  <div class="text1-i21172632117085-tOuau8 detail">
                    <span class="span2-dWtHsF detail"
                      >Working in the open, and meeting proactively with the legal team.<br
                    /></span>
                  </div>
                  <div class="text2-i21172632117085-tOuau8 detail">
                    <span class="span3-vxenDe detail"
                      >Clarifying that each module is additive, contributing to a larger whole.<br
                    /></span>
                  </div>
                  <div class="text3-i21172632117085-tOuau8 detail">
                    <span class="span4-EXjVv6 detail"
                      >Ensuring that the contract amount is a legitimate reflection of the work involved, as opposed to
                      targeting just under a procurement threshold.<br
                    /></span>
                  </div>
                  <div class="text4-i21172632117085-tOuau8 detail">
                    <span class="span5-2DMQ9E detail">Ensuring that RFPs are competitive when needed.</span>
                  </div>
                </div>
              </div>
            </div>
          </div>
          <div class="outcomes-XySe0b">
            <div class="titlesubsection"><div class="subsection-title titlesection">Takeaways</div></div>
            <div class="cluster-CPY0Ig cluster">
              <article class="outcome">
                <div class="icongoal-OUbjqh icongoal">
                  <div class="v2">
                    <img class="gear-2" src="img/gear-2-2@2x.png" alt="gear 2" />
                    <img class="arrow-2" src="img/arrow-2@2x.png" alt="arrow 2" />
                  </div>
                </div>
                <p class="this-is-an-outcome-t mulish-bold-royal-blue-16px-2">
                  Modularized software map with success criteria
                </p>
              </article>
              <article class="outcome">
                <div class="icongoal-vEBQ2z icongoal">
                  <div class="v2">
                    <img class="gear-2" src="img/gear-2-2@2x.png" alt="gear 2" />
                    <img class="arrow-2" src="img/arrow-2@2x.png" alt="arrow 2" />
                  </div>
                </div>
                <div class="this-is-an-outcome-t mulish-bold-royal-blue-16px-2">High-level project budget</div>
              </article>
            </div>
          </div>
          <div class="references-XySe0b">
            <div class="titlesubsection"><div class="subsection-title titlesection">Further reading</div></div>
            <div class="cluster-HbVRHa cluster">
              <article class="reference">
                <div class="number"><div class="x1 body">1.</div></div>
                <div class="content-uMphzt content">
                  <div class="frame-163">
                    <p class="source-name subtext">Association of Certified Fraud Examiners</p>
                  </div>
                  <a
                    href="https://www.fraudconference.com/uploadedFiles/Fraud_Conference/Content/Course-Materials/presentations/23rd/ppt/post-06-Fraud-in-Procurement-Without-Competition.pdf"
                    target="_blank"
                    ><div class="link-title-here mulish-bold-azure-radiance-16px">Contract and Procurement Fraud</div>
                  </a>
                </div>
              </article>
              <article class="reference">
                <div class="number"><div class="x1 body">2.</div></div>
                <div class="content-oorr39 content">
                  <div class="frame-163"><div class="source-name subtext">18F</div></div>
                  <a href="https://derisking-guide.18f.gov/state-field-guide/questions-to-ask/" target="_blank"
                    ><p class="link-title-here mulish-bold-azure-radiance-16px">De-risking guide: Questions to ask</p>
                  </a>
                </div>
              </article>
              <article class="reference">
                <div class="number"><div class="x1 body">3.</div></div>
                <div class="content-e4Dxkh content">
                  <div class="frame-163"><div class="source-name subtext">18F</div></div>
                  <a href="https://github.com/18F/Modular-Contracting-And-Agile-Development" target="_blank"
                    ><p class="link-title-here mulish-bold-azure-radiance-16px">
                      Modular Contracting And Agile Development (Github)
                    </p>
                  </a>
                </div>
              </article>
              <article class="reference">
                <div class="number"><div class="x1 body">4.</div></div>
                <div class="content-PWonxB content">
                  <div class="frame-163"><div class="source-name subtext">SABR</div></div>
                  <a
                    href="https://sara-sabr.github.io/ITStrategy/2021/10/15/product-management-part-2.html"
                    target="_blank"
                    ><p class="link-title-here mulish-bold-azure-radiance-16px">
                      Implementing Product Management in the Federal Government
                    </p>
                  </a>
                </div>
              </article>
              <article class="reference">
                <div class="number"><div class="x1 body">5.</div></div>
                <div class="content-RUdlXR content">
                  <div class="frame-163"><div class="source-name subtext">18F</div></div>
                  <a
                    href="https://18f.gsa.gov/2017/11/30/improving-government-outcomes-through-an-agile-contract-format/"
                    target="_blank"
                    ><p class="link-title-here mulish-bold-azure-radiance-16px">
                      Improving government outcomes through an agile contract format
                    </p>
                  </a>
                </div>
              </article>
              <article class="reference">
                <div class="number"><div class="x1 body">6.</div></div>
                <div class="content-EJQZuX content">
                  <div class="frame-163"><div class="source-name subtext">18F</div></div>
                  <a href="https://18f.gsa.gov/2019/04/09/why-we-love-modular-contracting/" target="_blank"
                    ><p class="link-title-here mulish-bold-azure-radiance-16px">Why we love modular contracting</p>
                  </a>
                </div>
              </article>
            </div>
          </div>
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                <div class="title-liwU7q title mulish-bold-white-16px">2a. Planning phase</div>
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