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Agile for Government – Fix Price Projects

Agile for Government – Fix Price Projects. The Vendor Client relationship - in real world situations. Adv. Udi Nessimyan - CIO @ Israel Ministry of justice. Individuals and interactions. Responding to change. Working software. Customer collaboration. Following a plan.

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Agile for Government – Fix Price Projects

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  1. Agile for Government – Fix Price Projects • The Vendor Client relationship - in real world situations Adv. Udi Nessimyan - CIO @ Israel Ministry of justice

  2. Individuals and interactions Responding to change Working software Customer collaboration Following a plan Comprehensive documentation Contract negotiation Process and tools over over over over Agile Manifest Source: www.agilemanifesto.org

  3. Basic Contracts Quastions • How is the contract structured? • How does it handle changes in scope (requirements)? • How does it apportion Risk and Reward between customer and supplier? • What model of customer relationship does it foster: competitive (my win is your loss), cooperative (win-win), indifferent (I don’t care-you lose) or dependent (heads-I-win-tails-you lose)?

  4. Fixed Price / Fixed Scope

  5. Time and Materials

  6. Time and Materials with Variable Scope and Cost Ceiling

  7. “Money for Nothing, Changes for Free”

  8. Recommendations • Although all of the above will work. “Money for nothing, changes for free” contract turns the advantages of the Scrum and agile development processes into a competitive advantage. • By prioritizing and delivering business value incrementally, the chances of an outright failure are dramatically reduced. This advantage is passed on to the customer. • Furthermore, it’s a cooperative model, so it offers incentives to both parties to keep the costs down. • The early cancellation clause rewards the higher productivity achieved with Scrum teams. On the down side, this clause feels a bit like a 'golden parachute' which may not be politically acceptable in the current economic climate. The contract form lays the important groundwork for a successful project. And the Agile Manifesto got right: working with the customer is more important than the contract. So whatever you do, keep the customer relationship positive!

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