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Comprehensive Guide to IT Contract Management at CAPE

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This document outlines the critical aspects of managing IT contracts within the Department of IT-CAPE. It explores the various types of contracts, including fixed-price, time and material, and fixed price per unit, highlighting their advantages and disadvantages. The guide covers potential supplier strategies, stages in contract placement, evaluation plans, and the mandatory and desirable sections in requirement documents. Additionally, it provides insights on acceptance procedures, project management, and legal requirements for effective contract management.

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Comprehensive Guide to IT Contract Management at CAPE

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  1. Managing contracts Dept of IT-CAPE Dept of IT-CAPE

  2. Introduction • Doing it yourselves-attractive • Potential suppliers –flexible • planning Dept of IT-CAPE

  3. Types of contract • Completed software application • Bespoke • Off-the shelf • Customized off-the shelf • Payment calculation • Fixed price contracts • Time and material contracts • Fixed price per delivered unit contracts Dept of IT-CAPE

  4. Fixed price contracts • Adv: • Known customer expenditure • Supplier motivation • Disadv • Higher prices to allow for contingency • Difficulties in modifying • Upward pressure on the cost changes • Thread to system quality Dept of IT-CAPE

  5. Time and material contracts • Adv: • Ease of changing requirements • Lack of price pressure • Disadv: • Customer liability • Lack of supplier Dept of IT-CAPE

  6. Fixed price per unit delivered contracts Dept of IT-CAPE

  7. Fixed price per unit delivered contracts • Adv: • Customer understanding • Comparability • Emerging functionality • Supplier efficiency • Life cycle change • Disadv: • Difficulties with s/w size measurement • Changing Dept of IT-CAPE

  8. Based on contractor selection • Open tendering • Restricted • negotiated Dept of IT-CAPE

  9. Stages in contract placement • Requirement analysis • OR • Mandatory • Desirable Dept of IT-CAPE

  10. Sections in requirement document Dept of IT-CAPE

  11. Evaluation plan • Draw up plan acc to proposals • Opposed to off the shelf application • Mandatory requirements are identified • Value for money Dept of IT-CAPE

  12. Invitation to tender • Needs requirement doc with supporting letter • Memorandum of agreement(MOA) • ISO12207 Dept of IT-CAPE

  13. Evaluation of proposals Dept of IT-CAPE

  14. Typical terms of a contract • Definitions • Forms of a agreement • Goods and services to be supplied • Services to be provided • Ownership of the software Dept of IT-CAPE

  15. Contn.. • Environment • Customer commitments • Acceptance procedures • Standards • Project and quality management • Timetable • Price and payment method • Miscellaneous legal requirements Dept of IT-CAPE

  16. Contract management • Decision points • Incremental delivery • Agents Dept of IT-CAPE

  17. Acceptance • Acceptance tests • Internal test plans • Pitfalls • Very short warranty period Dept of IT-CAPE

  18. Summary Dept of IT-CAPE

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