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3. System Acquisition
Pages 10-16

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From page 10...
... Yet, because of repeated examples of grossly mismanaged largescale systems, the panel considers it essential that able people and good management structure be mobilized to carry out this development with a maximum guarantee against schedule slippages, cost overruns, and transition problems. During the review that formed the basis for this second report, the panel examined the SSA's developing acquisition strategy and its planning for the management and control of the development process.
From page 11...
... These include · Development of a mission needs statement o Designation of a program manager · Development of an acquisition strategy · Establishment of clear lines of authority The panel concludes that to satisfy these requirements, and to ensure the continuity of SSA operations during the transition, the SSA should formalize the interrelated planning that will need to be accomplished by several components of the SSA organization, and that this should be done through two plans or internal contracts: A Management Plan to establish overall policy guidance o A Project Plan to articulate the acquisition strategy and to detail the plan of action for acquiring the new system. Both plans could be viewed as contracts -- the Management Plan as a contract between the Commissioner of Social Security and the Secretary of Health, Education, and Welfare, and the Project Plan as a contract between the Commissioner of Social Security and the program manager e .
From page 12...
... Implementation Selected vendor designs and tests prototypes of subsequent modules, integrates efforts of other vendors and government organizations, undertakes development of the applications software, and bids on hardware. CRITERION #l: Vendors will be judged on a sound and rational architectural design; modeling outputs that verify the architecture's performance; experience with projects of similar size and complexity, and the results of detailed cost and risk analyses.
From page 13...
... Examples of such events include critical design completion and module demonstration. Controlled items: These items include items requiring approval at senior management levels before they can be changed and items that would trigger project reviews whenever they deviated significantly from the plan.
From page 14...
... · Procurement Approach: A summary of the approach for procuring major project elements of hardware, software, and other support. This section should address compliance with requirements of Circular A-109 and Federal Procurement Regulations, Title 41, Subpart 1-4.11, "Procurement and Contracting for Government-Wide Automated Data Processing Equipment, Software, Maintenance Services and Supplies.'' PROJECT CONTROL It will be helpful to think of project control as a system -- the information system that provides the primary management data for progress assessment, performance prediction, plan variance or problem identification, and informed decision making.
From page 15...
... Thus, wherever responsibility shifts to a contractor, the role of SSA would become less a matter of direction and more of detailed monitoring, and the project control system should provide information for assuring proper progress and technical feasibility, rather than for providing unilateral government direction. The current acquisition strategy of the SSA contemplates competitive development of alternative concepts followed by increasingly detailed demonstrations of concept capability to fulfill the agency's objectives.
From page 16...
... the practices of the industry/ contractor, and (c) the relative responsibilities of the SSA and the contractors for system development.


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