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.

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• Outdated Architectures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

10. Situation in Lithuania

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

29. Agile Procurement

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

35. Thank you! Questions?