Attachment_D_-_Draft_Agile_Pricing_Methodology.pdf

Attachment D

Agile Pricing Methodology Contemplated Approach

The government requires agile teams to support task order requirements. During the course of market research, DHS found that the following could impact price:

• Ideal size of an Agile team is 5-10 people.

• DHS desires highly skilled teams to support its Agile projects.

• Some personnel are multi-disciplinary and those individuals may be utilized to contribute in more than one role on an Agile project.

• Over time, vendors desire to swap staff in and out of an Agile team depending on the demands of the project.

• Over time, team size will likely vary depending on the demands of an Agile project.

• The government desires fixed price Agile teams.

As such, the government recognizes that industry should be afforded the flexibility to compose and manage its agile team(s) without being limited by the government’s prescription of specified labor categories and hours.

With these factors in mind, DHS is contemplating the establishment of ceiling prices at the contract-level for teams composed of a specified number of full time equivalent (FTE) personnel. An FTE equates to the hours worked by one employee on a full-time basis and therefore 40 hours of work by one or more employees equals one FTE. For example, a fixed price team of eight FTEs could have 12 team members engaged throughout the project in various roles to meet the requirement.

The government would seek fixed ceiling prices at the contract-level that shall not be exceeded in a task order. Individual labor categories and rates will not be established and all orders under the vehicle will be fixed price.

Below is a sample chart to be completed by offerors.

Fixed Price Team Increment of Time

Proposed Fixed Ceiling Price

4 – 5 FTEs 1 week

6 – 7 FTEs 1 week

8 – 9 FTEs 1 week

10 FTEs 1 week

It is expected that in the development of proposed fixed ceiling prices, the offeror should consider its proven approach to agile and the historical composition of effective agile teams of a similar size. The offeror’s contract ceiling prices should accommodate the most complex of tasks and assume the most highly qualified teams to support them. It is projected that approximately 5% of the work to be performed would require a top secret clearance and therefore ceiling rates should accommodate the possibility of such requirements. It is anticipated that the proposed pricing for less complex task orders will be significantly discounted from the contract ceiling prices.

In addition to proposed contract ceiling prices, the government requests a two-page description of the methodology used to develop the fixed ceiling prices. The description would provide the logical basis and rationale behind the offeror’s approach to its ceiling prices and should include any assumptions the offeror made in development of its prices.

Roles

Offerors may comprise teams of the roles necessary for the task. While the government is allowing for full flexibility of team composition, the following roles are anticipated to be utilized under this contract and should be used as the basis for establishing the ceiling rates:

• Product Manager

• Technical Architect

• Interaction Designer / User Researcher / Usability Tester

• Writer / Content Designer / Content Strategist

• Visual Designer

• Frontend Web Developer

• Backend Web Developer

• Security Engineer

• Delivery Manager

• Agile Coach

• Business Analyst

• Digital Performance Analyst