Darlin’, You’ve Got to Tell me Why, Should I Build or Should I Buy?* Mike Reissig Texas Deputy Comptroller WSATA 2017 * With deepest apologies to The Clash

Buy or Build: Tax System Considerations Agency and Vendor Understanding of Front End Agency Requirements How unique is the task to be maintained, upgraded, or replaced? Texas Comptroller case study—Treasury Texas Comptroller case study—ECMS Capacity/Expandability/Adaptability/Conversion Effort Testing and Training Reliability and Ease of Use Internal—can internal users depend on system without many change requests External—can taxpayers get into the system to pay, especially during peak times?

Buy or Build: Tax System Considerations Cost Issues Implementation Maintenance Repair Upgrade Licensing Savings and Revenue Issues Efficiency Savings from Ease of Use Encourages Voluntary Compliance Enhances Enforcement and Audit Capabilities

Buy or Build: Tax System Considerations Responsive to user needs in a way that is flexible, cost effective, and timely. “That’s an add-on.” Security Ownership and Control Data Security Apparatus Source Code—who actually owns the system? Retention of Institutional Knowledge Separation of Software and Service Provider Legal Issues

Considerations for Any Large IT Project Hidden or Unexpected Costs (from Vendor or Internal) Unrealistic Timelines Should I use an IVV Vendor? Who bears the burden of adaptability and at what cost? Scoping the Project Strong and Competent Project Manager—Vendor and Internal

Considerations for Any Large IT Projects Write a Strong Contract Schedule of Deliverables with Milestone Payments Contract Governance Framework Identify Key Personnel Remedies for Late or Non-Performance Limitation of Liability