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Open Source Software in Federal Acquisitons Acquiring Maximum Agility: Beyond Open Standards TCO and Best Value Revisited.

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Presentation on theme: "Open Source Software in Federal Acquisitons Acquiring Maximum Agility: Beyond Open Standards TCO and Best Value Revisited."— Presentation transcript:

1 Open Source Software in Federal Acquisitons Acquiring Maximum Agility: Beyond Open Standards TCO and Best Value Revisited

2 Open Source Software in Federal Acquisitons 2 OMB Software Acquisition – “Level Playing Field”.. applies to acquisitions of all software, whether it is proprietary or Open Source Software. Open Source Software’s source code is widely available so it may be used, copied, modified, and redistributed. It is licensed with certain common restrictions, which generally differ from proprietary software. Frequently, the licenses require users who distribute Open Source Software, whether in its original form or as modified, to make the source code widely available. Subsequent licenses usually include the terms of the original license, thereby requiring wide availability. These differences in licensing may affect the use, the security, and the total cost of ownership of the software and must be considered when an agency is planning a software acquisition. OMB M-04-16 - July 1, 2004

3 Open Source Software in Federal Acquisitons 3 Open Source Software - OMB M-04-16 Code widely available Code may be used, copied, modified, and redistributed Code modifications must be made available Proprietary vs. OSS differences must be considered as the choice affects: –the use, –the security, and –the total cost of ownership.

4 Open Source Software in Federal Acquisitons 4 Attributes of Insularity Island, detached, isolated, narrow-minded Lack of transparency –Reduced peer review –No experimental replication –Less awareness of what works Less re-use / cross-breeding / competition Closed source more “insular” than open source by definition

5 Open Source Software in Federal Acquisitons 5 Attributes of Maximum Agility Open Standards – A “Given” Requirement Access to Source Code/Development Assets –Re-use / Modify / Copy / Re-distribute Other Benefits –Reduce vendor lock-in / increase competition –Build, buy or assemble / integration flexibility –Transparency / collaboration Open source less “insular” than closed source by definition

6 Open Source Software in Federal Acquisitons 6 Software Acquisition Goals If open source software has potential for: –More agility –More openness –More flexibility –More competition –More re-use –More transparency how do we encourage greater use?

7 Open Source Software in Federal Acquisitons 7 Total Cost of Ownership Financial estimate that systematically accounts for all costs related to an information technology investment decision. –Direct (eg. Software license, hardware, installation) –Indirect (eg. Asset management, cost of malfunction) –throughout the life cycle of an asset acquisition, operation, and disposition Initially developed by Gartner Research in 1987 Recognizes total cost is much more than initial purchase price for an asset Needed for cost-benefit trade-off analysis Each project different / TCO complex

8 Open Source Software in Federal Acquisitons 8 “Best Value” = Not Just Cost “Best value" means the expected outcome of an acquisition that, in the Government's estimation, provides the greatest overall benefit in response to the requirement. (FAR 2.101 Definitions) "Best value”… means the process used in competitive negotiated acquisition to select the most advantageous offer by evaluating and comparing factors in addition to cost or price (FAR 15.602(a)(2)). "The best (or greatest) value" is the offer which is most advantageous to the Government, cost or price and other factors considered. …determined by a cost-benefit tradeoff analysis. (AFARS 15.601 Definitions)

9 Open Source Software in Federal Acquisitons 9 Does Traditional TCO = Best Value? - Direct Costs - Licenses Support / Professional Services Development / Testing Training / Internal Staffing Operations / Maintenance - Indirect Costs - Project Management Asset Management Risk of malfunction -”Soft” / Benefits - Software Re-use –Commercial access to code –Modify/Copy –Reusable components –Reduce duplication Vendor Lock-in –Increased Competition Ease of Customization Greater Agility Enhanced collaboration

10 Open Source Software in Federal Acquisitons 10 Scenario: Agency X ‘New System’ Closed Solution TCO = $1 million Re-Use Potential –None Open Source Solution TCO = $2 million Re-Use Potential –20 Agencies –Value up to $20 million Multi-vendor support –Value = $? Can “Best Value” measure Government-wide savings arising from widespread re-use and increased competition via commercial open source software?

11 Open Source Software in Federal Acquisitons 11 Acquisition is the Driver Integrators respond to RFP selection criteria RFP selection criteria can favor “openness” when “Maximum Agility” is goal –Weighted towards more open access to code/asset Commercial open source license –Protects author Copyright but guarantees commercial access GOTS is not Commercial OSS Public Domain is not Commercial OSS Promoting an open and competitive eco-system


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