1. Cost Drivers Affecting Deployment of COTS-Based Systems Jeffrey Poulin and Walt Johnson Jeffrey.Poulin,W.A.Johnson @ lmco.com (607)751-6899 Lockheed Martin Systems Integration Owego, NY

2. Agenda Overview of COTS programs Cost drivers used in sizing model Requirements history Impact of cost drivers and requirements Lessons learned

3. Program A Purpose: Migrate data from 100+ applications into a data warehouse for common data mining. Size from Cost Model: –4375 Function Points –3.5m SLOC COBOL –50k SLOC Java/other Technologies used: –IBM System 390/MVS –DB2 Database –Datalogic GUI Builder –PRISM code generator for COBOL –Various APIs

4. Cost Drivers for Program A

5. Requirements Volatility for Program A Change Requests –Release 1: 61 –Release 2: 34 –“Not a large cost driver” (Managed by stable Configuration Management Process) Business Rules: –15 planned –100+ actual –Caused multiple design iterations of DB Schema

6. Cost Impact to Program A Cost impact as a function of planned vs. actuals: –Release 1: 5.1x –Release 2: 2.2x –Overall: 2.6x Lessons Learned: –Insist on complete documentation of business rules and legacy data. –Diverse nature of interfaces demanded custom handling and limited reuse.

7. Program B Purpose: Develop and integrate products for processing addresses on mail pieces using optical character recognition Size from Cost Model: –158k SLOC of development –180k SLOC of reuse –10 major suppliers of COTS components Technologies used: –IBM Risc System/6000 with AIX –Oracle Database –Visual Studio –Java/J-Builder GUI –Various APIs

8. Cost Drivers for Program B Total System Solution- 55% –System Design –Software development –COTS licenses –Integration of COTS and existing components (black-box) –Hardware Network- 13% Project management- 10% Interface development- 7% –To all legacy systems Training – 1% Support- 13% –Maintenance –Enhancements

9. Requirements Volatility for Program B Requirements –June 1998: 543July 1999: 934 –Aug 1999: 1208Oct 1999: 1299 –Feb 2000: 1186Dec 2000: 963 41.8% Fluctuation

10. Change Requests for Program B 5.1% CR rate Not a major impact

11. SLOC History of Program B High correlation between cost model prediction and EAC Inability to maintain COTS-based vision

12. Cost Impact to Program B Cost impact based on Estimate at Complete: –Release 1: 1.05x –Release 2: 1.11x Lessons Learned: –Necessity of managing customer expectation in COTS-based environment –Requirement to adapt customer business processes to obtain vision of using COTS-based solutions (very difficult!)