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<h1 class="title-U1063x title titlepage">Process code for software procurement</h1>
<div class="main-frame-U1063x">
<div class="content-wi6YrP content">
<div class="intro-YPtuwI">
<div class="titlepage-4BgjV4"><div class="page-title-uxzAmJ titlepage">1e. Strategic analysis</div></div>
<div class="content-4BgjV4 content">
<p class="this-section-will-help-you-N6Xueu mulish-bold-black-16px">This section will help you:</p>
<div class="cluster-N6Xueu cluster">
<article class="goal">
<img class="icongoal-7JHL7T icongoal" src="img/icon-goal-24@2x.png" alt="icon.goal" />
<p class="this-is-a-goal-for-a-particular-activity detail">
Evaluate the total cost of owning software in four different scenarios
</p>
</article>
<article class="goal">
<img class="icongoal-m5PFxS icongoal" src="img/icon-goal-24@2x.png" alt="icon.goal" />
<p class="this-is-a-goal-for-a-particular-activity detail">
<span class="span0-bsBpLo detail">Mitigate downstream contracting issues </span
><span class="span1-bsBpLo mulish-normal-black-14px">(e.g. vendor lock-in)</span>
</p>
</article>
</div>
</div>
</div>
<div class="challenges-YPtuwI">
<div class="titlesubsection"><div class="subsection-title titlesection">Common challenges</div></div>
<div class="content-gHHvwB content">
<p class="you-may-encounter-th-V8le7T body">
<span class="span0-OYlFch body"
>You may encounter these frictions as you do the work of strategic analysis. These are challenges the </span
><span class="span1-OYlFch bodylink">Recommended actions</span
><span class="span2-OYlFch body">
are designed to solve, or that may arise as you take those actions.
</span>
</p>
<div class="challenge">
<img class="iconchallenge" src="img/icon-challenge-25@2x.png" alt="icon.challenge" />
<div class="content-ez2w20 content">
<div class="title-n7zEfN title mulish-bold-black-16px">Siloed budgeting and ownership</div>
<p class="lorem-ipsum detail">
Products are typically paid for and managed by a single department with its own budget. However, a
good software procurement, development process, and ongoing maintenance will draw on several
different business units. Furthermore, modular software should (at minimum) be interoperable with
systems across the city.
</p>
</div>
</div>
<div class="challenge">
<img class="iconchallenge" src="img/icon-challenge-25@2x.png" alt="icon.challenge" />
<div class="content-29nYnb content">
<p class="title-1686En title mulish-bold-black-16px">
Hesitancy to procure solutions that do not offer conventional support
</p>
<p class="lorem-ipsum detail">
Customer service and support is a main feature of service contracts. The lack of conventional
support channels is a common concern associated with open source software. In the previous step, you
evaluated the extent to which the community is actively maintaining open source software. If it is
not active, you can maintain in-house, or contract a vendor for maintenance. That will require a
shift in your staffing and budgeting. Organizations like the Foundation for Public Code can
help—they exist to help steward and maintain open source software.
</p>
</div>
</div>
<div class="challenge">
<img class="iconchallenge" src="img/icon-challenge-25@2x.png" alt="icon.challenge" />
<div class="content-MMwj68 content">
<p class="title-txw6tm title mulish-bold-black-16px">
Lack of familiarity with technical possibility
</p>
<p class="lorem-ipsum detail">
Civil servants are not well informed about the state of the art (what is technically possible and
impossible, what it takes to build and maintain software, and how data, privacy and ownership should
be managed). Up front capacity building and market analysis should fill this gap, but you can also
hire independent experts to support your strategic analysis.
</p>
</div>
</div>
</div>
</div>
<div class="pathways-YPtuwI">
<p class="at-the-end-of-this-p-Xemqba mulish-bold-black-16px">
At the end of this page you will choose one of the following approaches:
</p>
<div class="boxes">
<div class="cluster-U5yoTH cluster">
<div class="box-1">
<img
class="iconpathoff-the-shelf"
src="img/icon-path-off-the-shelf-5@2x.png"
alt="icon.path.off-the-shelf"
/>
<div class="flex-container-85939118-N0FUAq">
<div class="text0-85939118-r4dTFn titlesubsection">
<span class="span0-2Nl2nb titlesubsection">Purchase existing<br /></span>
</div>
<div class="text1-85939118-r4dTFn titlesubsection">
<span class="span1-9pk1cD body">Get software off the shelf</span>
</div>
</div>
</div>
<div class="box-2">
<div class="iconpathvendor-oss">
<div class="paper-LYAkMJ paper">
<img class="union-eKYbaY union" src="img/union-57@2x.png" alt="Union" />
<img class="union-S9ueVa union" src="img/union-47@2x.png" alt="Union" />
<img class="union-mIsMQw union" src="img/union-48@2x.png" alt="Union" />
</div>
<img class="x-LYAkMJ" src="img/--6@2x.png" alt="$" />
<div class="fork-standard">
<div class="ellipse-192"></div>
<div class="ellipse-193"></div>
<img class="vector-6" src="img/vector-6-4@2x.png" alt="Vector 6" />
<img class="vector-SLpqp9 vector" src="img/vector-34@2x.png" alt="Vector" />
<img class="vector-a9x70R vector" src="img/vector-35@2x.png" alt="Vector" />
</div>
</div>
<div class="flex-container-85939121-GrWGNh">
<div class="text0-85939121-T0b3Uy titlesubsection">
<span class="span0-olBbyQ titlesubsection">Customize OSS<br /></span>
</div>
<div class="text1-85939121-T0b3Uy titlesubsection">
<span class="span1-MLgYE3 body">Contract a vendor to adapt open source software</span>
</div>
</div>
</div>
</div>
<div class="cluster-R2DoOL cluster">
<div class="box-3">
<div class="iconpathvendor">
<div class="group-146">
<div class="paper-FEIaxo paper">
<img class="union-QxDvMt union" src="img/union-58@2x.png" alt="Union" />
<img class="union-zOxw2H union" src="img/union-47@2x.png" alt="Union" />
<img class="union-U1w8tp union" src="img/union-50@2x.png" alt="Union" />
</div>
<img class="code" src="img/code-4@2x.png" alt="code" />
<img class="x-FEIaxo" src="img/--6@2x.png" alt="$" />
</div>
</div>
<div class="flex-container-85939125-jL1a5y">
<div class="text0-85939125-iaIvQM titlesubsection">
<span class="span0-SyIcVF titlesubsection">Custom software<br /></span>
</div>
<div class="text1-85939125-iaIvQM titlesubsection">
<span class="span1-tmHQxz body">Contract a vendor to build software</span>
</div>
</div>
</div>
<div class="box-4">
<div class="iconpathinhouse">
<img class="union-MBm33K union" src="img/union-51@2x.png" alt="Union" />
<img class="gear-2-MBm33K gear-2" src="img/gear-2-27@2x.png" alt="gear 2" />
</div>
<div class="flex-container-85939128-sHjy5Y">
<div class="text0-85939128-OM4uad titlesubsection">
<span class="span0-piz8um titlesubsection">Build in-house<br /></span>
</div>
<div class="text1-85939128-OM4uad titlesubsection">
<span class="span1-wV8YnH body">Build software (or adapt OSS) in-house</span>
</div>
</div>
</div>
</div>
</div>
</div>
<div class="actions-YPtuwI">
<div class="titlesubsection"><div class="subsection-title titlesection">Recommended actions</div></div>
<div class="frame-114-fvBu62">
<p class="x1-performing-a-total-EI9xWd titlesubsection">
1. Performing a Total Cost of Ownership (Licensing) analysis
</p>
<p class="software-ownership-c-EI9xWd body">
<span class="span0-SxNoNm body"
>Software ownership can take many different forms, and each will have its own cost distribution. If
your market research </span
><span class="span1-SxNoNm mulish-normal-black-16px">(from the previous step)</span
><span class="span2-SxNoNm body">
revealed one or more commercially available software solutions or open source software solutions, you
will prepare a Total Cost of Ownership (TCO) analysis for each viable software option.</span
>
</p>
<div class="action">
<img class="iconaction" src="img/icon-action@2x.png" alt="icon.action" />
<div class="content-CACBB7 content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Perform a TCO (Licensing) analysis
</p>
<div class="flex-container-i108342160214892-tSOT5z">
<div class="text0-i108342160214892-nc1U2c titlesubsection-p">
<span class="span0-2Lj1zC titlesubsection-p">Acquisition:</span
><span class="span1-2Lj1zC detail">
including all costs of the procurement process and change management (if applicable)<br
/></span>
</div>
<div class="text1-i108342160214892-nc1U2c titlesubsection-p">
<span class="span2-Zh3X8z titlesubsection-p">Direct:</span
><span class="span3-Zh3X8z detail">
the “sticker price” of the solution (annual license or perpetual contract)<br
/></span>
</div>
<div class="text2-i108342160214892-nc1U2c titlesubsection-p">
<span class="span4-PvlEfm titlesubsection-p">Adaptation:</span
><span class="span5-PvlEfm detail">
cost of creating a custom instance (in the case of open source software)<br
/></span>
</div>
<div class="text3-i108342160214892-nc1U2c titlesubsection-p">
<span class="span6-iAB5wG titlesubsection-p">Integration:</span
><span class="span7-iAB5wG detail">
cost to integrate the software with existing digital infrastructures in use at the city (in
terms of staff time and any software or database costs)<br
/></span>
</div>
<div class="text4-i108342160214892-nc1U2c titlesubsection-p">
<span class="span8-GKDXp0 titlesubsection-p">Operating:</span
><span class="span9-GKDXp0 detail">
including annual fees, per-user cost, and insurance<br
/></span>
</div>
<div class="text5-i108342160214892-nc1U2c titlesubsection-p">
<span class="span10-EZggGL titlesubsection-p">Future customization:</span
><span class="span11-EZggGL detail">
also known as work orders, these arise when the city’s needs, processes, or underlying digital
infrastructure changes in the future<br
/></span>
</div>
<div class="text6-i108342160214892-nc1U2c titlesubsection-p">
<span class="span12-M6I0DF titlesubsection-p">Disposal:</span
><span class="span13-M6I0DF detail">
which may include removal of the installation, clean-up costs or legal fees</span
>
</div>
</div>
</div>
</div>
</div>
<div class="frame-138-fvBu62">
<p class="x2-performing-a-total-nQ5AbZ titlesubsection">
2. Performing a Total Cost of Ownership (Building) analysis
</p>
<p class="if-your-research-did-nQ5AbZ body">
<span class="span0-SDx4sm body"
>If your research did not reveal commercially available solutions, consider building custom software.
This can be built in-house </span
><span class="span1-SDx4sm mulish-normal-black-16px"
>(if you have staff with sufficient development capabilities, or budget to hire)</span
><span class="span2-SDx4sm body"
>, or you can contract a vendor to develop custom software. In order to weigh these options, you
should perform a TCO (Building) analysis.</span
>
</p>
<div class="action">
<img class="iconaction" src="img/icon-action@2x.png" alt="icon.action" />
<div class="content-SgBSx5 content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Perform a TCO (Building) analysis
</p>
<div class="flex-container-i107190960214892-IFJpVJ">
<div class="text0-i107190960214892-BH0RVV titlesubsection-p">
<span class="span0-UNRExP titlesubsection-p">Initial design:</span
><span class="span1-UNRExP detail">
including staff time and external consultants for planning the agile development process, and
accounting for repurposing open source software<br
/></span>
</div>
<div class="text1-i107190960214892-BH0RVV titlesubsection-p">
<span class="span2-JDvmVQ titlesubsection-p">Staff salary:</span
><span class="span3-JDvmVQ detail">
for software development, change management and ongoing maintenance </span
><span class="span4-JDvmVQ mulish-normal-black-14px"
>(including cost of contributing back to the open source community)<br
/></span>
</div>
<div class="text2-i107190960214892-BH0RVV titlesubsection-p">
<span class="span5-aF0Ixi titlesubsection-p">Integration:</span
><span class="span6-aF0Ixi detail">
cost for integrating with existing digital infrastructure at the city </span
><span class="span7-aF0Ixi mulish-normal-black-14px"
>(in terms of staff time and any software or database costs)</span
>
</div>
</div>
</div>
</div>
</div>
<div class="guidelinessolo">
<div class="title-CFq49X title">
<img class="iconguidelines" src="img/icon-guidelines@2x.png" alt="icon.guidelines" />
<p class="guidelines mulish-bold-black-16px">Consider the value of building (and sharing) software</p>
<img class="arrowdown" src="img/arrow-down@2x.png" alt="arrow.down" />
</div>
<div class="flex-container-i21760672117085-CFq49X">
<div class="text0-i21760672117085-4tR6Yx detail">
<span class="span0-t81OwK detail"
>If your organization has staff with sufficient software development capabilities, consider building
in-house. Although it takes more effort up front, there are long-term benefits (see Section 3,
next). Even if commercial options are available, consider building in-house. And remember that not
every government organization needs to be a full-scale development shop. You can:<br
/></span>
</div>
<div class="text1-i21760672117085-4tR6Yx detail">
<span class="span1-BrS235 detail">Contract a vendor to build custom software with you.<br /></span>
</div>
<div class="text2-i21760672117085-4tR6Yx detail">
<span class="span2-oGwD90 detail"
>Use open source software and collaborate with a global community of contributors and stewards.<br
/></span>
</div>
<div class="text3-i21760672117085-4tR6Yx detail">
<span class="span3-Xngmj6 detail"
>Co-procure custom software with peer jurisdictions and share the burden (financial and operational)
of ongoing maintenance.</span
>
</div>
</div>
</div>
<div class="frame-139-fvBu62 frame-139">
<div class="x3-comparing-options-QAFZBb titlesubsection">3. Comparing options</div>
<p class="your-tco-licensing-a-QAFZBb body">
Your TCO (Licensing) and/or (Building) analyses show the financial costs of various sourcing strategies.
There are also non-financial costs and benefits associated with each. Think of the long term impact that
each strategy will have on your organization.
</p>
<div class="action">
<div class="iconknowledge">
<div class="bulb">
<img class="union-xZ4FNE union" src="img/union@2x.png" alt="Union" />
<img class="group-194" src="img/group-194@2x.png" alt="Group 194" />
<img class="line-48" src="img/line-48@2x.png" alt="Line 48" />
</div>
</div>
<div class="content-Mln5p4 content">
<p class="a-knowledge-acquisit mulish-bold-black-16px">
This project is an investment in your organization’s future.
</p>
<div class="flex-container-i217618660216984-PaTUIi">
<div class="text0-i217618660216984-daT0I7 detail">
<span class="span0-3oDH88 detail"
>Consider the long-term value or risks that might arise with each of your options:<br
/></span>
</div>
<div class="text1-i217618660216984-daT0I7 detail">
<span class="span1-cVsnAD titlesubsection-p">Ownership:</span
><span class="span2-cVsnAD detail">
How is it owned and distributed? Most national governments encourage their agencies and
sub-national governments to transition software they build or contract to an open source
licensing model—which provides general benefit to the public.<br
/></span>
</div>
<div class="text2-i217618660216984-daT0I7 detail">
<span class="span3-Z0YEKP titlesubsection-p">Cost:</span
><span class="span4-Z0YEKP detail">
Will the vendor increase subscription costs, exact patch and upgrade fees, and or add service
costs? Do you have development staff, and do they have time to build and maintain software? How
might open source change the cost structure?<br
/></span>
</div>
<div class="text3-i217618660216984-daT0I7 detail">
<span class="span5-PJcu0f titlesubsection-p">Security and Compliance:</span
><span class="span6-PJcu0f detail">
Will the vendor issue patches and updates? This is particularly important when it comes to
complying with changes in policy (e.g. Personally Identifiable Information policy or Digital
Accessibility policy).<br
/></span>
</div>
<div class="text4-i217618660216984-daT0I7 detail">
<span class="span7-EjQU0Q titlesubsection-p">Flexibility:</span
><span class="span8-EjQU0Q detail"> Does the vendor “lock-in” customers?<br /></span>
</div>
<div class="text5-i217618660216984-daT0I7 detail">
<span class="span9-pJxQ4j titlesubsection-p">Interoperability:</span
><span class="span10-pJxQ4j detail">
Does the software fit your existing technical environment and workflows? Does it interface well
with your partners or other government entities?<br
/></span>
</div>
<div class="text6-i217618660216984-daT0I7 detail">
<span class="span11-cFGnol titlesubsection-p">Actual use:</span
><span class="span12-cFGnol detail">
Does the software have the features you need (or does it include many features you don’t
need)?<br
/></span>
</div>
<div class="text7-i217618660216984-daT0I7 detail">
<span class="span13-APEBtW titlesubsection-p">Capacity:</span
><span class="span14-APEBtW detail">
Could an investment in hiring new staff and/or training current staff for a software project
have long-term benefits for the organization?</span
>
</div>
</div>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/icon-action@2x.png" alt="icon.action" />
<div class="content-at1XGh content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Compare options based on a broad set of variables
</p>
<p class="lorem-ipsum detail">
Specifically, consider the long-term value and outcomes associated with each strategy.
</p>
</div>
</div>
</div>
<div class="guidelinessolo">
<div class="title-6jJvux title">
<img class="iconguidelines" src="img/icon-guidelines@2x.png" alt="icon.guidelines" />
<p class="guidelines mulish-bold-black-16px">Shifting from Capital Expenses to Operating Expenses</p>
<img class="arrowdown" src="img/arrow-down@2x.png" alt="arrow.down" />
</div>
<div class="flex-container-i25474322117085-6jJvux">
<div class="text0-i25474322117085-MIA8pE detail">
<span class="span0-2Q52Zd detail"
>Open source software is free, but it takes work to customize and maintain. Government organizations
will need to either hire staff who have capacity to implement and maintain software, or contract
technology service providers </span
><span class="span1-2Q52Zd mulish-normal-black-14px"
>(writing open contracts for services, as opposed to fixed costs for digital products and
licenses)</span
><span class="span2-2Q52Zd detail">.<br /></span>
</div>
<div class="text1-i25474322117085-MIA8pE detail">
<span class="span3-aWLtGS detail"
>That means the cost structure will be different. Budgeting for open source software implies a shift
from capital expenditure—buying a product </span
><span class="span4-aWLtGS mulish-normal-black-14px">(proprietary software)</span
><span class="span5-aWLtGS detail">—to operating expenditure—buying services </span
><span class="span6-aWLtGS mulish-normal-black-14px">(development and integration work)</span
><span class="span7-aWLtGS detail"> or staffing.</span>
</div>
</div>
</div>
<div class="frame-140-fvBu62 frame-140">
<div class="x4-co-procurement-lwgDHu titlesubsection">4. Co-procurement</div>
<p class="peer-jurisdictions-t-lwgDHu body">
<span class="span0-9qRBMA body">Peer jurisdictions </span
><span class="span1-9qRBMA mulish-normal-black-16px"
>(two cities in the same province, for example)</span
><span class="span2-9qRBMA body">
often share a similar set of challenges. Co-procurement is an effective strategy for sharing the cost
of obtaining and maintaining open source software that fills a common need, whether </span
><span class="span3-9qRBMA mulish-normal-black-16px"
>(building in-house or contracting a vendor to build and maintain custom software)</span
><span class="span4-9qRBMA body">.</span>
</p>
<div class="action">
<div class="iconknowledge">
<div class="bulb">
<img class="union-Wp5i4E union" src="img/union@2x.png" alt="Union" />
<img class="group-194" src="img/group-194@2x.png" alt="Group 194" />
<img class="line-48" src="img/line-48@2x.png" alt="Line 48" />
</div>
</div>
<div class="content-QkL3c9 content">
<p class="a-knowledge-acquisit mulish-bold-black-16px">
Co-procurement aligns with open source software
</p>
<p class="lorem-ipsum detail">
Sharing a single software license is impossible under proprietary licensing models, but—because open
source software is free to use, adapt, and redistribute—governments are fully within their rights to
collectively procure development or customization services from a technology service provider and
share it amongst themselves.
</p>
</div>
</div>
<div class="action">
<div class="iconknowledge">
<div class="bulb">
<img class="union-oXvBPJ union" src="img/union@2x.png" alt="Union" />
<img class="group-194" src="img/group-194@2x.png" alt="Group 194" />
<img class="line-48" src="img/line-48@2x.png" alt="Line 48" />
</div>
</div>
<div class="content-L5qK3M content">
<p class="a-knowledge-acquisit mulish-bold-black-16px">
Co-procurement increases value for everyone involved.
</p>
<div class="flex-container-i239747560216984-KrSbjG">
<div class="text0-i239747560216984-xLwjEx detail">
<span class="span0-kGyzc8 detail">Each beneficiary makes a smaller upfront investment<br /></span>
</div>
<div class="text1-i239747560216984-xLwjEx detail">
<span class="span1-XqS809 detail"
>Better software can be built with mutualized resources<br
/></span>
</div>
<div class="text2-i239747560216984-xLwjEx detail">
<span class="span2-85SvGl detail">Tax dollars go further<br /></span>
</div>
<div class="text3-i239747560216984-xLwjEx detail">
<span class="span3-ggbfDu detail"
>Increasing the number of interested suppliers. Vendors have the opportunity to get business
from more than one jurisdiction.<br
/></span>
</div>
<div class="text4-i239747560216984-xLwjEx detail">
<span class="span4-DDYosx detail">Peers contribute to improvements in the shared code</span>
</div>
</div>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/icon-action@2x.png" alt="icon.action" />
<div class="content-ZXPXi9 content">
<div class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Consult national-scale platforms
</div>
<p class="lorem-ipsum detail">
Consult platforms for match-making between jurisdictions that share needs. Reach out to peers and
communicate within your networks. The Foundation for Public Code provides co-procurement support as
well—reach out to us with any questions!
</p>
</div>
</div>
</div>
</div>
<div class="outcomes-YPtuwI">
<div class="titlesubsection"><div class="subsection-title titlesection">Takeaways</div></div>
<div class="frame-139">
<article class="outcome">
<div class="icongoal-flIiYC icongoal">
<div class="v2">
<img class="gear-2-DYapqW gear-2" src="img/gear-2-2@2x.png" alt="gear 2" />
<img class="arrow-2" src="img/arrow-2@2x.png" alt="arrow 2" />
</div>
</div>
<p class="this-is-an-outcome-t mulish-bold-royal-blue-16px">
Total Lifetime Cost of Licensing and Total Lifetime Cost of Building analyses
</p>
</article>
<article class="outcome">
<div class="icongoal-GD8ZzP icongoal">
<div class="v2">
<img class="gear-2-TESVx9 gear-2" src="img/gear-2-25@2x.png" alt="gear 2" />
<img class="arrow-2" src="img/arrow-2-22@2x.png" alt="arrow 2" />
</div>
</div>
<p class="this-is-an-outcome-t mulish-bold-royal-blue-16px">
Strategic analysis of alternatives for addressing the problem statement, based on direct and indirect,
present and future costs
</p>
</article>
<article class="outcome">
<div class="icongoal-kMoY2J icongoal">
<div class="v2">
<img class="gear-2-wQpVZ6 gear-2" src="img/gear-2-26@2x.png" alt="gear 2" />
<img class="arrow-2" src="img/arrow-2-23@2x.png" alt="arrow 2" />
</div>
</div>
<p class="this-is-an-outcome-t mulish-bold-royal-blue-16px">
Identification of downstream contract issues that might arise from specific vendors or general
business models
</p>
</article>
</div>
</div>
<div class="references-YPtuwI">
<div class="titlesubsection"><div class="subsection-title titlesection">Further reading</div></div>
<div class="frame-140-U1bY2V frame-140">
<article class="reference">
<div class="number"><div class="x1 body">1.</div></div>
<div class="content-5nJ2w0 content">
<div class="frame-163"><div class="source-name subtext">Rego University</div></div>
<a
href="https://cdn2.hubspot.net/hubfs/2652075/Downloadable_Files/regoUniversity%202018/Functional/TCO%20Best%20Practices%20for%20TCO%20Costing_SVMGT01.pdf"
target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
Best Practices for TCO Costing [Total Cost of Ownership]
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">2.</div></div>
<div class="content-AzLAPK content">
<div class="frame-163"><div class="source-name subtext">FairMarkit</div></div>
<a
href="https://www.fairmarkit.com/blog/4-key-steps-to-performing-an-effective-spend-analysis"
target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
4 Key Steps to Performing an Effective Spend Analysis
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">3.</div></div>
<div class="content-l0HnfB content">
<div class="frame-163"><div class="source-name subtext">CityMart</div></div>
<a
href="https://medium.com/citymartinsights/unit-3-choosing-your-procurement-path-8e1b711d0268"
target="_blank"
><div class="link-title-here mulish-bold-azure-radiance-16px">Choosing your procurement path</div>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">4.</div></div>
<div class="content-qyxse4 content">
<div class="frame-163"><div class="source-name subtext">CityMart</div></div>
<a
href="https://medium.com/citymartinsights/unit-4-designing-the-ownership-model-b68e82439acb"
target="_blank"
><div class="link-title-here mulish-bold-azure-radiance-16px">Designing the Ownership Model</div>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">5.</div></div>
<div class="content-8WIdx4 content">
<div class="frame-163"><div class="source-name subtext">CoProcure</div></div>
<a
href="https://www.cio.com/article/242681/calculating-the-total-cost-of-ownership-for-enterprise-software.html"
target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
Calculating the total cost of ownership for enterprise software
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">6.</div></div>
<div class="content-9QPJwq content">
<div class="frame-163"><div class="source-name subtext">SphereGen</div></div>
<a href="https://www.spheregen.com/cost-of-software-development/" target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
How to Estimate the Cost of Software Development
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">7.</div></div>
<div class="content-GTzSeL content">
<div class="frame-163"><div class="source-name subtext">IMFG Forum</div></div>
<a href="https://imfg.munkschool.utoronto.ca/research/doc/?doc_id=597" target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
Digital Dilemmas: Technology, Governance, and Canadian Municipalities
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">8.</div></div>
<div class="content-IzLXek content">
<div class="frame-163"><div class="source-name subtext">Ben Balter</div></div>
<a
href="https://ben.balter.com/2014/10/08/why-government-contractors-should-embrace-open-source/"
target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
Eight reasons why government contractors should embrace open source software
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">9.</div></div>
<div class="content-dmrMNx content">
<div class="frame-163"><div class="source-name subtext">Future Cities Canada</div></div>
<a
href="https://opennorth.ca/publications/technology-procurement-shaping-future-public-value"
target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
Technology Procurement: Shaping Future Public Value
</p>
</a>
</div>
</article>
</div>
</div>
<div class="strategic-paths-YPtuwI">
<div class="cluster-AxTf1k cluster">
<div class="titlesubsection">
<p class="subsection-title titlesection">It’s time to choose a path!</p>
</div>
<p class="you-should-now-have-NmdUQ1 body">
You should now have a clear sense of where your software will come from, based on your needs, your
development capacity, and the maturity of the market. At this point, you should be able to choose a path
and write your RFP accordingly.
</p>
</div>
<div class="boxes">
<div class="cluster-knhNDT cluster">
<div class="box-1">
<img
class="iconpathoff-the-shelf"
src="img/icon-path-off-the-shelf-4@2x.png"
alt="icon.path.off-the-shelf"
/>
<div class="flex-container-85939205-ZNgO9l">
<div class="text0-85939205-xJp8FX titlesubsection">
<span class="span0-buMv6D titlesubsection">Purchase existing<br /></span>
</div>
<div class="text1-85939205-xJp8FX titlesubsection">
<span class="span1-sfUaGH body">Get software off the shelf</span>
</div>
</div>
</div>
<div class="box-2">
<div class="iconpathvendor-oss">
<div class="paper-IhxX4b paper">
<img class="union-xDFvni union" src="img/union-62@2x.png" alt="Union" />
<img class="union-XG5ppx union" src="img/union-52@2x.png" alt="Union" />
<img class="union-Ktb4PX union" src="img/union-53@2x.png" alt="Union" />
</div>
<img class="x-IhxX4b" src="img/--8@2x.png" alt="$" />
<div class="fork-standard">
<div class="ellipse-192"></div>
<div class="ellipse-193"></div>
<img class="vector-6" src="img/vector-6-5@2x.png" alt="Vector 6" />
<img class="vector-9pcxaA vector" src="img/vector-36@2x.png" alt="Vector" />
<img class="vector-xyp635 vector" src="img/vector-37@2x.png" alt="Vector" />
</div>
</div>
<div class="flex-container-85939208-7OEeRo">
<div class="text0-85939208-7KI1l9 titlesubsection">
<span class="span0-dtQyWA titlesubsection">Customize OSS<br /></span>
</div>
<div class="text1-85939208-7KI1l9 titlesubsection">
<span class="span1-tujKw6 body">Contract a vendor to adapt open source software</span>
</div>
</div>
</div>
</div>
<div class="cluster-sKoNKP cluster">
<div class="box-3">
<div class="iconpathvendor">
<div class="group-146">
<div class="paper-GdsRuo paper">
<img class="union-Fh4M8Q union" src="img/union-63@2x.png" alt="Union" />
<img class="union-qncSE4 union" src="img/union-52@2x.png" alt="Union" />
<img class="union-ipHYzg union" src="img/union-55@2x.png" alt="Union" />
</div>
<img class="code" src="img/code-3@2x.png" alt="code" />
<img class="x-GdsRuo" src="img/--8@2x.png" alt="$" />
</div>
</div>
<div class="flex-container-85939212-G6YuwF">
<div class="text0-85939212-W8uix1 titlesubsection">
<span class="span0-VFe4yG titlesubsection">Custom software<br /></span>
</div>
<div class="text1-85939212-W8uix1 titlesubsection">
<span class="span1-qeTSPE body">Contract a vendor to build software</span>
</div>
</div>
</div>
<div class="box-4">
<div class="iconpathinhouse">
<img class="union-waQ8to union" src="img/union-56@2x.png" alt="Union" />
<img class="gear-2-waQ8to gear-2" src="img/gear-2-28@2x.png" alt="gear 2" />
</div>
<div class="flex-container-85939215-fTXwnj">
<div class="text0-85939215-yPBVKL titlesubsection">
<span class="span0-xUWudY titlesubsection">Build in-house<br /></span>
</div>
<div class="text1-85939215-yPBVKL titlesubsection">
<span class="span1-oA5Dlv body">Build software (or adapt OSS) in-house</span>
</div>
</div>
</div>
</div>
</div>
</div>
<div class="footer-nav-YPtuwI">
<div class="navfooterprev-v02-xkGDi5">
<img class="arrow-lkduxb arrow" src="img/arrow@2x.png" alt="arrow" />
<div class="title-lkduxb title mulish-bold-white-16px">1d. Market research</div>
</div>
<a href="2a-planning-phase-introduction.html">
<div class="navfooternext-v02-xkGDi5">
<div class="title-RJ9Zjc title mulish-bold-white-16px">2a. Planning phase</div>
<img class="arrow-RJ9Zjc arrow" src="img/arrow-6@2x.png" alt="Arrow" /></div
></a>
</div>
</div>
<div class="sidebarv2-wi6YrP">
<div class="top-qXrdrN">
<div class="navsidebarexpanded-xwm9v2">
<article class="navmainv3-XFpxM1 navmainv3">
<div class="section-title">
<div class="x1-section-name-foI59t x1-section-name titlesection-p">1. Orientation</div>
</div>
<div class="subsections">
<a href="1a-getting-oriented.html">
<article class="navsubsectionv2-mC3Agn navsubsectionv2">
<div class="capacity-building body">a. Welcome!</div>
</article></a
><a href="1b-capacity-building.html">
<article class="navsubsectionv2-NRt2yA navsubsectionv2">
<div class="b-subsection-name body">b. Capacity-building</div>
</article></a
><a href="1c-discovery-research-and-problem-statement.html">
<article class="navsubsectionv2-iKznGS navsubsectionv2">
<div class="c-subsection-name body">c. Discovery research</div>
</article></a
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