SkyNet
Business Case
SkyNet
Business Case
Business Case for the SkyNet Security System
Joe Schartman
joesch@scallinuxsystems.com
11-30-08
Executive Summary
SkyNet project alternate scope will be limited to a minimal prototype including simulation of camera, radar, and ground sensors. This prototype will provide the baseline software system capability while limiting costs and proving a proof of concept. The SkyNet protoype will provide customer confidence and value. This prototype will also allow strategic alignment with Department of Homeland Security (DHS) organization allowing the necessary operational changes with minimal finanical impacts. The protype plan should provide confidence to all the stakeholders including the DHS, agents, contractors, and local jurisdictions involved in the prototype testing. The stakeholders groups of concern are the contracting sponsor Department of Homeland Security (DHS), the DHS customer representatives including DHS SkyNet program management, and civilian contract representatives, the BA corporation developer prime contractor, and the end users and effected civilians groups, the BA developers and customer representatives that work together for the rapid application development using joint application development (RAD/JAD) process.
Table of Contents
Background 4
Risk 5
Contract Alternatives 6
Deliverables 7
Conclusion 8
References 9
Background
The SkyNet will provide a highly reliable, available, maintainable, and cost effective solution(s) to manage, control and secure the border using the optimal mix of proven current and next generation technology, infrastructure, personnel, response capabilities and processes. SkyNet will include a near real time Common Operating Picture (COP) of the border environment, which provides commonality within various DHS components, and inter-operability with other Federal, state, local and Tribal partners outside of DHS. The COP must provide a mechanism that communicates comprehensive situational awareness, including information incorporating intelligence driven operations capabilities at all operational levels and locations.
Risk
The risks include financial, operational, and schedule. All three of these risk have been minimized with the prototype system risk mitigation plan. This plan will reduce the early system costs while confirming successful system interfaces and software controls to be verifed by the prototype software functional qualification testing (FQT). Aftter successful FQT, the SkyNet system will proceed to a functional qualification testing (SQT) that will use and test all the real sensors. RAD/JAD based requirements changes after each requirements definition phase will be handled by an Engineering Change Proposal (ECP) process. This ECP process allows renogotiation. The development group will reuse some existing software middle for OS core and Service orientated archecture (SOA) SW layers. This SW reuse is both risk aversion and an example of using development stakes in the process.
Contract Alternatives
The resources needed for implementation include the management and engineering teams for the system engineering, software development, functional testing, and system integration virtual teams at the AL, AZ, CA, and NM locations. A Cost Plus Award Fee (CPAF) contract which provides for a fee consisting of (1) a base amount fixed at inception of the contract and (2) an award amount that maybe earned in whole or in part during performance. The DHS decided on a CPAF contract to provide motivation for excellence in the areas including quality, timeliness, technical ingenuity, and cost effective management. (FAR 16.404-2) The prototype will include the first 28 miles of the 6,000-mile SkyNet surveillance system and is set for completion by 2009. DHS Secretary Michael Chertoff estimated the first 28-mile phase near Tucson, Ariz., at $67 million, to be operational by January, 2009. The initial contract is for three years extending to 2011 given successful milestones and continued funding decision by US Congress. Table 1 - Contract Milestones shows the fixed price and variable award fees in millions of dollars for the 67 million prototype contract. The award fees will be determined by and performance evaluation criteria as specified in the CPAF contract.
Deliverables
The necessary work product artifacts to complete the SkyNet project include completion of System and Interface Requirement Specifications (SRS/IRS), Preliminary and Detailed Design Reviews (PDR/CDRs), and the system code base installation disks and document deliverables. The installation and deliverables will be installed at the designated border security stations along with operation and training. The code base installations will be tested in the functional, component, and system qualifications. See the above table for the details.
|
Contract Milestones |
Fixed Price Fee |
Variable Award Fee |
Date |
|
Requirement Design Reviews (RDR) |
5 |
5 |
2/2009 |
|
Critical Design Reviews (PDR/CDR) |
8 |
5 |
2/2010 |
|
Functional Qualification Test (FQT) |
10 |
7 |
2/2010 |
|
Component Qualification Test (CQT) |
5 |
5 |
3/2010 |
|
System Qualification Test (SQT) |
10 |
7 |
4/2010 |
Table 1 - Contract Milestones
Conclusion
The return on investment (ROI) will include the national security improvement benefits, and value saved in securing borders from contraband smugglers. The system will also be extendable to other countries and within local areas like university campuses. We believe that this contract has outstanding ROI possibilities along with excellent profit potential based on the the CPAF contract clauses. The BA corporation expects to profit mostly on the fixed priced contract awards and believes the award fees will be difficult to maximize based on prior design and integration metrics for a similar project. BA believes the intangible benefits that cannot be tracked to the bottom line using ROI calculations will have the greatest possibility for future ROI.
References