[kictanet] Expensive software systems?

[Odhiambo Washington]

On Wed, Jun 25, 2008 at 9:56 AM, wesley kiriinya <kiriinya2000 at yahoo.com> wrote:
> Ladies and Gentlemen,
>
> How come most of the software systems Kenya gvnmt and related bodies
> purchase always cost 100s of millions if not a few billions?
> Like this one for KPA:
> http://www.bdafrica.com/index.php?option=com_content&task=view&id=8383&Itemid=5860
>
> This is not meant to hit anyone hard. I'm trying to see whether there is a
> better solution.
>
> So far this year I've heard of 3 systems:
> 1. KRA
> 2. Immigration
> 3. KPA.
>
> This KPA system costs a total of 450M, but the software bit is 200M. From
> the software features described I feel they could have got better value for
> their money.
>
> May be these systems really cost that much. May be there is someone in the
> list who can shed more light on these systems.
>
> BTW: To make this even more interesting various developers in the list can
> suggest a software solution component for each problem these systems solve,
> estimated development time and estimated cost. That way it's not just
> talking the talk but walking the walk.
>
> I'll take a shot:
> Case 1:
> From the newspaper article, one of the port guys is quoted as saying:
> "One unique thing about the system is its capacity to capture data in real
> time. The moment a vehicle rolls out of a vessel, its data is captured. This
> makes it easier for us to track such cargo and containers as well," said
> Osero.
>
> My take:
> Analysis: The machines which are costing 250M (It's 250M machines + 200M
> software = 450M entire system) have sensors that measure different
> qualities/properties of the item in the machine e.g. weight. These machines
> have an API to link them to a computer system. Using the API get the
> measured quantity and display/store in database etc. This isn't really the
> hardest thing to do as the manufactures of the 250M machines should provide
> documentation and support to the software developers.
>
> Estimated work force and time: 3 developers, 3-4 months.
>
> Cost: 200K * 3 developers * 4 months = 2.4M. + 20% (any other expenses) =
> 2.88M.
>
> Case 2:
> Another feature is keeping track/audit trails/ historical data.
>
> My take:
> Analysis: This is basically from:
> 1. Collection of good requirements from the port.
> 2. Designing the right architecture that fits the requirements.
> 3. Creating the right designs from the architecture.
> 4. Pass the designs to the programmers for implementation.
>
> 1-3 are Key and this is where the bulk of the money will go.
>
> Estimated work force and time: 3 system requirements/analysis collectors, 4
> months. The actual time depends on how well KPA know the problems they are
> facing, and how well they can describe them.
>                                               3 system/software architects,
> 3 months.
>                                               4 system/software designers, 5
> months.
>
> Cost: (Requirements) 100K * 3 * 4 = 1.2M+20% = 1.44M
>     (Architecture) 350K * 3 * 3 = 3.15M+20% = 3.78M
>     (Design) 250K * 4 * 5 = 5M+20% = 6M.
>
> So far the total is 14.1 M. And these are some of the most important roles.
> Even with 15 programmers @ 100K for 12 months (+20%) = 21.6M for a current
> toral of 35.7M.
>
> OK I'll stop there. I'm not writting a report. Feel free to correct me. I
> could be very wrong.

Hello Kiriinya,

This is a very interesting analysis and I'm compelled to agree with
you as regards the cost factors. However, the implementation process
doesn't seem to be that straight, and might not be for some time. Hey,
I am not being the govt spokesman on these matters but nothing is so
secret about it.
I do believe that tenders were invited for such implementations but I
don't know the details. I am only assuming it's the norm. If any
studies were carried out regarding the system requirements, then only
the IT Directors within those organizations can tell. Perhaps it's
time such information is made public via some govt publication (those
organizations are parastatals). I am not familiar with govt
procurement procedures but the last time I read anything about it, it
was a whole lot of a mess so you don't expect to see any level of
transparency in that. Those are some of the things the coalition govt
is supposed to be addressing, IIRC.
But even if you expressed interest in undertake such a project, I
wonder how much the organizations would be willing to let you in on
their operations. So the first question is: Did they give the
organization that won the tender the access into their operations in
order to understand their needs? I don't think so. Perhaps they just
"borrowed" from an organization that had done it for someone else and
customized! In such a case, no one cares to do the calculations as you
have done. They simply get a quote, "negotiate" and buy.
I believe this explains why the costs are as high as they are.



-- 
Best regards,
Odhiambo WASHINGTON,
Nairobi,KE
+254733744121/+254722743223
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"Oh My God! They killed init! You Bastards!"
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