Agile and Fixed Bid

For long, I had this misconception that Fixed Bid and Agile do not go in the same lane. Thanks to Pete Deemer and his session today, cleared quite a bit of my understanding.

Repeating the same below for others’ convenience (writing this in generic terminology, not in SCRUM terms):

  • Once a defined scope (product backlog) has been agreed for an iteration (Sprint) and if the iteration is in progress, the scope cannot be changed. SCRUM has this big myth that anything goes. Scope can be changed at any time during the project. Wrong!
  • If there is a need for the scope to be changed, scope of equivalent size should be removed from the list of features to be developed. Thus, there is no additional scope to be developed by the project team. Hence, no CR’s.
  • If any scope agreed cannot be removed, only then there is an increase in the cost of developing the incremental scope.
  • If the customer feels that the developed software so far fulfills his business requirements, he can take a decision to stop the work immediately.
  • If an organization has a history of running SCRUM projects and has a recorded history of how many features can be  developed by a team over period of time (velocity), it can agree for a fixed-scope to be delivered for a release to the customer. The customer gets access to working software from his partner early – enabling him to get early visibility. How they are internally broken down to various sprints will depend on the team’s capacity planning.
With these items, I am quite sure that Fixed Bid projects can be initiated by IT vendors using the Agile methodology. Maybe it is being already done now but got to know it today. Thanks Pete.

2 Responses to “Agile and Fixed Bid”

  1. Vettri Says:

    could relate to FP estimation, removing or replacing(similar) functionality has minimal impact.
    Have come across scenarios where, scope changes are due to inadequate information (requirements) forcing the project to go back to estimation (planning game).
    Frequently re-planning in fix bid project, is not a good news.

  2. lamhot Says:

    over 50 percent IT project fail because while the project in progress the scope of work is change. i learn so much from this article . thanks bro

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