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Foreword xv
Preface xix
Introduction xxi
Acknowledgments xxvii
1 Introducing Public Sector Project Management 1
Public Sector Project Management-Getting beyond the Confusion 2
What Are Public Projects? 2
Journalists' Questions 3
What Is Public Sector Project Management? 5
The Project Vision 5
Financing Public Projects 6
Project versus Program and General Management 7
Who Are the Public Sector Project Managers? 8
Types of Public Sector Project Managers 9
Skills, Attributes, and Requirements of Public Sector Project Managers 11
Continuity and Change in Public Sector Project Management 11
Leadership and Managerial Competencies 11
Ethics and Internal Controls 13
Rules and Regulations 14
Downsized Government and "the Hollow State" 15
Bashing the Bureaucracy 16
Managerial and Political Pushback 16
Political Ideology 17
How Public Projects Succeed and Fail 18
Endnotes 19
2 A Strategic Framework for Public Sector Project Management 23
The Framework and the Principal-Agent Challenge 25
Framework Element 1 Starting with the Right Plan 25
Framework Element 2 Selecting the Right Agents 27
Selecting the Most Experienced and Motivated Agents 28
Framework Element 3 Entering into the Right Agreements 29
Allocating Contract Risk 30
Contracts and Asymmetry of Information 33
Framework Element 4 Monitoring and Controlling the Project Execution 33
Ensuring Adequate Information about the Project Work 34
Enforcing Appropriate Agreements 35
Framework Element 5 Maintaining Active Involvement in the Operation and Maintenance of the Asset or Assets Created by the Project 36
Placing the Strategic Management Framework in Context 37
Endnotes 38
3 Project Planning, Part 1: Getting the Concept Right 41
Getting It Right: The Preliminary Steps of Public Sector Project Planning 43
Identifying the Correct Problem 45
Questioning Presumptions 47
Understanding the Project Context and Stakeholders 51
Understanding and Complying with Legal Requirements 52
Developing Realistic Preliminary Project Cost Estimates 56
Analogy-Based and Parametric Cost Estimating 57
Life-Cycle and Independent Cost Estimates 58
Concluding the Preliminary Project Planning Phase with a Feasibility Study 59
Endnotes 61
4 Project Planning, Part 2: Developing and Refining the Process 65
The Project Accountability Structure 66
Establishing the Right Project Internal Control Structure 66
The GAO's Five Standards for Internal Controls 67
Control Environment 67
Risk Assessment 67
Control Activities 68
Control Activities Specific for Information Systems 68
Information and Communications 68
Monitoring 69
Project Documentation 69
Preventing Fraud in Public Projects 74
Developing Clear Project Specifications 75
Specifications and Alternative Project Delivery Methods 78
Indefinite Delivery/Indefinite Quantity Contracts 80
Performance versus Design Specifications 82
Concluding the Intermediate Planning Stage 84
Endnotes 85
5 Project Planning, Part 3: Finalizing the Process 89
Developing the Project Schedule 89
Owner's Schedule in a Design-Bid-Build Public Construction Project 91
Scheduling the Project Work 95
The Work Breakdown Structure 95
Development of a Logic Diagram 97
Determination of the Schedule's "Critical Path" 98
Putting It All Together: The Importance of Realistic Scheduling 100
Refining Project Cost and Risk Estimates 100
Refining the Cost Estimate 101
Refining Risk Assessments 102
Technology Risks 103
Brainstorming and Sensitivity Analysis in Assessing Risks 104
Putting It All Together: Developing Realistic Presumptions behind Cost and Risk Estimates 105
Questioning Presumptions 106
Moving from a Realistic Cost Estimate to an Affordable Project Budget 107
Presenting Cost Estimates and Budgets to Project Stakeholders 108
Pulling Together the Planning Steps 109
Endnotes 112
6 Selecting the Best Agents, Part 1: Building the Project Team 115
Who Is on the Project Management Team? 116
What Are the Team Dynamics? 116
Establishing a Cohesive and Committed Team 117
Ensuring That Team Personnel Are Qualified 121
The Need for Clear Lines of Authority and Communication 123
Maintaining Clear Lines of Authority When Using Contractors 123
Ensuring an Appropriate Managerial Accountability Structure 126
Coaching the Team on Legal Requirements and Ethical Practices 130
Motivating the Project Team 131
Endnotes 134
7 Selecting the Best Agent, Part 2: Contractors and Consultants 137
Procuring Contractors and Consultants 138
Public Sector Procurement Rules 138
Key Characteristics of a Successful Procurement System 139
Successful Public Procurement Characteristic #1 Transparency 140
Successful Public Procurement Characteristic #2 Accountability 141
Successful Public Procurement Characteristic #3 Integrity 143
Successful Public Procurement Characteristic #4 Competition 146
Barriers to Competition in Long-Term Contracting 149
Proprietary Specifications 151
Successful Public Procurement Characteristic #5 Organizational Alignment and Leadership 151
Successful Public Procurement Characteristic #6 Human Capital Management 152
Successful Public Procurement Characteristic #7 Knowledge and Information Management 152
Successful Procurement Characteristic #8 Due Diligence in Selecting Contractors and Consultants 154
Selecting the Best Agents: Putting It All Together 154
Endnotes 155
8 Enacting Advantageous Agreements 159
The Essential Elements of Contracts 160
Allocating Contract Risks 160
The Contract Pricing Structure 161
Firm-Fixed-Price Contracts 162
Fixed-Price Incentive Contracts 162
Cost-Reimbursement Contracts 163
Cost-Plus-Fixed-Fee Contracts 163
Cost-Plus-Incentive-Fee and Cost-Plus-Award-Fee Contracts 164
Getting the Incentives Right 164
Cost-Plus-a-Percentage-of-Cost Contracts 166
The Contract Pricing Structure and Project Planning 166
Contract Provisions and Project Risk 168
Implied Warranties and Duties 171
Express Contractual Guarantees and Warranties 172
Breach-or-Contract Provisions 174
Clear Scopes of Work 174
Endnotes 176
9 Controlling Public Projects 179
Measuring Project Progress 179
Updating Project Records 181
Analyzing the Project Data Using Earned Value Management 183
Evaluating and Correcting Project Problems 187
Focusing on Quality in Projects 188
Controlling Cost Growth and Cost Overruns 190
Enforcing Agreements 193
Partnering and Change Orders 195
Keeping Stakeholders Informed of the Project's Progress 195
Endnotes 196
10 Project Closeout and Beyond 199
Final Steps in the Closeout Process 200
Evaluating the Contractor 200
Publicizing the Completed Project 201
The Project or Program Operational Stage 201
Maintaining Public Projects over the Long Term 203
Conclusion 207
Endnotes 208
Appendix 1 Discussion Examples Used in This Book 211
Appendix 2 Master List of Tips for Success for Public Sector Project Managers 215
Project Planning: Getting the Concept Right 215
A Correctly identifying the problem 215
B Questioning presumptions 216
C Understanding the project context and stakeholders 216
D Developing realistic preliminary project cost and risk estimates 216
2 Developing and Refining Project Planning (internal controls and project specifications) 217
A Establishing the right project internal control structure 217
B Two important project control activities 217
C Developing clear project specifications 217
D Specifications and alternative project delivery methods 218
E Performance versus design specifications 218
3 Finalizing Project Planning (schedule and cost estimation) 218
A Developing the project schedule 218
B Scheduling the project work 219
C Refining the cost estimate 219
D Refining risk assessments 219
E Developing realistic presumptions behind cost and risk estimates 220
4 Building the Project Team 220
A Establishing a committed and cohesive team 220
B Ensuring the team personnel are qualified 220
C The need for clear lines of authority and communication 221
D Ensuring an appropriate managerial accountability system 221
E Coaching the project team on legal requirements and ethical practices 221
F Motivating the project team 222
5 Procuring Contractors and Consultants 222
A Successful public procurement characteristic: Transparency 222
B Successful public procurement characteristic: Accountability 222
C Successful public procurement characteristic: Integrity 223
D Successful public procurement characteristic: Competition 223
E Successful public procurement characteristic: Knowledge and information management 223
F Successful procurement characteristic: Due diligence in selecting contractors and consultants 224
6 Enacting Advantageous Agreements 224
A The contract pricing structure 224
B Contract provisions and project risk 224
C Clear scopes of work 225
7 Controlling Public Projects 225
A Measuring project progress 225
B Updating project records 225
C Analyzing the project data 225
D Evaluating and correcting project problems 226
E Focusing on quality in projects 226
F Controlling cost growth and cost overruns 226
8 Project Closeout and Beyond 227
A Final steps in the closeout process 227
B The project or program operational stage 227
C Maintaining public projects over the long term 227
Appendix 3 Websites of Interest to Public Sector Project Managers 229
American Academy of Certified Public Managers 229
The American Association of State Highway and Transportation Officials (AASHTO) 229
American Management Association 230
American National Standards Institute (ANSI) 230
American Public Works Association 230
American Society for Quality 230
The Association for the Advancement of Cost Engineering (AACE International) 230
Building Design and Construction 230
Committee of Sponsoring Organizations of the Treadway Commission (COSO) 231
Construction Management Association of America 231
The Construction Specifications Institute 231
Defense Contract Audit Agency 231
Defense Contract Management Agency 231
Federal Acquisition Institute 231
Federal Acquisition Regulation Homepage 232
Federal Business Opportunities 232
International Cost Engineering Council 232
The International Council on Systems Engineering 232
The International Journal of Project Management 232
The National Center for Public Productivity 232
The National Certified Public Manager Consortium 233
Past Performance Information Retrieval System 233
Project Management Institute 233
The Public Manager 233
Public Works Management and Policy 233
R.S. Means 233
The Society of Cost Estimating and Analysis 234
The United States Government Accountability Office 234
The University of Wisconsin Certified Public Manager Program 234
References 235
Index 245
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