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This is highly misleading. The original cost of the app was about 2.5mm. This has now increased to 4.7mm because of bug fixes, but also because the app was exp
by addicted 5y ago
This is highly misleading.
The original cost of the app was about 2.5mm. This has now increased to 4.7mm because of bug fixes, but also because the app was expanded to also include other types of information that allows it to be accepted by airlines, for example.
So the cost is 4.7mm for the existing working version of the app, which is nearly double the original stated cost but also includes additional features not in the original contract.
The state has additionally authorized another 7mm for the app to be potentially expanded to be used by other states as well.
So they basically got the original app within budget, expanded features which made it slightly more expensive, and are adding a 3rd phase which will add some more costs. All those costs add up to about 11-12mm.
Beyond that the state has authorized 27mm as a total budget which should allow them to add features/expand the app to handle new situations (for example, if changes need to be made for the new booster shots) quickly without having to first scramble for the money.
IOW, this actually looks like a surprisingly successful software contracting situation.
- willcipriano 5y agoIf they delivered bug free software initially it appears that they would've earned less overall revenue or am I reading this wrong?
- addicted 5y agoIt’s not entirely clear. The rise from 2.5mm to 4.7mm appears to include bug fixes but also additional scope that wasn’t covered under the 2.5mm. So it’s hard to say how much of the additional 2.2mm was due to bugs (if any) and how much was due to the added scope.
- addicted 5y agoWhat you have highlighted is the general problem with software contract projects. The incentives for the 2 parties are not just not aligned, they’re almost diametrically opposite. This is not the greatest analogy, but I think it gets at how hard it is to design a proper software contract.