A model of owner estimate cost for software development project in Indonesia

Abstract

The purpose of this study is to develop a model of owner estimate cost of software development projects. The model consists of three main components, namely, personnel direct costs, nonpersonnel direct costs, and taxes. Personnel direct costs are obtained by using the use case points (UCP) method that has been advanced. Initially, UCP was utilized to calculate the effort required to complete the software project. In this study, UCP was institutionalized to obtain personnel direct costs by distributing the acquired effort into each activity in a project. Further, the effort per activity is multiplied by the pay rate for each activity. Personnel direct costs are resulted by adding up the cost of all activities. The experiment has been conducted on nine software development projects in which the model is applied to get the estimated cost calculation. KEYWORDSowner estimate cost, personnel direct cost, software project, use case points | INTRODUCTIONIn Indonesia, the process of procurement of goods or services for government agencies is carried out by the committed officer (CO) established under Presidential Regulation number 54 of 2010 and reinforced 1 Presidential Regulation number 70 of 2012. Procurement activities of goods and services by CO begin by making the planning of procurement of goods/services, which includes the following: (a) technical specifications of goods/services, (b) owner estimate cost (OEC), and (c) draft contracts. For the procurement of custom software (software that is not mass sold on the market), then the determination of OEC is a difficult activity.The task of setting OEC by CO is very important. The OEC should not be made too low because supplier candidates may not dare to follow the auction, so the auction process must be repeated even can fail. On the other hand, OEC should not be too high because CO should apply the efficiency principle in every process of goods/services to prevent financial wastage. One of the OEC functions is as a tool to assess the fairness of the offer including its details. Therefore, CO must compile OECs based on valid data sources resulting in a value that can be accounted for. On the other hand, procurement of goods/services for government agencies is often influenced by corruption, collusion, and nepotism behavior. 2 One of the ways is by inflating the budget at the planning stage or OEC markup. 3The preparation of the OEC is based on local market price data, obtained based on survey results prior to the procurement of goods/services. 4Unfortunately, for the preparation of OEC custom software projects, there is no market price or standard methods that can be used as a reference.To overcome this problem, the standardized price is needed as a reference and model to get a reliable OEC. The software project is categorized as a consulting services project 5 ; therefore, the OEC software project consists of three components, including personnel direct costs (PDC), nonpersonnel direct costs (NPDC), and taxes. To help simplify the CO task of creating OEC, it is impor...

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“…Estimated effort is obtained by multiply the UCP in Equation ( 15) with Productivity Factors (PF). Effort = UCP * PF (16) PF is the productivity factor, and it can be set equal to 20 person-hours/UCP, 8.2 personhours/UCP [59,60], or using the learning productivity ratio as proposed by [61].…”

Optimizing complexity weight parameter of use case points estimation using particle swarm optimization

“…PF is the productivity factor. We can set the number of PF equal to 20 person-hours/UCP, 8.2 person-hours/UCP [55], [56], or using the learning productivity ratio as proposed by [57].…”