Good Practices in ICT Procurement under RA 9184

rogelio vicente juan o. morales rvjmorales@gmail.com

Govt ICT Procurements

Public perception:

Computerization slows down work processes.

LRA

LTO

POEA

COMELEC

DFA

GSIS

ICT Hardware Items

Description 1. Computing Devices Desktop PCs/Laptops/Tablets Servers 2. Networking Devices Wired routers and switches Wireless routers and switches 3. Duplicating machines, Printer/Fax/Scanner 4. Telephony Equipment (IP phones, etc.) 5. Data Network (copper, fiber) 6. AVR and UPS, Genset

ICT Software Items

Description 1. Operating Systems 2. Office Productivity (i.e., MS Office) 3. Specialized Software GIS, CAD, Multimedia Enterprise/Supply Chain/CR Mgt Sys 4. Databases 5. Systems & Network Mgt

ICT Supply Items

Description 1. Paper, Inkjet/Toner 2. DVD-R, CD-R, Floppy disks 3. Flash drives 4. Network cable, patch cable/plugs 5. Other consumables

ICT-related Services
Description 1. Anti-virus subscription End-point (various) Device specific (e.g., routers) 2. Tech Support & Preventive Maint Hardware: PCs, printers, network 3. Tech Support & Preventive Maint S/W Licenses: OS, DB, incl. patches (related to an existing product) 4. Internet Connectivity 5. Web/Server Hosting, Data Conversion 6. Training (end-user, IT staff) 7. Application Svc/Subscriptions

4 Trends in ICT & Govt

1. 2.

ICT cost/power ratio is rapidly going down. Demand for quality services increasing but the number of people to deliver them remains the same.

4 Trends in ICT & Govt

3.

4.

ICT personnel in govt are becoming a very scarce resource. Imperative for GOs to deliver the services yet operate in a sustainable manner

ICT Procurement Good Practices

1 3

Why

not best practices? Why good practices?

Situations

change Systems change

ICT Procurement Good Practices

Technical
Techs

capability: dont build it, buy it.

change so fast. Instead, build Project Mgt and leadership/supervisory skills.

ICT Procurement Good Practices

Introducing

a paradigm shift for the ICT unit:

From

ICT Specialists to ICT Project Managers

LEAN but MEAN

ICT unit

Certified:

Keep in mind

The more a firm strives for self-sufficiency, the larger it becomes.

Task of mgt increasing in complexity and diversity. Brings back the issue of strategic intent

IS Devt Strategy:

"Build or Buy" Rule of thumb:

Create a minimum, acceptable set of functions. Shop for OTS solutions. If at least 80% match, then consider a buy. For the unmet functions, weigh the cost of customizing. If more than the OTS cost, build.

Test: Goods or Services?

Anti-virus software Operating systems PC & printer maintenance contract ERP software RDBMS software

ICT Procurement Good Practices

Make

ICT proc plans harmonize with APP.

Why we have ISPs ICT is cross-cutting in all functions of the organization. One or more project may share the same ICT resource/infra

ICT Procurement Good Practices

As

the ICT unit, build a roster of reliable suppliers. Rate them periodically
Feedback to Purchasing Not just Purchasings job, its the ICT units too.

ICT Procurement Good Practices

Procurement

of ICTs: include the ICT unit in the process

Let the ICT unit review purchases; advise the BAC; inspect the items (work with purchasing & property units)

5 Equipment

ICT Procurement Good Practices

include

purchases:

site prep, installation, testing & comm, training, tech support and maintenance. Good project packaging and specs design

5 Equipment

ICT Procurement Good Practices

include

purchases:

site prep, installation, testing & comm, training, tech support and maintenance. Good project packaging and specs design

Have a holistic view of the procurement.

ICT Procurement Good Practices separate procurement activity

6 Feasibility studies are a

Serves to inform decision-making Example: solution design selection This process is variable

ICT Procurement Good Practices

Repeat
Case:

order: should be exception, not practice

each functional unit in the agency makes its own purchases. ICT unit should assert function Indicates lack of planning

ICT Procurement Good Practices

Plan

bulk purchases of PCs

There

is strength in numbers Trust branded PCs

Branded vs. Clone?

1. 2. 3. 4. 5.

Product Warranty Manufacturer Source Service Availability Product Reliability Maintainability (by Tech Support)
If you must buy clone make sure a supplier can closely match the warranty of a branded

ICT Procurement Good Practices

PCs

procured centrally but for distribution to different regions.

Ensure

local tech support.

ICT Procurement Good Practices

10

AMAP,

limit diversity among printers. Replenishment costs will be lower.

Case of Printer Inks

Relationship between Procurement Process AND Printer Ink type Inks for small users (small quantities of different types) could cause most of Purchasing Depts time

Pareto Principle
The

80/20 Principle:

inbuilt

imbalance between causes and results, inputs and outputs, and effort and reward.

Pareto Examples
80%

computers time spent executing 20% of code 80% of world wealth owned by 20% of richest 80% of profits come from 20% of products sold

ICT Procurement Good Practices guidance in PC specs.

11 ICT unit should provide

Purpose of use should dictate specs. Standard specs can be developed and updated periodically.

ICT Procurement Good Practices

12 The higher the complexity

of the procurement package, the higher the risk for failure.

Keep this in mind:

What to do?
Do a reality check Stricter penalty clause Well-defined SLAs But ensure enforcement!!! Limit bid to a minimum number of qualified suppliers

ICT Procurement Good Practices

13 RA 9184 is not just BACs

Lastly

business, its everybodys business.

Not just IT and purchasing, ALSO property, finance, accounting, etc. Procurement is a process that cuts across different functions in the organization.

SARO-related issues

Waiting game a cause of project implem delays SARO near-expiry

Consider Total Cost of Ownership

Real cost of product is not just its purchase price. TCO: total acquisition cost and operating costs.

Infrastructure (floor space) Electricity (for equipment, cooling, backup power) Downtime, outage and failure expenses Backup and recovery process, technology training Diminished performance (i.e. users having to wait, diminished money-making ability) Security (including breaches, loss of reputation, recovery and prevention)

Example 1

Procurement of outsourced network management service which includes the delivery/installation of a network management system and server onsite.

Example 2

Procurement of a turnkey solution using the services of a Systems Integrator

Example 3

Procurement of a web-based application with servers, network infrastructure and PC workstations.

Tech Specs for Goods

(Servers) Consider, if possible:

Intended use and application Minimum memory Minimum disk storage Connectivity Backup Performance (fault tolerance, availability, proc speed, expansion capability Packaging

Tech Specs for Goods

(Software) usually provide the ff:

Mode of operation/gen system archi Functional requirements, preferably detailed enough to the point of identifying all inputs and outputs Intended number of users Est. number of transactions to be handled Interfacing and interoperability requirements Compatibility, security and auditability requirements

Consulting TOR

Required expertise and minimum availability of expertise Expected outputs preferably with timetable TOR would normally contain:

Background Objectives, Scope of Services, Training (when appropriate) Reports & Time Scheulde Data, Local Services, Personnel, and Facilities to be provided by procuring entity

SLAs for Outsourced Svcs

Availability of the service to the user Minimum acceptable performance of the components to the service Measurement and reporting mechanisms that allow monitoring of the service Cost of the service or additional services (where applicable)

SLAs for Sys Dev & Maint

Possible service levels will revolve around:

Skill levels (i.e., certified staff) Productivity Response and turnaround times Limits on bugs per line of code Length of full warranty against defects or bugs after deployment

SLAs for Data Conversion

Possible service levels would involve:

Accuracy Turnaround time Security/confidentiality of information

SLAs for Repair & Maint

Typical service level metrics include:

Availability Location (on-site/walk-in) Response times of tech support Service/repair times, Service escalation clauses which may include provision of service units and/or replacements

GPRA Principles

Technology neutrality
competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding. Procurement based on objective standards

GPRA Principles

Brand names
Sec 3: the procurement process shall be made simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method. 4 justifications by way of strict exception.

Strict Exemptions

May specify brand, product, or standard names provided that it allows for functional equivalents thru addition of the words:

or substantially equivalent Wherein it means operationally and functionally interchangeable.

Successful ICT Proc

Well-written

SMART TOR
Scope

TOR is a

and Deliverables Timetables Cost Quality

In closing
Even

ICT projects suffer not just procurement problems but implementation problems. It takes Clear understanding It takes Clear communication