Government ICT Procurement Policy Industry Survey

Government Government ICT Procurement Policy ForumICT Procurement Policy Forum

Charles MOKEx-officio Member

Hong Kong Information Technology Federation5 May 2008

Industry SurveyIndustry Survey

The SurveyThe Survey

Co-organized by CAHK, HKCS, HKITF, WTIA, ISIA and SCK Office

Conducted from May-August 2007 Target: contractors/subcontractors with

experience in Government ICT projects 31 completed questionnaires collected

Project Background Project Background InformationInformation

Industry Survey

Value and types of contractValue and types of contract

Va lu e o f co n tra c t

N o . o f re s p o n d e n ts : 29

>HKD$ 1 0 m illio n2 1 %

HKD$ 1 .3 - 1 0 m illio n3 1 %

HKD$ 1 .3 m illio n≦4 8 %

Op e n Te n d e r

6 1 %

S OA- QPS2 6 %

ITP S A13%

Typ e s o f c o n tra c t


Technical demonstrationTechnical demonstration

*Question only available to contracts required technical demonstration

3 %

2 3 %

3 4 %

7 %

3 3 % Tim e p ro vid e d fo r p re p a rin g te c h n ic a l d e m o n s tra tio n

Le s s th a n 1 w e e k

1 - 2 w e e ks

2 w e e ks - 1 m o n th

1 - 3 m o n th s

De m o n s tra tio n n o t re q u ire d


1 5 % 3 0 % 4 0 % 1 5 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Do yo u a g re e th a t s u ffic ie n t t im e w a s p ro vid e d to yo u fo r p re p a rin g te c h n ic a l d e m o n s tra t io n ? *

S tro n g ly Dis a g re e Dis a g re e N e u tra l A g re e S tro n g ly A g re e N o Co m m e n t


Contractor's liabilityContractor's liability

Ye s4 4 %

N o5 6 %

Wa s th e c o n tra c to r's lia b ility lim ite d ?


5 0 %

4 2 %

8 %

Typ e s o f lia b ility b e in g lim ite d

In d ire ct o r co n s e q u e n tia l d a m a g e s to th e G o v 'tTo ta l lia b ility e xce p t th ird p a rty p e rs o n a l lo s s a n d d a m a g e s to in te lle ctu a l p ro p e rtyOth e rs


Out-of-scope tasksOut-of-scope tasks

50% respondents were assigned with out-of-scope tasks (n=30)

*Question only available to contracts required technical demonstration

Co n tra cto r in itia te d o f fe r

2 0 %

Co s t a b s o rb e d b y ve n d o r

1 3 %

Oth e rs7 %

Re m u n e ra tio n a rra n g e m e n t fo r o u t-o f- s c o p e ta s ks *

N o . o f re s p o n d e n ts : 1 5

A cco rd in g to m a rke t p re v a ilin g ra te

4 0 %

G o v e rn m e n t in itia te d o f fe r7 %

Ba s e d o n ra te s p e cif ie d o n co n tra ct

1 3 %

Out-of-scope tasksOut-of-scope tasks

1 3 % 1 6 % 4 2 % 6 % 2 3 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Do yo u a g re e th a t th e re m u n e ra tio n a c c e p ta b le ?



Profit marginProfit margin

2 9 % 4 2 % 2 9 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Do yo u a g re e th a t th e p ro fit m a rg in o f Go ve rn m e n t c o n tra c ts m a tc h e d s im ila r c o n tra c ts in th e p riva te s e c to r?



General Comments on General Comments on Government ICT ProjectsGovernment ICT Projects

Industry survey

InnovativenessInnovativeness

1 6 % 2 3 % 3 2 % 2 9 %

0% 1 0% 20% 30% 40 % 50% 60 % 70% 80 % 90% 1 00%

Do yo u a g re e th a t s u ffic ie n t e m p h a s is is p la c e d o n b id d e rs ' in n o va tive n e s s fo r S OA -QPS co n tra c ts ?

S tro n g ly Dis a g re e Dis a g re e N e u tra l Ag re e S tro n g ly A g re e N o Co m m e n t


1 3 % 3 5 % 3 2 % 6 % 1 3 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Do yo u a g re e th a t s u ffic ie n t e m p h a s is is p la c e d o n b id d e rs ' in n o va t ive n e s s fo r o p e n te n d e r c o n tra c ts ?



Technical competencyTechnical competency

1 0 % 3 2 % 2 6 % 1 6 % 6 % 1 0 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Do yo u a g re e th a t s u ffic ie n t e m p h a s is is p la c e d o n b id d e rs ' te c h n ic a l c o m p e te n c y fo r o p e n te n d e r c o n tra c ts ?



Current liability regime…Current liability regime…

3 %

2 3 %

6 %

1 9 %

6 %

2 9 %

3 5 %

4 5 %

3 9 %

2 6 %

3 5 %

1 0 %

2 6 %

3 5 %

2 9 %

2 9 %

3 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


d e te rs yo u fro m p a rtic ip a tin g in Go ve rn m e n t ICT co n tra cts ?

m a tch e s ris k p ro file o f Go ve rn m e n t ICT co n tra cts ?

cre a te s b u rd e n in yo u r ca p ita l p ro v is io n in g ?

p re ve n ts co n tra cto rs fro m s u p p ly in g in n o va tive s o lu tio n s to th e Go ve rn m e n t?


55%

10%

64%

61%

Policy SuggestionsPolicy SuggestionsIndustry survey

Highest priority to see a change in policyHighest priority to see a change in policy

Un lim ite d lia b ility re g im e

4 8 %

S e le ctio n crite ria3 1 %

Te n d e rin g p ro ce s s1 7 %

Pa y m e n t a rra n g e m e n ts

4 %


Unlimited liability regimeUnlimited liability regime

5 0 %

3 2 %

1 8 %

S u g g e s tio n s o n re fo rm in g th e lia b ility re g im e

Ca p p in g in d ire c t a n d c o n s e q u e n tia l lia b ilitie s fo r a ll Go ve rn m e n t c o n tra c ts

Ca rryin g o u t ris k a s s e s s m e n t e xe rc is e s b e fo re d e te rm in in g lia b ilitie s

M a k in g n e g o tia tio n s w ith c o n tra c to rs to d e te rm in e lia b ilitie s


Selection criteriaSelection criteria

5 4 %4 2 %

4 %

S u g g e s t io n s o n im p ro vin g th e s e le c t io n c rite ria

M a in ta in in g a fa ir a n d c o m p e titive te n d e rin g e n viro n m e n t

M o re e m p h a s is o n te c h n ic a l co m p e te n c y o f b id d e r

Oth e rs


Tendering processTendering process

5 0 %

2 1 %

1 7 %

1 2 %

S u g g e s t io n s o n te n d e rin g p ro c e s s

Pro vid in g b id d e rs s u f f ic ie n t tim e to p re p a re te c h n ic a l d e m o n s tra tio n

As s e rtive ly n o tifyin g p o te n tia l b id d e rs a b o u t n e w te n d e rs

To b e m o re re s p o n s ive to b id d e rs ' e n q u irie s

Oth e rs

Payment arrangementsPayment arrangements

4 3 %

3 8 %

9 %

1 0 %

S u g g e s t io n s o n p a ym e n t a rra n g e m e n ts

S a tis fa c to ry re q u ire m e n t s h o u ld b e b a s e d o n o b je c tive ta rg e ts

Re m u n e ra tio n fo r o u t- o f-s c o p e ta s k s s h o u ld b e b a s e d o n m a rke t p re va ilin g ra te o r c o m m e rc ia l n e g o tia tio n sM in im iz in g d e la y in p a ym e n t

Oth e rs

Thank You

Government ICT Procurement Policy Industry Survey

Technology

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