Industry Servey Report on Government ICT Procurement Plolicy · Industry Survey Report on...

Industry Surveyy Report on Government ICT Procurement Poolicy

survey was cco-organized by the Office of Mr. Sinn Chung Kai,

munications Asssociation of Hong Kong, Hong Kong Computeer Society, Hong

g Information TTechnology Federation, Hong Kong Wireleess Technology

stry Associationn, and Information and Software Industry Association. It

ed to consolidatee industry views on Government ICT procuremment policy and

ctively channel thhem to the Government.

survey was connducted during May to August in 2007, viaa questionnaire

ributed by (i) ooffice of Mr. Sin Chung Kai bi-weekly e-NNewsletter, (ii)

tation to SOA-QPPS contractors and subcontractors, (iii) invitaation emails by

nizers and ICT reelated organizations, (iv) winfax to ICT comppanies listed in

lic directories, (v)) online questionnaire.

questionnaire was divided into three sections: Sectioon A collected

kground informattion of the projects respondents’ had conduucted; Section B

cted respondentts’ general comments on Government ICT prrojects; Section

llected respondeents’ comments on possible policy suggestionns.

tal of 31 compleeted questionnaires were received. Responddents were ICT

orations who hhad been participated in Government ICCT projects as

tractors or subcoontractors. Given the limited number of GGovernment ICT

ects per year, thiss pool of respondents represents a significannt proportion of

s among the induustry.

Report on

1. The o

Com ociation of Hong Kong, Hong Kong Computer Society, Hong

Kon echnology Federation,

Indu

aim industry views on Government ICT procurement policy and

effe em to the Government.

2. The ducted during May to August in 2007, via

dist ffice of Mr. Sin Chung

invi S contractors and subcontractors

orga lated organizations

pub online

3. The was divided into three sections: Section A collected

bac ion of the projects respondents

colle s

C co nts

4. A to ted

corp ad been participated in Government ICT projects as

con ntractors

proj pool of respondents represents

view stry.

Section A – Project background information

1. Total value of the contract

Q. What was the total value of the contract

HKD$1.3-10

million

31%

>HKD$10

million

21%

Industry Surve licy

The survey was Chung Kai,

Communications As r Society, Hong

Kong Information ss Technology

Industry Associatio Association

aimed to consolidat ent policy and

effectively channel t

he survey was co

distributed by (i) ewsletter, (ii)

Q tion emails by

organizers and ICT r anies listed in

, (v

ire n A collected

background informa cted; Section B

collected responden ojects; Section

C collected respond s.

compl ents were ICT

corporations who T projects as

contractors or subc overnment ICT

year, thi t proportion of

views among the ind

Project background information

Total value of the contract

the total value of the contract?

≦HKD$1.3

million

48%10

No. of respondents: 29

1

Government ICT Procurement P

ffice of Mr. Si

Communications Association of Hong Kong, Hong Kong Comput

Wirel

y

aimed to consolidate industry views on Government ICT procure

he survey was conducted during May to August in 2007, vi

nvit

infax to ICT com

ire was divided into three sections: Secti

had cond

general comments on Government ICT p

policy suggestio

Respon

corporations who had been participated in Government I

. Given the limited number of

a significa

2

2. Types of contract

Q. What type of contract was it? Percentage

Open Tender 61%

SOA-QPS 26%

ITPSA 13%


SOA-QPS contract category

Q. Which category of service did this contract belong to? Percentage

Implementation & full system development life cycle

services

38%

On-going services 25%

Information security services on an as and when required

basis

25%

Pre-implementation & independent programme / project

management services

13%


ITPSA contract category

Q. Which category of service did this contract belong to? Percentage

General system development and maintenance services 75%

IT security services 25%


3. Channels to learn about the opening of this tender

Q. Through which channel(s) did you learn about the

opening of this tender?

Percentage

Invitation by the Gov’t 59%

Gov’t Logistics Department Electronic Tendering System 31%

Others 9%


4. Time provided to consider the tender

Q. How much time was provided for you to consider the

5. Time provided to prepare technical demonstration

Q. How much time is provided for the preparation of technical demonstration?

1-3 months

37%

3% 23%

0% 20%

Q. Do you agree that sufficient time was provided for you to

Strongly Disagree

2 weeks 1-3

months

7%

Demonstr

ation not

required

33%

Time provided to consider the tender

Q. How much time was provided for you to consider the tender?

provided to prepare technical demonstration


1-2 weeks

27%

2 weeks- 1

month

36%

3 months


48% 26%

40% 60% 80%


consider the tender?

Strongly Disagree Disagree Neutral Agree Strongly Agree No Comment


Less than

1 week

3%1-2

weeks

23%

2 weeks -

1 month

34%


3


26%

100%


No Comment


6.

7. Tender enquiries

100% respondents were provided with formal channel for

(No. of respondents: 31)

Q. Have you made any enquiries on the tender

requirement?

Yes

No

15%

0% 20%


(Question only available to contracts required demonstration)

Strongly Disagree

6% 32%

0% 20%

Q. Do you agree that the user requirement is clear and

Strongly Disagree

100% respondents were provided with formal channel for enquiries

Q. Have you made any enquiries on the tender Percentage

70%

30%


30% 40%

40% 60% 80%


prepare for technical demonstration?(Question only available to contracts required demonstration)



32% 32% 23%

40% 60% 80%


specific?



4

enquiries.


15%

100%


(Question only available to contracts required demonstration)

No Comment


6%

100%


No Comment


8. Contractor’s liability

Q. Did the contract include terms that

limited contractor’s liability?

No

Yes

9. Out-of-scope task

Q. Have you been assigned with

out-of-scope task of the contract?

Yes

No

1-2 weeks

33%

1-3 months

5%

Q. What was the average turn around time for user department to

reply your enquiries on tender requirement of this project?

Total liability

except third

party loss and

damages to

intellectual

property

42%

Others

8%

Q. What kind of liability did the contract limit?(Question only available to contracts with liability limited)

Q. Did the contract include terms that

s liability?

Percentage

56%

44%


Q. Have you been assigned with

scope task of the contract?

Percentage

50%

50%


Less than 1

week

62%

the average turn around time for user department to

reply your enquiries on tender requirement of this project?


Indirect or

consequential

damages to

the Gov't

50%

Q. What kind of liability did the contract limit?(Question only available to contracts with liability limited)


5

the average turn around time for user department to

10. Resources devoted to documentation

Q. How much resources were devoted to documentation?

Contractor

initiated offer

20%

Based on rate

specified on

contract

13%

Cost absorbed

by vendor

13%

Others

Q. How was the remuneration for out

(Question only available to contracts with out

13% 16%

0% 20%

Q. Do you agree that the remuneration for out

Strongly Disagree

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0%

Pe

rce

nt

of

resp

on

de

nts

Man

Resources devoted to documentation

Q. How much resources were devoted to documentation?

According to

market

prevailing rate

40%

Gov't initiated

offer

7%

Contractor

initiated offer

Others

7%

Q. How was the remuneration for out-of-scope tasks

being arranged?(Question only available to contracts with out-of-scope tasks)


42% 6%

40% 60% 80%

Q. Do you agree that the remuneration for out-of-scope task

acceptable?


No. of respondents:

20% 40% 60% 80%

Percentage of total man-days of work

Man-days of work devoted to documentation


6


23%

100%

scope task

No Comment


100%


11. Profit margin

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0%

Pe

rce

nt

of

resp

on

de

nts

Total operating expenses devoted to documentation

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0%

Pe

rce

nt

ofv

resp

on

de

nts

Project duration devoted to documentation

29%

0% 20%

Q. Do you agree that the profit margin of Government

contracts matched similar contracts in the private sector?

Strongly Disagree

20% 40% 60% 80%

Percentage of total operating expenses



20% 40% 60% 80%

Percentage of project duration

Project duration devoted to documentation

No. of respondents:

42% 29%

40% 60% 80%





7

100%



100%


29%

100%



No Comment


8

12. Length of period before receiving full payment

Q. When did you obtain full payment after the

completion of project?

Percentage

Within 1 month 13%

1-3 months 47%

3-6 months 20%

6-12 months 10%

More than 18 months 10%


Section B – General comments on Gov

Selection criteria

1. Innovativeness for SOA

2. SOA-QPS contracts selection criteria ratio

Q. What is the ratio of different selection criteria for SOA

consider appropriate?

16%

0% 20%

Q. Do you agree that sufficient emphasis is placed on bidders'

innovativeness for SOA

Strongly Disagree

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0%

Pe

rce

nt

of

resp

on

de

nts

Appropriate ratio of price in selection criteria

General comments on Gov’t ICT projects

for SOA-QPS

QPS contracts selection criteria ratio

Q. What is the ratio of different selection criteria for SOA-QPS contracts do you

consider appropriate?

23% 32% 29%

40% 60% 80%


innovativeness for SOA-QPS tender contracts?



20% 40% 60% 80%

Ratio of price in selection criteria



9

contracts do you

29%

100%


No Comment


100%


Others suggested selection criteria from respondents include technical

competency, solution quality, experience & qualification, and company profile.

3. Technical competency for open tender

4. Innovativeness for open tender

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0%

Pe

rce

nt

of

resp

on

de

nts

Appropriate ratio of innovativeness in selection criteria

10% 32%

0% 20%


technical competency for open tender contracts?

Strongly Disagree

13%

0% 20%


innovativeness for open tender contracts?

Strongly Disagree



Technical competency for open tender

open tender

20% 40% 60% 80%

Ratio of innovativeness in selection criteria



32% 26% 16%

40% 60% 80%


technical competency for open tender contracts?



35% 32% 6%

40% 60% 80%


innovativeness for open tender contracts?



10



100%



6% 10%

100%


No Comment


6% 13%

100%


No Comment


11

5. Open tender contracts selection criteria ratio

Q. What is the ratio of different selection criteria for open tender contracts do

you consider appropriate?



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0% 20% 40% 60% 80% 100%

Pe

rce

nt

of

resp

on

de

nts

Ratio of price in selection criteria



0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0% 20% 40% 60% 80% 100%

Pe

rce

nt

of

resp

on

de

nts

Ratio of innovativeness in selection criteria



6. Fair tendering requirement

Unlimited liability regime

7. Q. Do you agree that the current liability regime

6% 23%

0% 20%

Q. Do you agree that the tendering requirements are fair to all

Strongly Disagree

3%

23%

6%

6%

29%

35%

39%

0% 20%

Strongly Disagree

deters you from participating in Gov't

creates burden in your capital

prevents contractors from supplying innovative

Fair tendering requirements

Q. Do you agree that the current liability regime…

42% 23%

40% 60% 80%


bidders in Government contracts?



19%

29%

45%

39%

26%

35%

26%

35%

29%

29%

40% 60% 80%


deters you from participating in Gov't ICT contracts?

matches risk profile of Gov't ICT contracts?

creates burden in your capital provisioning?

prevents contractors from supplying innovative

solutions to the Government?


12

3%3%

100%


No Comment


10%

29%

29%

3%

100%

No Comment


Section C – Policy suggestions

1. Highest priority to see a change in

Q. Which area would you like to see a change in policy the most?

2. Highest priority on reforming the liability regime

Q. Which area would you suggest on

reforming the liability regime the most?

Capping indirect and consequential

liabilities

Carrying out risk assessment exercises

before determining liabilities

Negotiations with contractors to determine

liabilities

3. Highest priority on improving the selection criteria

Q. Which area would you

improving the selection criteria the most?

Maintaining a fair and competitive

tendering environment

More emphasis on technical competency

Others

Selection

criteria

31%

Tendering

process

17%

Payment

arrangements

4%

Policy suggestions

Highest priority to see a change in policy

Which area would you like to see a change in policy the most?

Highest priority on reforming the liability regime

area would you suggest on

reforming the liability regime the most?

Percentage

Capping indirect and consequential 50%

arrying out risk assessment exercises

before determining liabilities

32%

Negotiations with contractors to determine 18%


Highest priority on improving the selection criteria


improving the selection criteria the most?

Percentage

Maintaining a fair and competitive

tendering environment

54%

More emphasis on technical competency 42%

4%


Unlimited

liability

regime

48%


13


14

4. Highest priority on changing the payment arrangements


changing the payment arrangements the

most?

Percentage

Satisfactory requirement should be based

on objective targets

43%

Remuneration for out-of-scope tasks

should be based on market prevailing rate

or commercial negotiations

38%

Minimizing delay in payment 10%

Others 10%


5. Highest priority on improving the tendering process


improving the tendering process the most?

Percentage

Providing bidders sufficient time to prepare

technical demonstration

50%

Assertively notifying potential bidders

about new tenders

21%

To be more responsive to bidders’

enquiries

17%

Others 13%


Industry Servey Report on Government ICT Procurement Plolicy · Industry Survey Report on...

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