LOCAL BUSINESS DEVELOPMENT (LBD) POLICY FRAMEWORK … Documents/LBD/LBD Policy Framework... ·...
Transcript of LOCAL BUSINESS DEVELOPMENT (LBD) POLICY FRAMEWORK … Documents/LBD/LBD Policy Framework... ·...
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18 February 2017
LOCAL BUSINESS DEVELOPMENT (LBD)
POLICY FRAMEWORK FOR
ICT INDUSTRY IN BRUNEI DARUSSALAM
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Wawasan 2035 Goals
1Well educated and highly skilled people
2High quality of life
3Dynamic and sustainable economy
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Wawasan 2035 Goals
1Well educated and highly skilled people
2High quality of life
3Dynamic and sustainable economy
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EIDPMO Strategic Goals
Digital Economy as an
important driver of
innovation,
competitiveness and
growth of economic
sectors in Brunei.
Local workforce
capabilities and skills
needs to be developed
to meet Digital
Economy requirements.
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1Involvement of local ICT workforce are mainly in the basic skill (entrant) level.
2Lack of locally made solutions in Government ICT projects due to low creation of local IP.
Current Local Involvement Status in Government ICT projects
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Current Workforce Structure in ICT Industry
74%
26%
46
21
6
1
8
13
4.5
0.5
Entrant
Specialist
Expert
Senior Management
Skills Level (%)Locals vs Non-Local (Skilled)
LOCALS FOREIGNERS
Data Source: 1,250 employees in 101 companies registered under AAB Status / ICTAB
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Status of Government ICT Projects using Local Solution
Data Source: 45 on-going Government ICT projects under EGNC in 2015.
Locally Made9%
Imported91%
Locally Made
Imported
Lack of locally made
software in
Government ICT
Projects
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Current Workforce Structure in ICT Industry
46
21
6
1
8
13
4.5
0.5
Entrant
Specialist
Expert
Senior Management
Skills Level (%)
LOCALS FOREIGNERS
Data Source: 1,250 employees in 101 companies registered under AAB Status / ICTAB
ICT Companies source for sub-contractors to
execute specialist jobs
and above
Need to grow local Entrant
level to Specialist & Expert
Generate local Intellectual
Property (IP)
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LBD Policy Framework for the ICT Industry
Focus is on ensuring development of local skilled
workforce and foster creation of local IP in the ICT industry.
A guideline to enable government agencies to apply a best
practice on “local content” in contracts and procurement
to ensure fair and reasonable opportunities for local suppliers
in the ICT sector.
Sets out the local content requirements for ICT companies
participating in the government ICT projects.
Objective is to maximise local content through greater
participation of capable local ICT workforce in the government
projects.
This initiative is in line with LBD policy implemented in
another industry under EIDPMO.
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Scope of LBD Policy Framework
ICT Companiesparticipating in government ICT projects
Project Owners and ManagersGovernment ministries & agencies executing ICT projects
GLCs (next phase)Implementing ICT projects
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LBD Allocation of Projects & Features
Micro: 1 – 4 employees
Small: 5 – 19 employees
Medium: 20 – 99 employees
Large: >100 employees
LEGEND
: Size of Business
: Type of Business
: Target Local Skilled Workforce involved in the project / activities
SP : Sole Proprietorships
P : Partnerships
LC : Limited Companies
EGNC has the authority to
approve proposal by Project
Owner concerning
deviations to Target Local
Skilled Workforce
requirement
SPECIALISED HIGHLY SPECIALISED
: Micro, Small and Medium
: Medium and Large
: SP, P and LC
: LC : Foreign Registered Companies
: 70%
: 50%
Requires specialized skills and ability of companies to develop, operate and maintain complex ICT systems and services.
Requires highly specialized skills, vast experience and ability of companies to develop, operate and maintain highly complex ICT systems and services.
BASIC HIGH VOLUME
: Micro and Small
: Small and Medium
: SP, P and LC
: LC
: 100% for projects < BND
100,000 : 90% for projects ≥ BND
100,000
: 80%
Requires company with little or less experience to execute low risk and less complex projects.
Requires company to handle huge requests of ICT projects and services which are less complex.
Complexity
Project Value
BND 250,000
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LBD Work Categories
SPECIALISED HIGHLY SPECIALISED
1. Infrastructure (hardware and software) 1.1 Servers 1.2 Storage 1.3 Network 1.4 Data Centre
2. Development (non-standard platform) 2.1 Application 2.2 Mobile (with Back-end) 2.3 Enterprise Database 2.4 Multimedia (CGI and/or 3D)
3. System Integration 3.1 Security 3.2 Identity / Authentication 3.3 System Integration
4. Technical Training
5. Technical Support 6. Procurement
6.1 Specialised Hardware 6.2 Specialised Software
1. Infrastructure (hardware and software) 1.1 Servers 1.2 Storage 1.3 Network 1.4 Data Centre
2. Development (non-standard platform) 2.1 Application 2.2 Mobile (with Back-end) 2.3 Enterprise Database 2.4 Multimedia (CGI and/or 3D)
3. System Integration 3.1 Security 3.2 Identity / Authentication 3.3 System Integration
4. Technical Training 5. Technical Support 6. Procurement
6.3 Specialised Hardware 6.4 Specialised Software
BASIC HIGH VOLUME
1 Development (standard platforms) 1.1 Web 1.2 Mobile (static) 1.3 Multimedia (2D animation) 1.4 Database (simple)
2 End-User Training 3 End-User Support 4 Procurement (minimal quantity)
4.1 Standard Hardware 4.2 Standard Software
1. Development (standard platforms) 1.1 Web 1.2 Mobile (static) 1.3 Multimedia (2D animation) 1.4 Database (simple)
2. End-User Training 3. End-User Support 4. Procurement (high quantity)
4.3 Standard Hardware 4.4 Standard Software
Complexity
Project Value BND 250,000
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LBD Quadrant Features
SPECIALISED HIGHLY SPECIALISED
1. License Partner
2. Open/Standard platform
3. Local services support still available
through partners
4. High level of investment/risk
5. Involves Enterprise technology
6. Opportunity for technology transfer
7. Opportunity for local training
1. Principle OEM
2. Closed platform
3. Complex services
4. High level of investment/risk
5. Involves Enterprise technology
6. Requires vast management experience
7. Opportunity for technology transfer
BASIC HIGH VOLUME
1. Simple services
2. Utilize EGNC readily available platform
3. Supply of items readily available in local market
4. Low risk
5. Low involvement of Enterprise technology
6. Less technical/management experience
7. Opportunity for local training
1. Simple services
2. Utilize EGNC readily available platform
3. High supply of items in local/external market
4. Low/High risk
5. Requires vast management experience
6. Opportunity for local training
Complexity
Project Value BND 250,000
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Opportunities for Micro & Small Companies
• Paid work opportunities for our local application developers to develop e-services using the E-Government Platform
• Low risk and less complex application development work to be done by our local small and medium sized companies
• Project value that amounts up to $100,000 (Basic)
Improve local content in small government
projects
Standardise the development and
hosting of online e-services
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Compliance and Monitoring Process
PROJECT STAGE ACTION ITEMACTION PARTY
Targets include but are not limited to:
1. Increase in no. of local skilled workforce.
2. Recruitment of local employees.
3. Training of local employees.
4. Local content spending.
Determine the quadrant of the project, targets and milestones.PRE-TENDER 1
Project Owner &
EGNC
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Compliance and Monitoring Process
PROJECT STAGE ACTION ITEMACTION PARTY
Propose LBD plan to reach target local skilled workforce specified in LBD FrameworkTENDER 2 Contractors
INCREASE IN NO. OF LOCAL SKILLED WORKFORCE
Start Project Mid Project End Project End of Contract LBD
Quadrant Target
Local Non-
Local
%
Local
Local Non-
Local
%
Local
Local Non-
Local
%
Local
Local Non-
Local
%
Local
TECHNICAL
Senior Management
Expert
Specialist
Entrant
OVERALL
ADMIN
Top Management
Supervisory
First-line
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Compliance and Monitoring Process
PROJECT STAGE ACTION ITEMACTION PARTY
Propose LBD plan to reach target local skilled workforce specified in LBD FrameworkTENDER 2 Contractors
NEW RECRUITMENT OF LOCAL EMPLOYEES FOR THE CONTRACT
Start Project Mid Project End Project End of Contract LBD
Quadrant Target
Local Non-
Local
%
Local
Local Non-
Local
%
Local
Local Non-
Local
%
Local
Local Non-
Local
%
Local
TECHNICAL
Senior Management
Expert
Specialist
Entrant
OVERALL
ADMIN
Top Management
Supervisory
First-line
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Compliance and Monitoring Process
PROJECT STAGE ACTION ITEMACTION PARTY
Propose LBD plan to reach target local skilled workforce specified in LBD FrameworkTENDER 2 Contractors
TRAINING OF LOCAL EMPLOYEES THROUGHOUT CONTRACT PERIOD
No Name IC Number and Colour
Scope of Training(s)
Completed
(Specify on-the-job
training or certified
training)
End of Contract Target
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Compliance and Monitoring Process
PROJECT STAGE ACTION ITEMACTION PARTY
Propose LBD plan to reach target local skilled workforce specified in LBD FrameworkTENDER 2 Contractors
LOCAL CONTENT SPENDING
Start Project Mid Project End Project End of Contract LBD
Quadrant Target
Local Non-
Local
%
Local
Local Non-
Local
%
Local
Local Non-
Local
%
Local
Local Non-
Local
%
Local
EMPLOYMENT
GOODS &
SERVICES
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Compliance and Monitoring Process
Note: ITCI shall be part of the Action Party in the Pre-Tender Project Stage for projects above BND5 million .
PROJECT STAGE ACTION ITEMACTION PARTY
Determine the quadrant of the project, targets and milestonesPRE-TENDER 1
Project Owner &
EGNC
Propose LBD plan to reach target local skilled workforce specified in LBD FrameworkTENDER 2 Contractors
Evaluate & assess the local content proposal by ContractorsEVALUATION 3
Project Tender
Review Committee
Agree to the targets & milestones defined in project contractAWARD 4
Contractor, Project
Owner & EGNC
Report compliance to local content to the Project Manager during the start, mid and end of project
IMPLEMENTATION
5 Contractor
Verify and submit start, mid and end progress report to ITCI EIDPMO6 Project Manager
Provide updates regularly in Online Business Reporting (OBR)7 Contractor
COMPLETION 8 EIDPMO Close reporting upon satisfactory achievement of LBD targets
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LBD Monitoring Structure
Contractor
Ministry/Department
EGNC & EIDPMO (ITCI Divison)
EIDPMO Head of LBD
LBD Team
Project Owner
Project Manager
Acknowledge progress of
LBD compliance
Assess LBD compliance of
ICT project
Report progress of
Contractors’ LBD
compliance
Comply to LBD requirement
set out in contract and
submit progress report
regularly
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ICT Project LBD Workflow
Contractor Project Owner Project Review
(EGNC)EIDPMO
Pre
-Te
nd
er
Te
nd
er
Eva
lua
tio
n&
A
wa
rdIm
ple
menta
tion
Co
mp
letion
Register and/or update
Online Business
Reporting (OBR)
**ICT Project Start. Set LBD
quadrant, target(s) and
milestones
Advertise/Release Tender
with LBD Quadrant
Specified
Propose LBD Plan to
reach Targets Specified
**Evaluate and Recommend
Award
Receive project update
report from Project Owner
Agree to LBD targets & milestones in Project Contract
Provide regular updates in Online
Business Reporting (OBR)
Report Compliance during
Start, Mid and End Project
Close reporting upon
satisfactory achievement
of LBD Targets
Verify and submit Start, Mid
and End Progress Report to
EIDPMO
Assess Start, Mid and End
Progress Report
Note: For projects above BND5 million, ITCID shall be part of the processes marked with **.
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LBD Implementation Date
It shall supersede the existing ICT Industry
Policy Framework on ICT Accredited
Business (ICTAB).
LBD policy implementation for ICT Industry shall take into effect on 1st March 2017.
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THANK YOUFOR YOUR KIND ATTENTION
For enquiries and further information
2224645 ext 1251
Mohd Jamil Hj Abd Jalil Md Zulhilmi Zaini