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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

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

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

4 Trends in ICT & Govt 1. ICT cost/power ratio is rapidly going down. . 2. Demand for quality services increasing but the number of people to deliver them remains the same.

4. Imperative for GOs to deliver the services yet operate in a sustainable manner . ICT personnel in gov’t are becoming a very scarce resource.4 Trends in ICT & Govt 3.

ICT Procurement Good Practices 1 3  Why not “best practices?”  Why good practices?  Situations change  Systems change .

change so fast.ICT Procurement Good Practices 1  Technical  Techs capability: don’t build it. build Project Mgt and leadership/supervisory skills. .  Instead. buy it.

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

acceptable set of functions. – – . build.IS Devt Strategy: ● "Build or Buy" Rule of thumb: – Create a minimum. weigh the cost of customizing. If more than the OTS cost. For the unmet functions. If at least 80% match. then consider a buy. Shop for OTS solutions.

Test: Goods or Services? Anti-virus software  Operating systems  PC & printer maintenance contract  ERP software  RDBMS software  .

ICT Procurement Good Practices  Make  2 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 .

it’s the ICT unit’s too.  .ICT Procurement Good Practices  As 3 the ICT unit. build a roster of reliable suppliers. Rate them periodically Feedback to Purchasing  Not just Purchasing’s job.

inspect the items (work with purchasing & property units) .ICT Procurement Good Practices 4  Procurement of ICTs: include the ICT unit in the process  Let the ICT unit review purchases. advise the BAC.

5 Equipment  ICT Procurement Good Practices include purchases: site prep. installation. testing & comm.  Good project packaging and specs design . training. tech support and maintenance.

 Good project packaging and specs design Have a holistic view of the procurement. training.5 Equipment  ICT Procurement Good Practices include purchases: site prep. installation. testing & comm. tech support and maintenance. .

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 7  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 8  Plan bulk purchases of PCs  There is strength in numbers  Trust branded PCs .

4. 5. 2. Clone? 1.Branded vs. 3.  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 .

 Ensure local tech support. .ICT Procurement Good Practices 9  PCs procured centrally but for distribution to different regions.

Replenishment costs will be lower.ICT Procurement Good Practices 10  AMAP. limit diversity among printers. .

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 Dept’s time  .

. and effort and reward.Pareto Principle  The 80/20 Principle:  inbuilt imbalance between causes and results. inputs and outputs.

Pareto Examples  80% computer’s time spent executing 20% of code  80% of world wealth owned by 20% of richest  80% of profits come from 20% of products sold .

Standard specs can be developed and updated periodically.  11  ICT unit should provide Purpose of use should dictate specs. .ICT Procurement Good Practices guidance in PC specs.

the higher the risk for failure. Keep this in mind: .ICT Procurement Good Practices  12  The higher the complexity of the procurement package.

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 …  .

it’s everybody’s business. accounting. . etc. ALSO property.  Not just IT and purchasing. Procurement is a process that cuts across different functions in the organization.ICT Procurement Good Practices  13  RA 9184 is not just BAC’s  Lastly… business. finance.

SARO-related issues ● Waiting game a cause of project implem delays SARO near-expiry … ● ● .

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Consider Total Cost of Ownership   Real cost of product is not just its purchase price. TCO: total acquisition cost and operating costs.e. backup power) Downtime. technology training Diminished performance (i. loss of reputation. diminished money-making ability) Security (including breaches.       Infrastructure (floor space) Electricity (for equipment. users having to wait. recovery and prevention) . cooling. outage and failure expenses Backup and recovery process.

.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 .

network infrastructure and PC workstations.Example 3  Procurement of a web-based application with servers. .

Tech Specs for Goods  (Servers) Consider. expansion capability  Packaging  . proc speed. if possible: Intended use and application  Minimum memory  Minimum disk storage  Connectivity  Backup  Performance (fault tolerance. availability.

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. security and auditability requirements . number of transactions to be handled Interfacing and interoperability requirements Compatibility.

Consulting TOR    Required expertise and minimum availability of expertise Expected outputs preferably with timetable TOR would normally contain:      Background Objectives. Scope of Services. Local Services. Personnel. Training (when appropriate) Reports & Time Scheulde Data. 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)  .

. 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 Sys Dev & Maint  Possible service levels will revolve around: Skill levels (i.e.

SLAs for Data Conversion  Possible service levels would involve: Accuracy  Turnaround time  Security/confidentiality of information  .

 Service escalation clauses which may include provision of service units and/or replacements  .SLAs for Repair & Maint  Typical service level metrics include: Availability  Location (on-site/walk-in)  Response times of tech support  Service/repair times.

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

 .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.

product.Strict Exemptions  May specify brand. . 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 .

 It takes… Clear understanding  It takes… Clear communication .In closing…  Even ICT projects suffer not just procurement problems but implementation problems.