Alt Methods Part 2 Distrib

8/4/2019 Alt Methods Part 2 Distrib

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Good PracticesGood Practicesin ICT Procurementin ICT Procurement

under RA 9184under RA 9184

rogelio vicente juan o. morales

[email protected]


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Public perception: Computerization slows down

work processes.

Govt ICT Procurements

DFA

LTO

LRA

POEA

GSIS

COMELEC


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ICT Hardware Items

Description

1. Computing DevicesDesktop PCs/Laptops/TabletsServers

2. Networking DevicesWired routers and switchesWireless 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


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ICT Software Items

Description

1. Operating Systems

2. Office Productivity (i.e., MS Office)3. Specialized Software

GIS, CAD, MultimediaEnterprise/Supply Chain/CR Mgt Sys

4. Databases5. Systems & Network Mgt


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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


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ICT-related ServicesDescription

1. Anti-virus subscriptionEnd-point (various)

Device specific (e.g., routers)2. Tech Support & Preventive Maint

Hardware: PCs, printers, network

3. Tech Support & Preventive MaintS/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


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4 Trends in ICT & Govt

1. ICT cost/power ratio israpidly going down.

2. Demand for qualityservices increasing butthe number of people todeliver them remainsthe same.


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4 Trends in ICT & Govt

3. ICT personnel in govt arebecoming a very scarce

resource.4. Imperative for GOs to

deliver the services yetoperate in a sustainablemanner


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ICT ProcurementGood Practices

Why not best

practices?Why good practices?

Situations change

Systems change

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Technical capability: dont

build it, buy it.Techs change so fast.

Instead, build Project Mgtand leadership/supervisoryskills.

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Introducing a

paradigm shift forthe ICT unit: From ICT Specialists

to ICT Project Managers

Certified:

LEAN but MEANLEAN but MEANICT unit


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Keep in mind

The more a firm strivesfor self-sufficiency, thelarger it becomes. Task of mgt increasing in

complexity and diversity.

Brings back the issue of strategicintent


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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 ofcustomizing. If more than the OTS cost,

build.


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Test: Goods or Services?

Anti-virus software

Operating systems

PC & printer maintenance contract

ERP software

RDBMS software


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Make ICT proc plansharmonize with APP. Why we have ISPs

ICT is cross-cutting in all functions ofthe organization.

One or more project may share thesame ICT resource/infra

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As the ICT unit, build a rosterof reliable suppliers. Rate

them periodically Feedback to Purchasing

Not just Purchasings job, its the ICT

units too.

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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 & propertyunits)

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Equipmentpurchases: include site prep, installation,

testing & comm,training, tech supportand maintenance.

Good project packagingand specs design

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Equipmentpurchases: include site prep, installation,

testing & comm,training, tech supportand maintenance.

Good project packagingand specs design

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Have a holistic viewof the procurement.


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Feasibility studies are aseparate procurementactivity Serves to inform decision-making

Example: solution design selection This process is variable

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Repeat order: should beexception, not practiceCase: each functional unit in the

agency makes its own purchases.ICT unit should assert function

Indicates lack of planning

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Plan bulk purchases of PCs There is strength in numbers

Trust branded PCs

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Branded vs. Clone?

1. Product Warranty

2. Manufacturer Source

3. Service Availability

4. Product Reliability

5. Maintainability (by Tech Support) If you must buy clone make sure a

supplier can closely match the warrantyof a branded


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PCs procured centrally butfor distribution to different

regions.Ensure local tech support.

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AMAP, limit diversity among

printers. Replenishmentcosts will be lower.

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Case of Printer Inks

Relationship between

Procurement ProcessAND Printer Ink type

Inks for small users(small quantities of different

types) could cause most ofPurchasing Depts time


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Pareto Principle

The 80/20 Principle: inbuilt imbalance betweencauses and results, inputs andoutputs, and effort and

reward.


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Pareto Examples

80% computers time spentexecuting 20% of code

80% of world wealth ownedby 20% of richest

80% of profits come from20% of products sold


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ICT unit should provide

guidance in PC specs. Purpose of use should dictate specs.Standard specs can be developed andupdated periodically.

1111


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Keep this in mind:

The higher the complexityof the procurementpackage, the higher the

risk for failure.

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What to do?

Do a reality check

Stricter penalty clause

Well-defined SLAs But ensure enforcement!!!

Limit bid to a minimum number ofqualified suppliers


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Lastly

RA 9184 is not just BACsbusiness, its everybodysbusiness. Not just IT and purchasing, ALSO property,

finance, accounting, etc.

Procurement is a process that cuts acrossdifferent functions in the organization.

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SARO-related issues

Waiting game a cause ofproject implem delays

SARO near-expiry


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Consider Total Cost ofOwnership

Real cost of product is not just its purchaseprice.

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)


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Example 1

Procurement of outsourced networkmanagement service which includes

the delivery/installation of a networkmanagement system and server on-site.


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Example 2

Procurement of a turnkey solutionusing the services of a Systems

Integrator


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Example 3

Procurement of a web-basedapplication with servers, network

infrastructure and PC workstations.


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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, expansioncapability

Packa in


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Tech Specs for Goods

(Software) usually provide the ff: Mode of operation/gen system archi

Functional requirements, preferably detailedenough to the point of identifying all inputsand outputs

Intended number of users

Est. number of transactions to be handled Interfacing and interoperability requirements

Compatibility, security and auditabilityrequirements


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Consulting TOR

Required expertise and minimumavailability of expertise

Expected outputs preferably withtimetable

TOR would normally contain: Background

Objectives, Scope of Services, Training (when appropriate)

Reports & Time Scheulde

Data, Local Services, Personnel, and Facilitiesto be provided by procuring entity


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SLAs forOutsourced 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)


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f


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SLAs forData Conversion

Possible service levels wouldinvolve:

Accuracy Turnaround time

Security/confidentiality of information

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SLAs forRepair & Maint

Typical service level metrics include: Availability

Location (on-site/walk-in) Response times of tech support

Service/repair times,

Service escalation clauses which mayinclude provision of service units and/orreplacements


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GPRA Principles

Technology neutralitycompetitiveness by extending equal

opportunity to enable privatecontracting parties who are eligible andqualified to participate in publicbidding.

Procurement based on objectivestandards


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GPRA Principles

Brand names Sec 3: the procurement process shall

be made simple and made adaptable toadvances in modern technology inorder to ensure an effective andefficient method.

4 justifications by way of strictexception.


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Strict Exemptions

May specify brand, product, orstandard names provided that it

allows for functional equivalentsthru addition of the words: or substantially equivalent

Wherein it means operationally andfunctionally interchangeable.


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Successful ICT Proc

Well-written TOR is aSMART TORScope and Deliverables

Timetables

CostQuality


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Alt Methods Part 2 Distrib

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