Presentation on Electronic Tendering to the Information Infrastructure

Presentation on Electronic Tendering to the Information Infrastructure Advisory Committee Friday 29 September 2000 Ms Joyce Tam, Principal Assistant Secretary for Information Technology and Broadcasting

Goals of E-tendering Through E-tendering, we aim - • To promote the wider use of IT and e-commerce with Government taking the lead • To extend the reach of tender invitation so as to obtain more competitive offers • To streamline the Government procurement process 2

Tender Boards Government procurement authorities Central Tender Board Secretary for the Treasury Above prescribed limits of other tender boards GSD Tender Board Public Works Tender Board Deputy Director of Government Supplies Deputy Director of Architectural Services Not exceeding $10 M Not exceeding $30 M Marine Dept. Tender Board Deputy Director of Marine Not exceeding $5 M Printing Dept. Tender Board Government Printer Not exceeding $5 M 3

Breakdown of Contract Types Number of contracts 4

Breakdown of Contract Types Contract value

E-tendering for Works Contracts Characteristics of works contracts • Fewer contracts, but high contract value and more parties involved • Bulky tender document and proposal • Special technical requirements on electronic file format (e. g. plans, technical drawings, etc. ) • Relatively confined group of suppliers • Industry practices 6

E-tendering for Works Contracts Stage 1 Survey on Electronic Tendering • A survey was conducted by the Hong Kong Productivity Council (HKPC) in early 2000 • Major findings include – • 83% of the firms supported E-tendering and intend to participate • 56% of the firms perceived savings in operational expenditure with E-tendering • Estimated total savings in the industry can reach $33 million per annum • Major concerns include security, confidentiality, authentication, virus attack and legal issues 7

E-tendering for Works Contracts Stage 2 Electronic Dissemination of Tender Documents by CD-ROM • Started 25 August 2000 for all public works contracts. • Distribution of electronic files containing the contents of tender documents • Distribution of hard copy documents continues • Specified formats for electronic files • Internet dissemination to be considered in due course 8

E-tendering for Works Contracts Stage 3 Electronic Submission of Tenders • Currently being studied. • Implementation framework to be delivered in early 2001. 9

E-tendering for Works Contracts Beyond Stage 3 Electronic Service Delivery (ESD) for Works Project • Works Bureau to conduct a consultancy study on ESD for works project. The study will commence in late 2000 and take one year to complete. • Possible ESD applications - • Electronic exchange of planning and design information in feasibility study and design; • Electronic exchange of utilities information; • Electronic tendering • Electronic contract administration 10

Future Directions • to extend ETS to cover non-works contracts of higher value • to extend ETS for use by other Government agencies • to consider E-tendering for works contracts • to consider other E-procurement initiatives 11

Thank you