[PPT] - LBD ICT SLIDES FOR INDUSTRY ENGAGEMENT DIGITAL NATION DIVISION PowerPoint Presentation

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LBD ICT SLIDES FOR INDUSTRY ENGAGEMENT

DIGITAL NATION DIVISION MINISTRY OF ENERGY, MANPOWER AND INDUSTRY AUGUST 2018

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LBD ICT Implementation Date It has superseded the ICT Accredited

Business (ICTAB), an initiative by AITI.

LBD policy implementation for ICT Industry has taken into effect on 1st March 2017.

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LBD Policy Framework for 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

pportunities for local suppliers in the ICT sector.

Objective is to maximise local content through greater participation of capable local ICT companies and workforce in the Government projects. Focus is on ensuring development of local skilled workforce and foster creation of local Intellectual Property (IP) in the ICT industry. This initiative is in line with LBD policy implemented in another industry under Ministry

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Energy, Manpower and Industry.

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LBD ICT Stakeholders

Project Owners and Managers ICT Companies

participating in Government ICT projects

Project Owners and Managers

Government ministries & agencies executing ICT projects

GLCs (next phase)

Implementing ICT projects

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LBD Quadrant: Allocation of Projects, Targets and 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

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

Each Quadrant have two (2) features

which determine the eligibility of contractors to participate in the tender: I. Types of Business II. Size of Business

Each Quadrant also specifies a Target

Local Skilled Workforce that contractors must include in their proposals. Important Note: Data gathered from Business Reporting (BR) Portal.

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LBD Quadrant Work Categories in Government ICT Contracts

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 API/Direct

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 API/Direct

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 Criteria in Government ICT Contracts

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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LBD Target in Government ICT Contracts

Project Owners/Managers and/or Project Review Committee (PRC)

chaired by E-Government National Centre (EGNC) are required to set the LBD quadrant for all ICT projects.

LBD targets specified in the contract shall include:
Increase in number of local skilled workforce
Recruitment of local employees
Training of local employees
Local content spending
Contractors shall complete all LBD requirement specified in the

contract and endeavor to reach the target Local Skilled Workforce specified in the projects’ LBD quadrant.

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LBD ICT Requirements for Government ICT Contracts

All companies intending to participate in a Government ICT Contract must MEET all the eligibility requirements as stipulated in a Government tender. These requirements include the following: 1. The company must registered and reported latest business data in Business Reporting (BR) Portal PRIOR to participate Government ICT tender.  BR Portal: http://business.gov.bn/SitePages/OBR.aspx 2. Size of Business (Assess from the company’s BR Data) – Based on total number of local and non-local employees working in the company. Tender will specify if a business size must be either of the following:  Micro: 1 to 4 employees  Small: 5 to 19 employees  Medium: 20 to 99 employees  Large: 100 and above employees 3. Type of Business (Assess from the company’s BR Data) - Tender will specify if a business type must be either of the following:  Sole Proprietorship  Partnership  Private Limited Companies  Foreign Registered Company IMPORTANT NOTE: All companies are advised to ensure that the company MEETS all the LBD eligibility requirements BEFORE purchasing a tender.

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LBD ICT Project Workflow

Contractor Project Owner Project Review Committee Digital Nation Division (DND), MEMI

Pre-Tender Tender Evaluation & Award Implementation Completion

Register and/or update Business Reporting (BR) ICT Project Start - Set LBD Quadrant Advertise/Release Tender with LBD Quadrant, Type and Size of Business Specified Propose LBD Plan to reach Targets and Milestones Specified Evaluate and Recommend Award Receive project update report from Project Owner Contractor and Project Owner via Tender Review Committee agree to LBD targets & milestones in Project Contract Provide regular updates in Business Reporting (BR) Report Compliance in every milestones Close reporting upon satisfactory achievement

f LBD Targets

Verify and submit report in every milestones Receive report in every milestones

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LBD Compliance and Monitoring Process

PROJECT STAGE ACTION ITEM ACTION PARTY Register and/or update Business Reporting (BR) Portal. PRE-TENDER 1 Contractor/Company Propose LBD plan to reach target local skilled workforce and milestones specified in LBD Framework. TENDER 3 Contractor/Company Evaluate & assess the local content proposal by Contractors/Company. EVALUATION 4 Tender Review Committee Agree to the targets & milestones defined in project contract. AWARD 5

Contractor/Company, Project Owner/Manager via Tender Review Committee

Report compliance to local content to the Project Manager at every milestone of project. IMPLEMENTATION 6 Contractor/Company Verify and submit report at every milestone to DND. 7 Project Manager Provide updates in Business Reporting (BR) at every milestone. 8 Contractor/Company COMPLETION 9 DND, MEMI Close reporting upon satisfactory achievement

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LBD targets. Determine the quadrant of the project. 2 Project Owner/Manager and/or Project Review Committee

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LBD Pre-Tender Stage

PROJECT STAGE ACTION ITEM ACTION PARTY Register and/or update Business Reporting (BR) Portal PRE-TENDER 1 Contractor / Company Determine the quadrant of the project. 2 Project Owner/Manager and/or Project Review Committee Business Reporting (BR) Portal: http://www.business.gov.bn/SitePages/ OBR.aspx LBD Quadrant:

Basic
Specialised
High Volume
Highly Specialised

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

1 2

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LBD Tender Stage

PROJECT STAGE ACTION ITEM ACTION PARTY Propose LBD plan to reach target local skilled workforce and milestones specified in LBD Framework.

TENDER

3 Contractor/Company LBD plan should be embedded in the Government ICT contracts.

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LBD Evaluation Stage

PROJECT STAGE ACTION ITEM ACTION PARTY Evaluate & assess the local content proposal by Contractor/Company. EVALUATION 4 Tender Review Committee Determine the quadrant of the project, targets and milestones. Project Owner & EGNC

Example proposed LBD ICT Plan for a Specialized Quadrant:

Target of Local Skilled Workforce shall be specified in

a contract by the PM (i.e. 70%) .

Participating Contractor/Company

proposed Target Local Skilled Workforce by the end of the contract is 71%.

The assessment result is LBD complied as the

proposed target meet the actual LBD target.

Although there are no Targets for Administrative

employees, Contractor/Company are required to fill in recruitment and up-skilling

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local and foreign Administrative workforce.

Example: Contractor’s LBD ICT target proposal

Important Note: ICT local skilled workforce shall only

reflects the number of employees involved in the contract.

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LBD Award Stage

PROJECT STAGE ACTION ITEM ACTION PARTY Agree to the targets & milestones defined in project contract. AWARD 5

Contractor/Company, Project Owner/Manager via Tender Review Committee

Once Contractor/Company has been awarded, the Project Manager has to initiate LBD Reporting to DND by emailing to: lbd.ict@memi.gov.bn

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LBD Compliance and Monitoring Process

PROJECT STAGE ACTION ITEM ACTION PARTY Report compliance to local content to the Project Manager at every milestone of project. IMPLEMENTATION 6 Contractor/Company Verify and submit progress report at every milestone to DND. 7 Project Manager Provide updates in Business Reporting (BR) at every milestones. 8 Contractor/Company

Contractors are required to submit LBD Progress

Report to PMs at every milestones specified in the particular contract.

PMs shall monitor the contractor LBD Progress

Report by assessing the actual Local Skilled Workforce and target Local Skilled Workforce specified at every milestone.

PMs shall submit the contractor’s LBD Progress

Report to DND by emailing to lbd.ict@memi.gov.bn

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LBD Compliance and Monitoring Process

PROJECT STAGE ACTION ITEM ACTION PARTY COMPLETION 9 DND, MEMI Close reporting upon satisfactory achievement

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LBD targets.

Contractors

shall submit LBD Closing Report to PMs at the end

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PMs shall assess the contractor

LBD Closing Report that are the actual Local Skilled Workforce and target Local Skilled Workforce specified at the end

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the contract.

PMs shall submit the contractor’s

LBD Closing Report to the DND by emailing to lbd.ict@memi.gov.bn

If the contractor failed to provide

valid justification for unachieved LBD target during Muzakarah session, the contractor is exempted to participate in any future Government ICT contract.

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THANK YOU

FOR YOUR KIND ATTENTION

For enquiries and further information: lbd.ict@memi.gov.bn 2380333 ext. 3271/3251 Nurnadzirah Anati binti Abdul Rahim Siti Nur Hayati binti Abdul Ghani