LBD ICT SLIDES FOR INDUSTRY ENGAGEMENT DIGITAL NATION DIVISION MINISTRY OF ENERGY, MANPOWER AND INDUSTRY AUGUST 2018 1
LBD ICT Implementation Date LBD policy implementation for ICT Industry has taken into effect on 1 st March 2017. It has superseded the ICT Accredited Business (ICTAB), an initiative by AITI. 2
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 opportunities 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 of Energy, Manpower and Industry. 3
LBD ICT Stakeholders ICT Companies participating in Government ICT projects Project Owners and Managers Project Owners and Managers Government ministries & agencies executing ICT projects GLCs (next phase) Implementing ICT projects 4
LBD Quadrant: Allocation of Projects, Targets and Features Complexity Each Quadrant have two (2) features which determine the eligibility of SPECIALISED HIGHLY SPECIALISED contractors to participate in the tender: I. Types of Business : Micro, Small and Medium : Medium and Large II. Size of Business : LC : Foreign Registered Each Quadrant also specifies a Target : SP, P and LC Companies Local Skilled Workforce that contractors must include in their : 70% : 50% proposals. Requires specialized skills and ability of Requires highly specialized skills, vast Important Note: Data gathered from companies to develop, operate and experience and ability of companies to Business Reporting (BR) Portal. maintain complex ICT systems and develop, operate and maintain highly services. complex ICT systems and services. LEGEND BASIC HIGH VOLUME : Size of Business : Micro and Small : Small and Medium : Type of Business Target Local Skilled : SP, P and LC : LC : Workforce involved in the project / activities SP : Sole Proprietorships : 100% for projects < BND 100,000 P : Partnerships : 80% : 90% for projects ≥ BND LC Limited Companies : 100,000 1 – 4 employees Micro: 5 – 19 employees Small: Requires company with little or less Requires company to handle huge 20 – 99 employees Medium: experience to execute low risk and less requests of ICT projects and services Large: >100 employees complex projects. which are less complex. Project Value BND 250,000 5
LBD Quadrant Work Categories in Government ICT Contracts Complexity SPECIALISED HIGHLY SPECIALISED 1. Infrastructure (hardware and software) 1. Infrastructure (hardware and software) 1.1 Servers 1.1 Servers 1.2 Storage 1.2 Storage 1.3 Network 1.3 Network 1.4 Data Centre 1.4 Data Centre 2. Development (non-standard platform) 2. Development (non-standard platform) 2.1 Application 2.1 Application 2.2 Mobile (with Back-end) 2.2 Mobile (with Back-end) 2.3 Enterprise Database 2.3 Enterprise Database 2.4 Multimedia (CGI and/or 3D) 2.4 Multimedia (CGI and/or 3D) 3. System Integration 3. System Integration 3.1 Security 3.1 Security 3.2 Identity / Authentication 3.2 Identity / Authentication 3.3 API/Direct 3.3 API/Direct 4. Technical Training 4. Technical Training 5. Technical Support 5. Technical Support 6. Procurement 6. Procurement 6.3 Specialised Hardware 6.1 Specialised Hardware 6.4 Specialised Software 6.2 Specialised Software BASIC HIGH VOLUME 1 Development (standard platforms) 1. Development (standard platforms) 1.1 Web 1.1 Web 1.2 Mobile (static) 1.2 Mobile (static) 1.3 Multimedia (2D animation) 1.3 Multimedia (2D animation) 1.4 Database (simple) 1.4 Database (simple) 2 End-User Training 2. End-User Training 3 End-User Support 3. End-User Support 4 Procurement (minimal quantity) 4. Procurement (high quantity) 4.1 Standard Hardware 4.3 Standard Hardware 4.2 Standard Software 4.4 Standard Software Project Value BND 250,000 6
LBD Quadrant Criteria in Government ICT Contracts Complexity SPECIALISED HIGHLY SPECIALISED 1. Principle OEM 1. License Partner 2. Closed platform 2. Open/Standard platform 3. Complex services 3. Local services support still available through partners 4. High level of investment/risk 4. High level of investment/risk 5. Involves Enterprise technology 5. Involves Enterprise technology 6. Requires vast management experience 6. Opportunity for technology transfer 7. Opportunity for technology transfer 7. Opportunity for local training BASIC HIGH VOLUME 1. Simple services 1. Simple services 2. Utilize EGNC readily available platform 2. Utilize EGNC readily available platform 3. Supply of items readily available in local 3. High supply of items in local/external market market 4. Low risk 4. Low/High risk 5. Low involvement of Enterprise technology 5. Requires vast management experience 6. Less technical/management experience 6. Opportunity for local training 7. Opportunity for local training Project Value BND 250,000 7
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. 8
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 Size of Business (Assess from the company’s BR Data) – Based on total number of local and 2. 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 Type of Business (Assess from the company’s BR Data) - Tender will specify if a business type 3. 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. 9
LBD ICT Project Workflow Project Review Digital Nation Division Contractor Project Owner Committee (DND), MEMI Pre-Tender Register and/or update ICT Project Start - Set LBD Business Reporting (BR) Quadrant Tender Advertise/Release Tender Propose LBD Plan to with LBD Quadrant, Type reach Targets and and Size of Business Milestones Specified Specified Evaluation & Award Receive project update Evaluate and Recommend report from Project Owner Award Provide regular Contractor and Project Owner via Implementation updates in Tender Review Committee agree to Business LBD targets & milestones in Project Reporting (BR) Contract Receive report in every Verify and submit report in Report Compliance in milestones every milestones every milestones Completion Close reporting upon satisfactory achievement of LBD Targets 10
LBD Compliance and Monitoring Process PROJECT STAGE ACTION PARTY ACTION ITEM 1 Register and/or update Business Reporting (BR) Portal. Contractor/Company PRE-TENDER Project Owner/Manager Determine the quadrant of the project. 2 and/or Project Review Committee Propose LBD plan to reach target local skilled workforce and Contractor/Company TENDER 3 milestones specified in LBD Framework. Tender Review Evaluate & assess the local content proposal by EVALUATION 4 Contractors/Company. Committee Contractor/Company, Project Agree to the targets & milestones defined in project AWARD 5 Owner/Manager via Tender contract. Review Committee Report compliance to local content to the Project Manager Contractor/Company 6 at every milestone of project. Verify and submit report at every milestone to DND. IMPLEMENTATION Project Manager 7 Provide updates in Business Reporting (BR) at every Contractor/Company 8 milestone. Close reporting upon satisfactory achievement of LBD DND, MEMI COMPLETION 9 targets. 11
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