Guidelines for preparation of a RFP for e governance projects


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This presentation constains guidelines that may be considered by Government Departments that wish to prepare RFP's for IT / e-Governance projects

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Guidelines for preparation of a RFP for e governance projects

  1. 1. Experience sharing on RFP preparation Anirban Mukerji [email_address] 0-98455 18520
  2. 2. Challenges <ul><li>Selection process should be deemed to be fair </li></ul><ul><ul><li>Should follow CVC guidelines </li></ul></ul><ul><li>Selection can be challenged in court </li></ul><ul><ul><li>This can delay implementation </li></ul></ul><ul><li>Most work complex unlike Public Works project </li></ul><ul><ul><li>Most projects one off not repeatable </li></ul></ul><ul><ul><li>Limited understanding of Government Staff </li></ul></ul><ul><ul><ul><li>Open standards vs. Open source, free software vs. open source </li></ul></ul></ul><ul><ul><li>Vendors extremely savvy </li></ul></ul><ul><ul><li>Subtle changes in Tender documents can lead to certain vendors being favored </li></ul></ul>
  3. 3. RFP writing process <ul><li>Initial brief note on the project </li></ul><ul><ul><li>What outcomes need to be achieved </li></ul></ul><ul><li>Evaluation of technology choices </li></ul><ul><ul><li>Centralised Architecture vs. Client Server </li></ul></ul><ul><ul><li>Thin Clients vs. PC’s </li></ul></ul><ul><ul><li>Wireless connectivity vs. Wired connectivity </li></ul></ul><ul><ul><li>Open source vs. proprietary software </li></ul></ul><ul><li>Each has implication on costs and technical performance and are not comparable </li></ul><ul><li>Combination of outcome orientation vs. detailed specification of each subcomponents </li></ul><ul><ul><li>Bangalore One – Service delivery metrics have been fixed , however hardware sizing has been left to vendor </li></ul></ul><ul><li>However if specs are not provided how will vendor achieve desired outcomes </li></ul>
  4. 4. Risk Factors <ul><li>Risk Factors should be articulated for each project </li></ul><ul><li>Some Sample Risk factors could be as following </li></ul><ul><ul><li>For e.g. for Akshaya Project of Govt. of Kerala </li></ul></ul><ul><ul><ul><li>The internet centre initially may be unviable and hence kiosk operator may not open the centre for most days </li></ul></ul></ul><ul><ul><ul><li>Kiosk operator may be untrained on use of computers </li></ul></ul></ul><ul><ul><ul><li>If Linux is specified as O/S not many people may know how to operate the system </li></ul></ul></ul><ul><ul><ul><li>In case e-Governance services are delivered from a portal connectivity may not be available for some time duration </li></ul></ul></ul><ul><ul><ul><li>Power issues </li></ul></ul></ul><ul><ul><ul><li>Ladies may feel unsafe in Kiosk as the centre is used as a club house for boys of the village </li></ul></ul></ul><ul><ul><ul><li>Inadequate support and hand holding for the kiosk operator </li></ul></ul></ul>
  5. 5. Risk Factors Contd.. <ul><li>Appointment of Consultancy organisation </li></ul><ul><ul><li>Consultants may not be placed in a timely manner </li></ul></ul><ul><ul><li>Risk Mitigation Strategy </li></ul></ul><ul><ul><ul><li>Penalty for delay in placement of consultants </li></ul></ul></ul><ul><ul><li>Time and Material project </li></ul></ul><ul><ul><ul><li>Consultancy organisation can show 2 months work for only one month work has been carried out. </li></ul></ul></ul><ul><ul><li>Risk Mitigation Strategy </li></ul></ul><ul><ul><ul><li>Have consultants work from defined government premises </li></ul></ul></ul>
  6. 6. Risk Factors Contd.. <ul><li>Appointment of Technical support engineers in District headquarters for Land Records computerisation project </li></ul><ul><ul><li>Rapid turnover of Engineers whenever they get a permanent job in Bangalore </li></ul></ul><ul><ul><li>Risk Mitigation Strategy </li></ul></ul><ul><ul><ul><li>Charge Rs. 50,000 from agency for turnover of Staff </li></ul></ul></ul><ul><li>Huge Risk of Bankruptcy of the Organisation during the Project Period </li></ul><ul><li>Technology Obsolescence – X Department purchased a Unix varient O/S which does not have widespread OEM hardware support </li></ul><ul><li>Software performance may degrade in 2-3 years time </li></ul>
  7. 7. Costing <ul><li>Have detailed realistic cost estimates </li></ul><ul><ul><li>Hardware </li></ul></ul><ul><ul><li>Software Licenses – Most licenses are processor based hence cost will increase when hardware is upgraded </li></ul></ul><ul><ul><li>Software development </li></ul></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><li>Data digitisation </li></ul></ul><ul><ul><li>Development of facilities ( front offices) </li></ul></ul><ul><ul><li>Manpower </li></ul></ul><ul><ul><li>Overheads </li></ul></ul><ul><li>Should be compared with Commercial bid and reasons for variance + ve or – ve ascertained </li></ul>
  8. 8. Components of RFP <ul><li>Scope of Work </li></ul><ul><ul><li>Needs to be as detailed as possible </li></ul></ul><ul><ul><li>Vendor will take advantage of vagueness in their favour </li></ul></ul><ul><ul><li>Vagueness in defining SOW may lead to good organizations thinking the project to be too risky and not participating </li></ul></ul><ul><ul><li>Winning party may have made a miscalculation and may delay delivery </li></ul></ul><ul><ul><li>Prepare the Scope of Work such that even if the most inelegible vendor wins the contract the work will be executed satisfactorily </li></ul></ul>
  9. 9. Timelines for Delivery <ul><li>Milestone wise timelines with penalties for delay in each component example of an existing project </li></ul>Sl No Milestone Time for Completion Penalty for delay 1 Signing of PPP agreement with successful bidder <ul><li>T1 </li></ul>- 2 Handing over of site <ul><li>T1+8 weeks </li></ul>3 Development of Application Software T1+14 weeks Rs X lakhs per every week of delay 4 Establishment of Centers, including Networking <ul><li>T1+14 Weeks </li></ul>Rs N lakhs per every week of delay 5 Testing & Certification of Software Solution T1+16 Weeks Rs M lakhs per every week of delay 6 Training T1+18 Weeks Rs Z lakh per every week of delay 7 System ready for launch (XX No. of Services at YYY No. Service Centers) T1+20 Weeks Rs Y lakhs per every week of delay
  10. 10. Payment Types <ul><li>Transaction wise payment </li></ul><ul><ul><li>Per Driving license </li></ul></ul><ul><ul><li>Per bill payment </li></ul></ul><ul><li>Paid by </li></ul><ul><ul><li>Citizen </li></ul></ul><ul><ul><li>Government </li></ul></ul><ul><li>Ultimately every thing is paid by the Government </li></ul>
  11. 11. Payment Models <ul><li>Lumpsum payment models </li></ul><ul><li>Deferred payment models </li></ul><ul><ul><li>Milestone based payment </li></ul></ul><ul><ul><li>Quarterly Guaranteed Revenue payment </li></ul></ul><ul><li>Each type has its advantages and disadvantages and relevant for particular types of work </li></ul><ul><li>Bangalore One </li></ul><ul><ul><li>Payment per transaction, incentive for the vendor to increase the number of transactions from the Bangalore One Centres </li></ul></ul><ul><ul><li>Disadvantage </li></ul></ul><ul><ul><ul><li>Low transaction services that are in public interest may not be provided by the Vendor </li></ul></ul></ul>
  12. 12. Duration of Contract <ul><li>Conscious decision needs to be taken </li></ul><ul><li>Very short term contracts </li></ul><ul><ul><li>1 year development , 1 year implementation + 2 year support and maintenance </li></ul></ul><ul><ul><li>will lead to again going to market after 4 years </li></ul></ul><ul><li>Most probably Government staff will extend contract on same terms and conditions </li></ul><ul><li>Long contracts 10 years, 15 years – Risk of technology obsolescence </li></ul>
  13. 13. Responsibilities <ul><li>Responsibilities of the various stakeholders need to defined in great detail </li></ul><ul><ul><li>Government </li></ul></ul><ul><ul><li>Vendor ( The Scope of Work would be the definition of the responsibilities of the Vendor) </li></ul></ul><ul><li>Responsibilities of other stake holders </li></ul><ul><ul><li>Both private and public involved in the project. </li></ul></ul><ul><ul><li>Bangalore One Project promoted by the e-Governance department but dependencies on many other Government Departments </li></ul></ul><ul><ul><ul><li>Electricity </li></ul></ul></ul><ul><ul><ul><li>Water </li></ul></ul></ul>
  14. 14. SLA’s <ul><li>SLA – Service Level Agreement </li></ul><ul><li>Against each deliverable of the vendor </li></ul><ul><ul><li>SLA during Implementation </li></ul></ul><ul><ul><li>SLA during Operation </li></ul></ul><ul><ul><li>Timeline and Quality of service needs to be mentioned </li></ul></ul><ul><ul><li>Penalty for not meeting SLA </li></ul></ul><ul><ul><li>Penalty for egregious breach of SLA </li></ul></ul><ul><ul><li>Termination of Agreement in case of continued breach of some SLA’s </li></ul></ul>
  15. 15. SLA’s need to be SMART <ul><li>Objective – Reach office 95% of days prior to 9.00 AM for January to December 2008 </li></ul><ul><li>vs </li></ul><ul><li>Come to Office on time </li></ul>S Specific Yes M Measurable Can be measured through electronic attendance monitoring system A Achievable Since it is 95% , probably can be achieved R Relevant Punctuality will improve the environment of the department T Timely Definition of time period Jan – Dec 2008
  16. 16. . Sample SLA Placement of required no. of HD1 counter operators as per specifications S No. Item Details 1 Definition of Service or additional explanation Counter operators will have the required qualifications, experience, training and will have qualified the test set by Dir. EDCS 2 Certifying authority Chairman HD1 CMC 3 Penalty for breach Rs. 250/- per day for shortfall of every operator 4 Material Breach Placement of less than 75% of the required operator strength even after 60 days of the timeline 5 Stipulated period for mitigating material breach conditions 30 days 6 Enhanced Penalty during stipulated period Rs. 500/- per day per operator 7 Remedial performance required for mitigating material breach conditions for non termination before the end of the stipulated period Placement of atleast 90% of the operators within stipulated period
  17. 17. RFP Components <ul><li>Pre qualification or eligibility criteria </li></ul><ul><ul><li>Financial capability </li></ul></ul><ul><ul><li>Prior similar project experience </li></ul></ul><ul><ul><li>Should have adequate justification why certain eligibility criteria is being proposed </li></ul></ul><ul><ul><li>Should follow CVC guidelines </li></ul></ul><ul><ul><li>Difficulty in formulating eligibility criteria when novel projects are being implemented </li></ul></ul>
  18. 18. CVC Guidelines <ul><li>Guidelines were prescribed in this office OM of even number dated </li></ul><ul><li>17/12/2002, on the above-cited subject to ensure that the pre-qualification criteria specified in the tender document should neither be made very stringent nor very lax to restrict/facilitate the entry of bidders. It is clarified that the guidelines issued are illustrative and the organizations may suitably modify these guidelines for specialized jobs/works, if considered necessary. However, it should be ensured that the PQ criteria are exhaustive, yet specific and there is fair competition. It should also be ensured that the PQ criteria is clearly stipulated in unambiguous terms in the bid documents. </li></ul><ul><li>Examples of Eligibility Criteria not meeting above guidelines </li></ul><ul><ul><li>MNC Brands for computers </li></ul></ul><ul><ul><li>Turnover much higher than the required </li></ul></ul><ul><li>For giving International services, only private airlines with more than 5 years track record were considered – Thus only JET airways qualified </li></ul>
  19. 19. Analysis of an IT tender The Content Service Provider (CSP) should have an established office in the State. Needed because close cooperation is required The CSP should be a financially sound registered company/society in India having minimum annual turnover of Rs. 2 Crore during any two of the last three financial years Should be linked to project cost The CSP should have minimum experience of 5 years in providing Content Development Services for websites/ portals /electronic publishing (CSP to provide documentary support). May be unnecessary because many new companies have come up that can provide good service <ul><li>The CSP should have executed minimum two projects with entire scope of work as per clause 3. CSP to furnish detailed information on both the projects as per Annexure-V along with work orders. </li></ul>Required as we want experienced parties <ul><li>The CSP should have relevant experience and understanding of the information and services of Government Domain. </li></ul>How is this defined <ul><li>CSP should have skilled/experienced Content Writers on its payroll (CSP to provide details as per Annexure III) </li></ul>How many Content writers, what skill level
  20. 20. Expression of Interest/ Request For Qualification <ul><li>Helpful to know number of parties interested in the project </li></ul><ul><li>RFQ can help in shortlisting of firms </li></ul><ul><li>Prospective bidders can know their competition and can give a serious bid </li></ul><ul><li>Evaluation of Prequalification norms takes 15 days or so, hence EOI or RFQ can be the first stage of the tender </li></ul><ul><li>As prospective bidders will know the competition, the bid price may be higher </li></ul>
  21. 21. Consortium bidding <ul><li>Required when diverse skills are needed </li></ul><ul><li>Bangalore One Project </li></ul><ul><ul><li>Implementation of Citizen Centres </li></ul></ul><ul><ul><li>Software Development </li></ul></ul><ul><li>Disadvantages </li></ul><ul><ul><li>Mostly ineligible firms team up with eligible firms. </li></ul></ul><ul><ul><li>Work is executed by the smaller firm </li></ul></ul><ul><ul><li>Issues in management of Consortium </li></ul></ul><ul><ul><ul><li>Over long duration of project, partners may fall out </li></ul></ul></ul><ul><ul><ul><li>Consortium partners may ask for replacement of one or more partners due to non performance </li></ul></ul></ul><ul><ul><ul><li>Responsibility needs to be fixed on Prime Partner </li></ul></ul></ul>
  22. 22. EMD / PBG <ul><li>Earnest Money Deposit </li></ul><ul><ul><li>Should be kept at 1-2% of estimated project value </li></ul></ul><ul><ul><li>Transparent mechanism for refund of EMD to unsuccessful bidders </li></ul></ul><ul><li>Performance Bank Guarantee </li></ul><ul><ul><li>PBG format should be included in the RFP </li></ul></ul><ul><ul><li>Successful bidder should submit PBG within x period of award of contract </li></ul></ul>
  23. 23. Bid Evaluation <ul><li>Technical Evaluation is used only for qualifying & final decision is on commercial </li></ul><ul><li>Quality cum Cost basis with weightage for both Technical and Commercial </li></ul><ul><li>Technical Bid </li></ul><ul><ul><li>Needs to be as detailed as possible </li></ul></ul><ul><ul><li>Evaluation should be objective </li></ul></ul>
  24. 24. Technical Bid <ul><li>Should consist of the following </li></ul><ul><ul><li>Previous experience of the bidder </li></ul></ul><ul><ul><li>Specific competencies that the Bidder will deploy for successful outcome of the project </li></ul></ul><ul><ul><ul><li>Additional Manpower </li></ul></ul></ul><ul><ul><ul><li>Specific technical competency </li></ul></ul></ul><ul><li>Technical bid should form part of deliverables of the successful bidder </li></ul><ul><li>Risk factors </li></ul><ul><ul><li>In many technical bid, the bidders give CV’s of personnel, but when bid is awarded claim that the personnel have left the firm. </li></ul></ul>
  25. 25. Evaluation <ul><li>Unambiguous evaluation </li></ul><ul><li>Intricacies </li></ul><ul><ul><li>In case of QCBS will normalization of Technical and Commercial bid be followed </li></ul></ul>
  26. 26. Supporting Infrastructure <ul><li>Project Management Office </li></ul><ul><ul><li>The task of the PMO is to manage the project post awarding of contract </li></ul></ul><ul><li>IIIrd party auditors </li></ul><ul><ul><li>To check compliance of the vendor to the RFP </li></ul></ul>
  27. 27. Pre bid Conference <ul><li>Important for interested parties to meet the department </li></ul><ul><li>Put forth their suggestion, queries regarding the tender document </li></ul><ul><li>Ask bidders to submit questions in advance </li></ul><ul><li>Pre bid queries need to be answered atleast 15 days prior to last date of submission of bid </li></ul>
  28. 28. Award of Work <ul><li>Definition to be clarified </li></ul><ul><ul><li>Letter of Intent </li></ul></ul><ul><ul><li>Government Order </li></ul></ul><ul><ul><li>Master Service Agreement with the successful bidder </li></ul></ul>
  29. 29. Master Service agreement <ul><li>MSA or contract with successful bidder </li></ul><ul><ul><li>All NISG RFP’s contain draft contracts </li></ul></ul><ul><ul><li>Most bidders don’t raise questions on MSA during pre bid but ask for changes once they win the contract. </li></ul></ul><ul><ul><li>MSA should incorporate </li></ul></ul><ul><ul><ul><li>Scope of Work from RFP </li></ul></ul></ul><ul><ul><ul><li>Technical bid of the successful bidder </li></ul></ul></ul>
  30. 30. Summary <ul><li>RFP / Tender is like a plan </li></ul><ul><li>Needs to be prepared with care </li></ul><ul><li>Will guide project implementation </li></ul><ul><li>In case of change of Project Implementation Staff , the only document that will guide successors </li></ul><ul><li>NISG has been a leader in preparing RFP’s for many government projects, hence these RFP’s can be used as template </li></ul><ul><li>Copy with PRIDE </li></ul>