Ms Joyce Tam, Principal Assistant Secretary for Information Technology and Broadcasting

1. 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

2. 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

3. Marine Dept. Tender Board Central Tender Board Printing Dept. Tender Board Government Printer Secretary for the Treasury Deputy Director of Marine Not exceeding $5M Not exceeding $5M 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 $10M Not exceeding $30M Tender Boards Government procurement authorities 3

4. Breakdown of Contract Types Number of contracts 4

5. Breakdown of Contract Types Contract value

6. 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

7. 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

8. 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

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

10. 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

11. 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

12. Thank you