Ms Joyce Tam, Principal Assistant Secretary

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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

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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

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Tender Boards
Government procurement authorities
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Breakdown of Contract Types
Number of contracts
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Breakdown of Contract Types
Contract value
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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

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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

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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

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E-tendering for Works Contracts

• Stage 3
• Electronic Submission of Tenders
• Currently being studied.
• Implementation framework to be delivered in early
  2001.

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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

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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

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• Thank you