e. talero - 11-11-04ifmis workshop - nairobi 1 ifmis implementation workshop effective ifmis...

E. Talero - 11-11-04 IFMIS Workshop - Nairobi 1

IFMIS Implementation Workshop

Effective IFMIS Procurement and Management of Consultants

Eduardo TaleroSenior E-Government Consultant - The World Bank

(Retired)

Nairobi, November 11, 2004


9-15 months 6 months

Develop Functional/Technical Specifications

Advertise and receive bids

Prepare Bidding documents

Evaluate bids

Award contract

4-5 months 2 months 21-28 months

3-5 months 3 months3-4 months 2 months 11-14 months

Best case

Possible?

IFMIS PROCUREMENT IN AFRICA


OVERVIEW

How to be effective in IS procurement (and minimize headaches)

How to get maximum value from consultants

How to deal with the World Bank to prevent delays


Effective Procurement (or how to minimize headaches)

Acknowledge complexity Find the right skills & organize the

work Develop a sound strategy Manage timetable effectively Follow sound bid evaluation method Develop a smart, fair contract


The procurement process is difficult because

It is a heavily regulated, competitive process

It has antagonistic stakeholders It is complex and deals with high

stakes. It is corruption prone. It often has conflicting objectives.


Competitive Procurement

TRANSPA-RENCY

Potentially conflictive objectives in competitive procurement

ECONOMY


Competitive Procurement

TRANSPA-RENCY

Potentially conflictive objectives in competitive procurement

EFFICIENCY


IS Procurement is even more difficult because of:

Diverse, complex technical content Interdependency with organizational

& social dynamics Value from the whole, not the parts Mix of intellectual services & supply

of goods. High failure rate of IS Projects


Technology. (Goods)

Intellectual Services (Consultants)

Working Systems (IFMIS)

“DESIGN” RISK Supplier Client Shared

CSFs Tech. Specs Logistics

Prof. Expertise Communications

Prof. Expertise Process Mgmt.

QUALFICATION CRITERIA

Ability to supply

Fin. strength

Credentials Track record

Financial /operational capabilities

Track record Credentials

EVALUATION CRITERIA

Price Quality of

M&S

Quality of Proposal

Expertise Price

Quality of Proposal Expertise Price

PAYMENT TRIGGER

Delivery Work done

Acceptance of Deliveries

Procurement profiles



work Design a sound strategy Manage timetable effectively Follow sound bid evaluation method Develop a smart, fair contract

Effective procurement (or how to minimize headaches


Find the right skills & organize the work

Skill requirements: Domain knowledge: public accounting,

budgeting and treasury management. Expertise in management of IS projects Information technology knowledge Contracting knowledge Procurement knowledge

Effective procurement requires organized teamwork: authorities, responsibilities, schedule, resources.




work Develop a sound strategy Establish feasible timetable Follow sound bid evaluation method Develop a smart, fair contract


Develop a sound strategy

Understand the solution market Consult with peer network Choose a packaging option Choose a process option Set a timetable


Supply & Maintenance of Technology

System Engineering/ Integration

Independent Audits

RFI & Pre-Qualification

Phase IIProject Strategy &

System Requirements

Phase I

System Engineering

Phase III

Implementation

Phase IV

Maintenance

Phase V

System Specification & Project Mgmt.

PROJECT PHASE

PROCUR. TRACK

Key: Competitive Bidding Packaging Option

Conflict of Interest

Consulting Services Supply &Maintenance System Engineering

Ponder packaging options carefully (1)




Independent Audits



System Requirements

Phase I

System Engineering

Phase III

Implementation

Phase IV

Maintenance

Phase V


PROJECT PHASE

PROCUR. TRACK



Consulting Services

Integration

Ponder packaging options carefully (2)


Choose between single and 2-stage process

Single stage when: Possible solutions are well known Outsourcing is not an option Procurement complexity and risk are moderate

Two stage when: Possible solutions are poorly known Outsourcing of operation or ownership is an

option Large scope or complexity pose excessive risks




work Develop a sound strategy Establish feasible timetable Follow sound bid evaluation method Develop a smart, fair contract


At least a monthTime

Engineer system

Document System

Deliver test Hw/OS

Acceptance End rollout

Train users

Run Acceptance Tests

Deliver rollout Hw/OS

Begin Testing

Establish feasible timetable

Deliver pilot Hw/OS

Conduct pilot

Rollout system

End Pilot


Follow sound bid evaluation method (1)

Assemble a team beyond reproach Decide what features to evaluate Beware of evaluation tradeoffs Focus on features with high

discerning value Leave room for exercise of

judgment



Define & test the point/weight scheme

Plan effective system demonstrations

Carry out & document evaluation Keep evaluators to what they know Iterate evaluation rounds to achieve

consistency


Decide what features to evaluate

Known Un-known

Needed Unacceptable

Desirable

Undesirable

M

M

S +E

S +E

E

E

E

E


Beware of tradeoffs in quality evaluation

Importance of Quality Evaluation

Level of competition

Range of solutions considered

Precision of qualification requirements

Precision of Technical Specifications


Illustrative Top Level Scoring Table

Note: See IT Procurement Technical Note 10 at www.worldbank.org, procurement

Criterion Criterion1 Criterion 2 Criterion 3 Criterion 4 Total (Maximum)

Weight 40 20 20 20 100 Scores and Weight points [1] -10 -5 -5 -5

[2] 0 0 0 0

[3] 20 10 10 10

[4] 40 20 20 20 100


Evaluation Criteria

1: Quality of proposed solution

2: Bidder's expertise, performance record, business risk profile.

3: Quality of implementation plan and knowledge transfer strategy

40%

4: Quality of proposed technical environment. - Technical Risk Profile

Weight

20%

30%

10%

Illustrative Evaluation Criteria for IFMIS Contract

Note: See IT Procurement technical note 10 at www.worldbank.org, procurement



Define & test the point/weight scheme Plan effective system demonstrations Carry out & document evaluation Keep evaluators to what they know Iterate evaluation rounds to achieve

consistency Evaluate lifecycle costs


Plan effective system demonstrations

Choose one of two objectives: Evaluate attributes of proposed solution Build and evaluate a prototype solution

Predefine standard protocol Require PM to lead demonstration Watch for presentation order bias Iterate to ensure evaluation consistency Lower compliance cost to bidders



Define & test the point/weight scheme Plan effective system demonstrations Carry out & document evaluation Keep evaluators to what they know Iterate evaluation rounds to achieve

consistency Evaluate lifecycle costs


Develop a smart, fair contract (1)

Make contractor responsible for solving your business problem despite specification error or omission

Spell out client’s obligations and fulfill them.

Require formal work methodology Pay against intermediate deliverables



Define the acceptance test protocol Test all the human/data/process

aspects before acceptance Do system stress tests Define the rollout protocol Define rollout readiness indicators



Leave flexibility in rollout schedule Demand industry-standard

documentation



Retain host computer flexibility Guard against default expiration of

licenses Consider concurrent user licenses Forbid cross-licensing conditions Disallow unilateral revocation of SLA,

disabling or impairment of system operation.

Software License Agreements (1)



Require manufacturer’s authorization and concurrence on supplier’s SW licensing obligations.

Supplier must support an old version 24 months after new one is received by client.

If a new version causes problems, supplier must support the prior version until problems are solved.

Software License Agreements (2)



Develop good M & S contract:

Ask for proof of local capability Commit M & S supplier for 5+ years Keep client’s right to exit after 1 year Block effectiveness of supply contract

until M&S contract is signed Retain performance security until

delivery capacity is verified.


OVERVIEW

How to be effective in IS procurement (and minimize headaches)

How to get maximum value from consultants

How to deal with the World Bank to prevent delays


Consultants: How to get maximum value (1)

Rely on peer network to: Identify skill / experience requirements Develop TOR. Develop candidate shortlist

Expect bias and neutralize through TOR

Watch out for conflict of interest rules




Independent Audits



System Requirements

Phase I

System Engineering

Phase III

Implementation

Phase IV

Maintenance

Phase V


PROJECT PHASE

PROCUR. TRACK



Possible Contractor Continuation

Consulting Services Supply &Maintenance System Engineering

Complex IS Procurement – Specify and Engineer Option



Define time and residence requirements for key personnel

Define knowledge transfer indicators Evaluate communication, social skills Use contract management

instruments consistently and forcefully

Control staff replacements



Brief/induct consultants thoroughly Control incidental costs separately Pay attention to fairness Do not expect fire fighting miracles Pay on time Manage client-side obligations


Dealing with the World Bank (1)

WB not staffed for major technical reviews Fiduciary responsibility imposes

constraints. Key recommendation: avoid triggering

reviews. Consequently, engage expert procurement

advice during process. You are the client. Do not hesitate to

complain.


Dealing with the World Bank (2)

Do not hesitate to ask for reasonable, well justified exceptions. Better evaluation formula Relief from COI provisions for pilot

consultants Justified sole sourcing decisions


Possible World Bank support

To develop and nurture IFMIS network

To develop baseline system requirement specifications

To analyze and compare technology licensing terms


9-15 months 6 months

Develop Functional/Technical Specifications

Advertise and receive bids

Prepare Bidding documents

Evaluate bids

Award contract

4-5 months 2 months 21-28 months

3-5 months 3 months3-4 months 2 months 11-14 months

Best case

Possible?

IFMIS PROCUREMENT IN AFRICA


THANK YOU

e. talero - 11-11-04ifmis workshop - nairobi 1 ifmis implementation workshop effective ifmis...

Documents

delayseffective procurement

sound strategyunderstand

right skills

evaluation methoddevelop

feasible timetablefollow

project phaseprocur

months3 months3

packaging optionchoose