LBD ICT SLIDES FOR INDUSTRY ENGAGEMENT

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LBD ICT SLIDES FOR INDUSTRY ENGAGEMENT

DIGITAL NATION DIVISION

MINISTRY OF ENERGY, MANPOWER AND INDUSTRY

AUGUST 2018

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LBD ICT Implementation Date

It has superseded the ICT Accredited

Business (ICTAB), an initiative by

AITI.

LBD policy implementation for ICT Industryhas taken into effect on 1st March 2017.

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LBD Policy Framework for the ICT Industry

A guideline to enable Government agencies to apply abest practice on “local content” in contracts andprocurement to ensure fair and reasonableopportunities for local suppliers in the ICT sector.

Objective is to maximise local content throughgreater participation of capable local ICT companiesand workforce in the Government projects.

Focus is on ensuring development of local skilledworkforce and foster creation of local IntellectualProperty (IP) in the ICT industry.

This initiative is in line with LBD policy implementedin another industry under Ministry of Energy,Manpower and Industry.

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LBD ICT Stakeholders

Project Owners and Managers

ICT Companies

participating in Government ICT projects

Project Owners and Managers

Government ministries & agencies executing ICT projects

GLCs (next phase)

Implementing ICT projects

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LBD Quadrant: Allocation of Projects, Targets and

Features

Micro: 1 – 4 employees

Small: 5 – 19 employees

Medium: 20 – 99 employees

Large: >100 employees

LEGEND

: Size of Business

: Type of Business

: Target Local Skilled Workforce involved in the project / activities

SP : Sole Proprietorships

P : Partnerships

LC : Limited Companies

SPECIALISED HIGHLY SPECIALISED

: Micro, Small and Medium

: Medium and Large

: SP, P and LC

: LC : Foreign Registered Companies

: 70%

: 50%

Requires specialized skills and ability of companies to develop, operate and maintain complex ICT systems and services.

Requires highly specialized skills, vast experience and ability of companies to develop, operate and maintain highly complex ICT systems and services.

BASIC HIGH VOLUME

: Micro and Small

: Small and Medium

: SP, P and LC

: LC

: 100% for projects < BND

100,000 : 90% for projects ≥ BND

100,000

: 80%

Requires company with little or less experience to execute low risk and less complex projects.

Requires company to handle huge requests of ICT projects and services which are less complex.

Complexity

Project Value

BND 250,000

Each Quadrant have two (2) features

which determine the eligibility of

contractors to participate in the tender:

I. Types of Business

II. Size of Business

Each Quadrant also specifies a Target

Local Skilled Workforce that

contractors must include in their

proposals.

Important Note: Data gathered from

Business Reporting (BR) Portal.

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LBD Quadrant Work Categories in Government ICT

Contracts


1. Infrastructure (hardware and software) 1.1 Servers 1.2 Storage 1.3 Network 1.4 Data Centre

2. Development (non-standard platform) 2.1 Application 2.2 Mobile (with Back-end) 2.3 Enterprise Database 2.4 Multimedia (CGI and/or 3D)

3. System Integration 3.1 Security 3.2 Identity / Authentication 3.3 API/Direct

4. Technical Training

5. Technical Support 6. Procurement

6.1 Specialised Hardware 6.2 Specialised Software

1. Infrastructure (hardware and software) 1.1 Servers 1.2 Storage 1.3 Network 1.4 Data Centre

2. Development (non-standard platform) 2.1 Application 2.2 Mobile (with Back-end) 2.3 Enterprise Database 2.4 Multimedia (CGI and/or 3D)

3. System Integration 3.1 Security 3.2 Identity / Authentication 3.3 API/Direct

4. Technical Training 5. Technical Support 6. Procurement

6.3 Specialised Hardware 6.4 Specialised Software

BASIC HIGH VOLUME

1 Development (standard platforms) 1.1 Web 1.2 Mobile (static) 1.3 Multimedia (2D animation) 1.4 Database (simple)

2 End-User Training 3 End-User Support 4 Procurement (minimal quantity)

4.1 Standard Hardware 4.2 Standard Software

1. Development (standard platforms) 1.1 Web 1.2 Mobile (static) 1.3 Multimedia (2D animation) 1.4 Database (simple)

2. End-User Training 3. End-User Support 4. Procurement (high quantity)

4.3 Standard Hardware 4.4 Standard Software

Complexity

Project Value BND 250,000

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LBD Quadrant Criteria in Government ICT Contracts


1. License Partner

2. Open/Standard platform

3. Local services support still available

through partners

4. High level of investment/risk

5. Involves Enterprise technology

6. Opportunity for technology transfer

7. Opportunity for local training

1. Principle OEM

2. Closed platform

3. Complex services

4. High level of investment/risk

5. Involves Enterprise technology

6. Requires vast management experience

7. Opportunity for technology transfer

BASIC HIGH VOLUME

1. Simple services

2. Utilize EGNC readily available platform

3. Supply of items readily available in local market

4. Low risk

5. Low involvement of Enterprise technology

6. Less technical/management experience


1. Simple services

2. Utilize EGNC readily available platform

3. High supply of items in local/external market

4. Low/High risk

5. Requires vast management experience


Complexity

Project Value BND 250,000

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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.

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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

2. Size of Business (Assess from the company’s BR Data) – Based on total number of local and

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

3. Type of Business (Assess from the company’s BR Data) - Tender will specify if a business type

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.

http://business.gov.bn/SitePages/OBR.aspx

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LBD ICT Project Workflow

Contractor Project Owner Project Review

Committee

Digital Nation Division

(DND), MEMI

Pre

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Eva

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menta

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Co

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letion

Register and/or update

Business Reporting (BR)

ICT Project Start - Set LBD

Quadrant

Advertise/Release Tender

with LBD Quadrant, Type

and Size of Business

Specified

Propose LBD Plan to

reach Targets and

Milestones Specified

Evaluate and Recommend

Award

Receive project update

report from Project Owner

Contractor and Project Owner via

Tender Review Committee agree to

LBD targets & milestones in Project

Contract

Provide regular updates in Business

Reporting (BR)

Report Compliance in

every milestones

Close reporting upon

satisfactory achievement

of LBD Targets

Verify and submit report in

every milestones

Receive report in every

milestones

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LBD Compliance and Monitoring Process

PROJECT STAGE ACTION ITEMACTION PARTY

Register and/or update Business Reporting (BR) Portal.

PRE-TENDER

1 Contractor/Company

Propose LBD plan to reach target local skilled workforce andmilestones specified in LBD Framework.TENDER 3 Contractor/Company

Evaluate & assess the local content proposal byContractors/Company.EVALUATION 4

Tender Review

Committee

Agree to the targets & milestones defined in projectcontract.AWARD 5

Contractor/Company, Project

Owner/Manager via Tender

Review Committee

Report compliance to local content to the Project Managerat every milestone of project.

IMPLEMENTATION


Verify and submit report at every milestone to DND.7 Project Manager

Provide updates in Business Reporting (BR) at everymilestone.8 Contractor/Company

COMPLETION 9 DND, MEMI Close reporting upon satisfactory achievement of LBDtargets.

Determine the quadrant of the project.2Project Owner/Manager

and/or Project Review

Committee

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LBD Pre-Tender Stage


Register and/or update Business Reporting (BR) Portal

PRE-TENDER

1 Contractor / Company

Determine the quadrant of the project.2Project Owner/Manager

and/or Project Review

Committee

Business Reporting (BR)

Portal:

http://www.business.gov.bn/SitePages/

OBR.aspx

LBD Quadrant:

• Basic

• Specialised

• High Volume

• Highly Specialised


: Micro, Small and Medium

: Medium and Large

: SP, P and LC

: LC : Foreign Registered Companies

: 70%

: 50%

Requires specialized skills and ability of companies to develop, operate and maintain complex ICT systems and services.

Requires highly specialized skills, vast experience and ability of companies to develop, operate and maintain highly complex ICT systems and services.

BASIC HIGH VOLUME

: Micro and Small

: Small and Medium

: SP, P and LC

: LC

: 100% for projects < BND

100,000 : 90% for projects ≥ BND

100,000

: 80%

Requires company with little or less experience to execute low risk and less complex projects.

Requires company to handle huge requests of ICT projects and services which are less complex.

Complexity

Project Value

BND 250,000

1 2

http://www.business.gov.bn/SitePages/OBR.aspx

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LBD Tender Stage


Propose LBD plan to reach target local skilledworkforce and milestones specified in LBDFramework.

TENDER 3 Contractor/Company

LBD plan should be embedded in the Government ICT

contracts.

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LBD Evaluation Stage


Evaluate & assess the local content proposal byContractor/Company.EVALUATION 4

Tender Review

Committee

Determine the quadrant of the project, targets and milestones.

Project Owner & EGNC

Example proposed LBD ICT Plan for a Specialized

Quadrant:

• Target of Local Skilled Workforce shall be specified in

a contract by the PM (i.e. 70%) .

• Participating Contractor/Company proposed Target

Local Skilled Workforce by the end of the contract is

71%.

• The assessment result is LBD complied as the

proposed target meet the actual LBD target.

• Although there are no Targets for Administrative

employees, Contractor/Company are required to fill in

recruitment and up-skilling of local and foreign

Administrative workforce.

Example: Contractor’s LBD ICT target proposal

Important Note: ICT local skilled workforce shall onlyreflects the number of employees involved in the contract.

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LBD Award Stage


Agree to the targets & milestones defined in projectcontract.AWARD 5

Contractor/Company, Project

Owner/Manager via Tender

Review Committee

Once Contractor/Company has been awarded,

the Project Manager has to initiate LBD

Reporting to DND by emailing to:

[email protected]

mailto:[email protected]

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Report compliance to local content to the Project Managerat every milestone of project.

IMPLEMENTATION


Verify and submit progress report at every milestone to DND.7 Project Manager

Provide updates in Business Reporting (BR) at everymilestones.8 Contractor/Company

Contractors are required to submit LBD Progress

Report to PMs at every milestones specified in the

particular contract.

PMs shall monitor the contractor LBD Progress

Report by assessing the actual Local Skilled

Workforce and target Local Skilled Workforce

specified at every milestone.

PMs shall submit the contractor’s LBD Progress

Report to DND by emailing to [email protected]


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COMPLETION 9 DND, MEMI Close reporting upon satisfactory achievement of LBDtargets.

Contractors shall submit LBDClosing Report to PMs at the endof the contract.

PMs shall assess the contractorLBD Closing Report that are theactual Local Skilled Workforce andtarget Local Skilled Workforcespecified at the end of thecontract.

PMs shall submit the contractor’sLBD Closing Report to the DND byemailing to [email protected]

If the contractor failed to providevalid justification for unachievedLBD target during Muzakarahsession, the contractor isexempted to participate in anyfuture Government ICT contract.

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THANK YOUFOR YOUR KIND ATTENTION

For enquiries and further information:

[email protected]

2380333 ext. 3271/3251

Nurnadzirah Anati binti Abdul RahimSiti Nur Hayati binti Abdul Ghani


LBD ICT SLIDES FOR INDUSTRY ENGAGEMENT

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