LOCAL BUSINESS DEVELOPMENT (LBD) POLICY FRAMEWORK … Documents/LBD/LBD Policy Framework... ·...

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18 February 2017

LOCAL BUSINESS DEVELOPMENT (LBD)

POLICY FRAMEWORK FOR

ICT INDUSTRY IN BRUNEI DARUSSALAM

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Wawasan 2035 Goals

1Well educated and highly skilled people

2High quality of life

3Dynamic and sustainable economy

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Wawasan 2035 Goals

1Well educated and highly skilled people

2High quality of life

3Dynamic and sustainable economy

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EIDPMO Strategic Goals

Digital Economy as an

important driver of

innovation,

competitiveness and

growth of economic

sectors in Brunei.

Local workforce

capabilities and skills

needs to be developed

to meet Digital

Economy requirements.

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1Involvement of local ICT workforce are mainly in the basic skill (entrant) level.

2Lack of locally made solutions in Government ICT projects due to low creation of local IP.

Current Local Involvement Status in Government ICT projects

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Current Workforce Structure in ICT Industry

74%

26%

46

21

6

1

8

13

4.5

0.5

Entrant

Specialist

Expert

Senior Management

Skills Level (%)Locals vs Non-Local (Skilled)

LOCALS FOREIGNERS

Data Source: 1,250 employees in 101 companies registered under AAB Status / ICTAB

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Status of Government ICT Projects using Local Solution

Data Source: 45 on-going Government ICT projects under EGNC in 2015.

Locally Made9%

Imported91%

Locally Made

Imported

Lack of locally made

software in

Government ICT

Projects

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Current Workforce Structure in ICT Industry

46

21

6

1

8

13

4.5

0.5

Entrant

Specialist

Expert

Senior Management

Skills Level (%)

LOCALS FOREIGNERS

Data Source: 1,250 employees in 101 companies registered under AAB Status / ICTAB

ICT Companies source for sub-contractors to

execute specialist jobs

and above

Need to grow local Entrant

level to Specialist & Expert

Generate local Intellectual

Property (IP)

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LBD Policy Framework for the ICT Industry

Focus is on ensuring development of local skilled

workforce and foster creation of local IP in the ICT industry.

A guideline to enable government agencies to apply a best

practice on “local content” in contracts and procurement

to ensure fair and reasonable opportunities for local suppliers

in the ICT sector.

Sets out the local content requirements for ICT companies

participating in the government ICT projects.

Objective is to maximise local content through greater

participation of capable local ICT workforce in the government

projects.

This initiative is in line with LBD policy implemented in

another industry under EIDPMO.

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Scope of LBD Policy Framework

ICT Companiesparticipating in government ICT projects

Project Owners and ManagersGovernment ministries & agencies executing ICT projects

GLCs (next phase)Implementing ICT projects

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LBD Allocation of Projects & 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

EGNC has the authority to

approve proposal by Project

Owner concerning

deviations to Target Local

Skilled Workforce

requirement

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

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LBD Work Categories


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 System Integration

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 System Integration

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 Features


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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Opportunities for Micro & Small Companies

• Paid work opportunities for our local application developers to develop e-services using the E-Government Platform

• Low risk and less complex application development work to be done by our local small and medium sized companies

• Project value that amounts up to $100,000 (Basic)

Improve local content in small government

projects

Standardise the development and

hosting of online e-services

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Compliance and Monitoring Process

PROJECT STAGE ACTION ITEMACTION PARTY

Targets include but are not limited to:

1. Increase in no. of local skilled workforce.

2. Recruitment of local employees.

3. Training of local employees.

4. Local content spending.

Determine the quadrant of the project, targets and milestones.PRE-TENDER 1

Project Owner &

EGNC

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Propose LBD plan to reach target local skilled workforce specified in LBD FrameworkTENDER 2 Contractors

INCREASE IN NO. OF LOCAL SKILLED WORKFORCE

Start Project Mid Project End Project End of Contract LBD

Quadrant Target

Local Non-

Local

%

Local

Local Non-

Local

%

Local

Local Non-

Local

%

Local

Local Non-

Local

%

Local

TECHNICAL

Senior Management

Expert

Specialist

Entrant

OVERALL

ADMIN

Top Management

Supervisory

First-line

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NEW RECRUITMENT OF LOCAL EMPLOYEES FOR THE CONTRACT


Quadrant Target

Local Non-

Local

%

Local

Local Non-

Local

%

Local

Local Non-

Local

%

Local

Local Non-

Local

%

Local

TECHNICAL

Senior Management

Expert

Specialist

Entrant

OVERALL

ADMIN

Top Management

Supervisory

First-line

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TRAINING OF LOCAL EMPLOYEES THROUGHOUT CONTRACT PERIOD

No Name IC Number and Colour

Scope of Training(s)

Completed

(Specify on-the-job

training or certified

training)

End of Contract Target

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LOCAL CONTENT SPENDING


Quadrant Target

Local Non-

Local

%

Local

Local Non-

Local

%

Local

Local Non-

Local

%

Local

Local Non-

Local

%

Local

EMPLOYMENT

GOODS &

SERVICES

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Note: ITCI shall be part of the Action Party in the Pre-Tender Project Stage for projects above BND5 million .


Determine the quadrant of the project, targets and milestonesPRE-TENDER 1

Project Owner &

EGNC


Evaluate & assess the local content proposal by ContractorsEVALUATION 3

Project Tender

Review Committee

Agree to the targets & milestones defined in project contractAWARD 4

Contractor, Project

Owner & EGNC

Report compliance to local content to the Project Manager during the start, mid and end of project

IMPLEMENTATION

5 Contractor

Verify and submit start, mid and end progress report to ITCI EIDPMO6 Project Manager

Provide updates regularly in Online Business Reporting (OBR)7 Contractor

COMPLETION 8 EIDPMO Close reporting upon satisfactory achievement of LBD targets

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LBD Monitoring Structure

Contractor

Ministry/Department

EGNC & EIDPMO (ITCI Divison)

EIDPMO Head of LBD

LBD Team

Project Owner

Project Manager

Acknowledge progress of

LBD compliance

Assess LBD compliance of

ICT project

Report progress of

Contractors’ LBD

compliance

Comply to LBD requirement

set out in contract and

submit progress report

regularly

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ICT Project LBD Workflow

Contractor Project Owner Project Review

(EGNC)EIDPMO

Pre

-Te

nd

er

Te

nd

er

Eva

lua

tio

n&

A

wa

rdIm

ple

menta

tion

Co

mp

letion

Register and/or update

Online Business

Reporting (OBR)

**ICT Project Start. Set LBD

quadrant, target(s) and

milestones

Advertise/Release Tender

with LBD Quadrant

Specified

Propose LBD Plan to

reach Targets Specified

**Evaluate and Recommend

Award

Receive project update

report from Project Owner

Agree to LBD targets & milestones in Project Contract

Provide regular updates in Online

Business Reporting (OBR)

Report Compliance during

Start, Mid and End Project

Close reporting upon

satisfactory achievement

of LBD Targets

Verify and submit Start, Mid

and End Progress Report to

EIDPMO

Assess Start, Mid and End

Progress Report

Note: For projects above BND5 million, ITCID shall be part of the processes marked with **.

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LBD Implementation Date

It shall supersede the existing ICT Industry

Policy Framework on ICT Accredited

Business (ICTAB).

LBD policy implementation for ICT Industry shall take into effect on 1st March 2017.

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THANK YOUFOR YOUR KIND ATTENTION

For enquiries and further information

[email protected]

2224645 ext 1251

Mohd Jamil Hj Abd Jalil Md Zulhilmi Zaini

LOCAL BUSINESS DEVELOPMENT (LBD) POLICY FRAMEWORK … Documents/LBD/LBD Policy Framework... ·...

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