CIOs cite ICT procurement problems, issues

By Alexander Villafania
INQUIRER.net

MANILA, Philippines -- The Chief Information Officers Forum (CIOF), an organization of CIOs from government and private institutions, identified concerns that delay the implementation of IT projects in the Philippines.

Those fail to succeed due to procurement issues are government projects related to IT or modernization. During a recent roundtable discussion on government procurement, some member CIOs pointed out reasons for such delays and came up with various papers citing the problems as well as coming up with suggestions to improve procurement.

The group met as part of the Information Communications Technology for Development (ICT4D) project, a joint activity of the Department of Science and Technology and the Canadian International Development Research Center. Its main goals are to bring together theses and case studies on the use of ICT for development and get policy recommendations and experiences.

During his presentation, Angelo Timoteo Diaz de Rivera, director general of the National Computer Center and officer-in-charge of the Commission on Information and Communications Technology, pointed out that failed bids, delay in the release of funds, project modifications, change in project management and problems with service providers are among the main reasons why government IT projects are often delayed.

In most cases, these projects are recipients of millions of pesos from the e-Government Fund, a government-managed funding service dedicated to improving the government’s processes and speeding up services via the use of modern communications systems such as the Internet and mobile technology.

In his report, Diaz de Rivera revealed that between 2003 and 2006, P4.57 billion were released from the e-Government Fund for 36 projects. However, only five have been completed, namely the modernization system for the Bureau of Internal Revenue, Department of Social Welfare and Development, as well as several projects for the sub-agencies of the Department of Science and Technology. The rest of the projects funded by the e-Government Fund are still ongoing, 14 of which are suffering delays due to procurement problems.

Diaz de Rivera also noted several concerns about procurement of ICT projects from the e-Government Fund, primarily the difficulty in preparing proposals. Another problem is the lack of support from other government agencies that also want to conduct their own IT projects.

Even when a budget is approved, procurement still remains a problem. Diaz de Rivera said there were issues of validity of fund utilization, incomplete release of budget from the Department of Budget and Management, difficulty in drawing up technical specifications without mentioning brand names, as well as difficulty in preparing terms of reference.

In fact, Diaz de Rivera drew up a longer list of reasons why projects are delayed or fail even when the budget has been approved.

In fact, the main reason for such delays is lack of project management skills, according to Duke Eustaquio, who heads business development at the Development Bank of the Philippines Data Center Inc.

In his presentation, Eustaquio noted that IT projects fail because of the misconception that new IT systems and the “end-all” solutions, adding that improving the business process of an organization must therefore be the focus of an IT system implementation.

Eustaquio said the use of an information systems strategic plan (ISSP) should be necessary to guide any institution on implementing IT projects.

“Implementing an IT system is not easy. Engaging the services of a Project Management Office (PMO) should therefore be one of the first activities in planning the implementation of an IT Systems project,” Eustaquio said.

Eustaquio advised that the project management team should come from another government agency to ensure that government interests are protected, because using project management teams from the private sector would only add another layer that the government needs to check, monitor and audit.

Some agencies still bid out their Internet connectivity requirements every year but Bases Conversion Development Authority (BCDA) CIO Ma. Esperanza Espino said that Internet connectivity should be treated as a utility in the same manner as telephones. Multiyear contracting should be allowed for lowering the cost of using the service.

Espino also indicated that agencies should be knowledgeable about software they use especially with its different aspects such as licensing, customization and ownership. Agencies should also be ready for long-term sustainability of an IT project as initial purchase of equipment and services does not mean that there is no need for a follow-up investment in the future.

“To ensure the sustainability of the project throughout its intended life cycle, a mechanism should be put in place wherein the cost of maintaining an IT system after procurement and implementation phase is automatically added to the agency’s annual operating expenses,” Espino said.

“The procurement process for ICT should be made simple and adaptable to modern technology in order to ensure efficiency,” according to Lilia Guillermo, Bureau of Internal Revenue Deputy Commissioner and current CIOF President.

In her presentation, Guillermo said that Republic Act 9184, otherwise known as the Government Procurement Reform Act, as well as its Implementing Rules and Regulations should be amended to address efficiency in procurement of ICT goods and services, consulting and infrastructure. Her approach is to treat IT projects the same way as business systems wherein services are rendered, paid for and discussed again as the need arises and in accordance to a signed contract.

Even CIOF member Cynthia Mamon, who is president of Sun Microsystems and the current president of the Information Technology Association of the Philippines, has offered help to train government procurement officers. She said the group is developing a curriculum on new technologies that procurement officers will encounter during implementation of IT projects.

Many government agencies have already benefited from funding, both from public funds as well as grants from foreign groups, to enhance their processes with the use of technology. Such projects have been done in the last 10 years with various levels of success but it was only in 2002 when the government announced the availability of a dedicated e-Government Fund. Still, it is not known when Filipinos would fully make use of such projects.

As Guillermo succinctly puts it: “With the help of technological expertise, a genuine commitment to change and the political will to implement urgent procedural reforms in the Procurement System as well as implementation of awarded contracts, the various government agencies are confident that the ICT framework for a future of service and commitment to the Filipinos will be in place and properly sustained.”