HK Govt Gives Web-based Tendering System Contract To Local Firm

The Hong Kong Government contracted out local systems integrator Computer and Technologies International Limited (C&T) to produce its Web-based Electronic Tendering System.

The Hong Kong company, which is listed on the Hong Kong Stock Exchange (SEHK:0046), beat out 64 other local and foreign solutions providers for the contract to build an Internet-based tendering system for the Government Supplies Department (GSD).

In the past, the GSD has had to use a manual system for its public supplies tendering process.

With the Web-enabled system, the government hopes to offer a more responsive and efficient tendering system for suppliers and government departments. The government, nevertheless, intends to continue to offer the manual system.

“While we shall continue to maintain a manual system for as long as many suppliers require it, the Internet and related technologies have opened up new possibilities for making the purchasing process swifter, more responsive and able to function with much less paperwork,” said Nigel Shipman, director of Government Supplies.

“It also enables us to reach a much wider range of suppliers from distant as well as nearby locations, so more competitive bids may be obtained,” added Shipman.

Shipman said that, initially, the introduction of the system wouldn’t result in cost savings because the manual system would be maintained.

According to C&T representatives, providing the tendering process via Internet, worldwide suppliers will be able to easily participate in the Hong Kong SAR’s supply procurement process.

“This will streamline the acquisition of products and services to such an extent that a significant portion of the traditional procedures will be phased out over the next couple of years,” said C. S. Ng, C&T’s chairman and managing director.

“We expect 1,500 tenders will be covered by the system annually which would be worth roughly HK$2 billion (US$260 million),” commented Shipman. GSD requisitions about HK$5 billion (US$645 million) in business annually.

The contract, which has a duration of 5 years and a 2 year review, was awarded to C&T after 64 tenders was narrowed down to seven local and three foreign companies who participated in a demonstration run-off.

“The contract was awarded to the company that could best meet our requirements with the best price,” said Shipman.

Although C&T has experience in systems integration, some critics say that the company has had little practice in developing Web-based solutions.

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