An Innovative Approach Enterprise Storage Project Victor Camilleri Malta Information Technology and Training Services Ltd Anthony Cachia Department of Contracts

The Drive Towards Consolidation

20% 40% The Drive Towards High-Availability

20% 40% Consolidate And Standardise ICT Resources Collaborate With Industry Leaders Increase Productivity And Reduce Costs Pillars of Strategic Partnership

Procurement Requirements Storage technology was innovative to MITTS Not restrict bidders from proposing a solution based on their most ideal options A financial model: –flexibility to accommodate MITTS requirements to service Government; –minimum administrative costs –yearly financial targets taking into consideration any revised requirements from MITTS Ltd and the introduction of technology to further achieve the targeted benefits A 7 year relationship – potentially leading to a maximum 14 year relationship

Legislative Framework In April 2005, when the procurement strategy was being developed, the Contract Regulations 2004 only provided for: –Open Tender –Restricted Procedure –Negotiated Procedure Options discussed with Department of Contracts To meet our requirements the negotiated procedure was the only option that could allow us to discuss the technical requirements in more detail with the suppliers while addressing our financial requirements Negotiated procedure never used in Malta Developed and agreed procedure with Department of Contracts

Short-Listing Phase Issued Request for Declaration of Interest: –Defined Strategic Partnership Requirements based on: a minimum period of 7 years a Trusted Partner and NOT simply a reseller leverage Partner’s expertise in the field of data consolidation. –Identified functional requirements based on business objectives rather than prescriptive technical criteria –Listed qualitative criteria expected from prospective bidders Evaluated bids based on bidders experience and what they could get to the project Short-listed three bidders (minimum requirement)

Preparing for Short-listing Stage Foundation i)Strategy based on a minimum period of 7 years ii)Seeking a Trusted Partner and NOT simply a reseller iii)Leverage from the Partner’s expertise in the field of data consolidation. iv)Strong relationship but flexible terms v)Requirements based on business objectives and functional requirements rather than prescriptive technical criteria

Short-Listing Stage Deliverables i)An understanding of the bidder’s background, approach and expertise in the field of consolidation ii)An appraisal of the bidder’s willingness to participate in a strategic partnership iii)An assessment of the technical solution and support framework iv)Quantification of TCO and ROI

Preparing for Negotiation Stage Deliverables i)Developed further the procedures to be applied during the negotiation phase ii)Code of ethics to ensure that participants understand the importance of generating trust through the behaviour followed iii)Developed Business Requirements covering: - Critical Success Factors - Service requirements - Business and Partnership requirements even taking into consideration information received from bidders during the short-listing stage

Negotiation Process Deliverables i) In Briefing Session process explained in detail, presented requirements document and identified sequence for meeting bidders on one-to-one basis ii)5 full days to discuss functional and business requirements in detail and enable bidders to understand our requirements better iii)One day session allowed bidders to clarify more their ideas before submitting their proposals iv)All sessions were recorded

Final Adjudication and Award Deliverables i)During evaluation, various clarifications were still requested ii)With one bidder we met to ensure that our requests for clarification were being properly understood iii)After identifying the most advantageous offer, entered into further negotiations with bidder to negotiate aspects that had not been fully met or where still unclear iv)Put in motion the Governance structures established through the Contract

Internal Issues encountered -The process was championed by the MITTS Chairman on the basis that MITTS or its employees had never implemented such technology which was still evolving on the market -This was a culture change in the way the company had to do business -Resistance from technical experts to accept concept that bidders propose technical solution rather than issue defined technical specifications. This resulted: -delays in the process -internal conflict with personnel trying to apply the Chairman’s decisions -mistrust between employees -Misinterpretation of the Chairman’s instructions -Arguments mainly based on: -Solution could be less costly if pre-specified boxes are bought and dependency on supplier services removed -Credibility of bidders and suppliers -Research would help fill the ‘experience gap’ -Management does not understand as it is not technical -Personnel felt that their expertise was being put in doubt -The resistance was subtle and continuous throughout the process even though the procurement process in this case was headed by the Chairman himself

Lessons Learnt -The negotiation procedure was new even for the major foreign ICT bidders -The procedure adopted won the trust of the bidders and allowed them full participation in the process -Bidders expressed their satisfaction in the process and all questioned why cannot this process be applied in many more procurement processes -We may have been too cautious to ensure fair play and stopped quite short from using the negotiated procedure to its maximum -We should have maintained negotiation sessions with the last two bidders till all aspects of the final agreement were covered thus ensuring competition till the end

Overall Tendering Process Process resulted in the EU Procurement Principles being upheld, namely: –Fair and transparent procedure –Equal treatment and non-discrimination of economic operators –Confidentiality of information ensured DoC/MITTS won the trust of the economic operators through this tendering process

-Unknowingly procedure adopted compared more to a Competitive Dialogue than to a fully fledged Negotiation Procedure -Both the Competitive Dialogue and the Negotiated Procedure facilitate the engagement of suppliers to allow them to propose solutions based on their expertise rather than imposing specifications on them when they may be in the process of refreshing the technology Conclusion