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By Leonard Lim
The Straits Times
Saturday, Feb 23, 2013
SINGAPORE - Peopple's Action Party town councils have put out a tender calling for a company to run their computer systems, as the controversial contract signed with Action Information Management (Aim) expires on April 30.
"The vendor would have to deal with all the 14 town councils when reviewing or revising the system. It would be better for the 14 town councils to consolidate their software rights in a single party which would manage them on behalf of all the town councils, and also source vendors to improve the system and address the deficiencies," he said.
He added that the idea to have a third party own the computer system with the councils paying a service fee was not uncommon and that the deal ultimately yielded savings of around $8,000 for the town councils.
Dr Teo went on to name the five companies that collected tender documents. Apart from Aim, there was CSC Technologies Services, Hutcabb Consulting, NCS, and NEC Asia. In the end, only Aim submitted a bid.
Said Dr Teo: "I am aware that NCS considered bidding but in the end, decided not to do so as it was of the view that the IP rights to software developed in 2003 on soon to be replaced platforms were not valuable at all."
Another withdrew, he said, because it did not want to fulfil a requirement that it ensure the renewal of the contract with NCS would not come with a rate increase.
Dr Teo also gave an explanation of a clause stating that the contract with Aim can be terminated if there is a material change in the town council. Workers' Party chairman Sylvia Lim had questioned twice how this clause was in the public interest.
He said: "Under the contract with AIM, the TCs (town councils) could terminate the arrangements by giving one month's notice if the TCs were not satisfied with AIM's performance. Similarly, AIM could terminate by giving one month's notice in the event of material changes to the membership of a TC, or to the scope and duties of a TC, like changes to its boundaries.
"This is reasonable as the contractor has agreed to provide services on the basis of the existing TC- and town-boundaries, and priced this assumption into the tender. Should this change materially, the contractor could end up providing services to a TC which comprises a much larger area and more residents, but at the same price."
A notice was placed in The Straits Times Classifieds on Feb 4, inviting applicants to, among other things, supply, develop and install a "fully operational integrated town council management system with operation support and maintenance".
A briefing for interested parties was held on Feb 7, with the tender to close on March 4.
When contacted on Wednesday, Dr Teo Ho Pin, coordinating chairman of the 14 PAP-run town councils, would not say how many parties had picked up the tender documents or whether Aim was one of them, saying that he did not want to influence the ongoing tender process.
But, he revealed, Aim helped prepare the tender specifications.
Asked if the winner of the bid would own the software and lease it back to the town councils like Aim did, Dr Teo said it would depend on the proposals submitted.
"We will evaluate the cost and benefits of each proposal," he said.
Aim chairman Chandra Das also did not want to reveal whether the IT company had - or would - put in a bid. "Wait and see," he would only say.
The company has been handling the town council management system for the town councils since it won an open tender in 2010.
But the contract drew public attention after a recent war of words broke out between Aim and the Workers' Party (WP), prompting critics to ask why the PAP-owned firm had bought software from the town councils, only to lease it back to them.
Some also asked if public funds were at stake and residents' interests were compromised.
Last month, Prime Minister Lee Hsien Loong ordered a full review into the sale, saying it was in the interest of transparency and maintaining trust in the system.
The issue emerged last November after WP chairman Sylvia Lim said that Aim's move to terminate the lease of its software in 2011 had affected the Aljunied-Hougang Town Council's (AHTC) performance in a government review.
Both sides then locked horns over who had terminated the software lease.
On Wednesday, Ms Lim said WP hoped for an extension for the use of the software in Punggol East after the WP won the seat in the by-election last month.
She said the party has written to Aim, but did not reveal if this was to ask for an extension. Mr Chandra Das would only say the firm had received the letter, and did not elaborate on whether an extension would be granted.
The WP plans to merge the new Punggol East town council with the existing AHTC.
[email protected]
The Ministry of National Development, which is doing the review, has also been asked to re-examine the "fundamental nature" of town councils, to ensure high standards of corporate governance.
Dr Teo had said previously that the town councils' transaction with Aim had brought them benefits and savings, and that Aim did not make any financial gains from it.
The Straits Times
Saturday, Feb 23, 2013
SINGAPORE - Peopple's Action Party town councils have put out a tender calling for a company to run their computer systems, as the controversial contract signed with Action Information Management (Aim) expires on April 30.
"The vendor would have to deal with all the 14 town councils when reviewing or revising the system. It would be better for the 14 town councils to consolidate their software rights in a single party which would manage them on behalf of all the town councils, and also source vendors to improve the system and address the deficiencies," he said.
He added that the idea to have a third party own the computer system with the councils paying a service fee was not uncommon and that the deal ultimately yielded savings of around $8,000 for the town councils.
Dr Teo went on to name the five companies that collected tender documents. Apart from Aim, there was CSC Technologies Services, Hutcabb Consulting, NCS, and NEC Asia. In the end, only Aim submitted a bid.
Said Dr Teo: "I am aware that NCS considered bidding but in the end, decided not to do so as it was of the view that the IP rights to software developed in 2003 on soon to be replaced platforms were not valuable at all."
Another withdrew, he said, because it did not want to fulfil a requirement that it ensure the renewal of the contract with NCS would not come with a rate increase.
Dr Teo also gave an explanation of a clause stating that the contract with Aim can be terminated if there is a material change in the town council. Workers' Party chairman Sylvia Lim had questioned twice how this clause was in the public interest.
He said: "Under the contract with AIM, the TCs (town councils) could terminate the arrangements by giving one month's notice if the TCs were not satisfied with AIM's performance. Similarly, AIM could terminate by giving one month's notice in the event of material changes to the membership of a TC, or to the scope and duties of a TC, like changes to its boundaries.
"This is reasonable as the contractor has agreed to provide services on the basis of the existing TC- and town-boundaries, and priced this assumption into the tender. Should this change materially, the contractor could end up providing services to a TC which comprises a much larger area and more residents, but at the same price."
A notice was placed in The Straits Times Classifieds on Feb 4, inviting applicants to, among other things, supply, develop and install a "fully operational integrated town council management system with operation support and maintenance".
A briefing for interested parties was held on Feb 7, with the tender to close on March 4.
When contacted on Wednesday, Dr Teo Ho Pin, coordinating chairman of the 14 PAP-run town councils, would not say how many parties had picked up the tender documents or whether Aim was one of them, saying that he did not want to influence the ongoing tender process.
But, he revealed, Aim helped prepare the tender specifications.
Asked if the winner of the bid would own the software and lease it back to the town councils like Aim did, Dr Teo said it would depend on the proposals submitted.
"We will evaluate the cost and benefits of each proposal," he said.
Aim chairman Chandra Das also did not want to reveal whether the IT company had - or would - put in a bid. "Wait and see," he would only say.
The company has been handling the town council management system for the town councils since it won an open tender in 2010.
But the contract drew public attention after a recent war of words broke out between Aim and the Workers' Party (WP), prompting critics to ask why the PAP-owned firm had bought software from the town councils, only to lease it back to them.
Some also asked if public funds were at stake and residents' interests were compromised.
Last month, Prime Minister Lee Hsien Loong ordered a full review into the sale, saying it was in the interest of transparency and maintaining trust in the system.
The issue emerged last November after WP chairman Sylvia Lim said that Aim's move to terminate the lease of its software in 2011 had affected the Aljunied-Hougang Town Council's (AHTC) performance in a government review.
Both sides then locked horns over who had terminated the software lease.
On Wednesday, Ms Lim said WP hoped for an extension for the use of the software in Punggol East after the WP won the seat in the by-election last month.
She said the party has written to Aim, but did not reveal if this was to ask for an extension. Mr Chandra Das would only say the firm had received the letter, and did not elaborate on whether an extension would be granted.
The WP plans to merge the new Punggol East town council with the existing AHTC.
[email protected]
The Ministry of National Development, which is doing the review, has also been asked to re-examine the "fundamental nature" of town councils, to ensure high standards of corporate governance.
Dr Teo had said previously that the town councils' transaction with Aim had brought them benefits and savings, and that Aim did not make any financial gains from it.
