Wednesday, 3 April 2013

NEC wins PAP town councils’ IT contract

3rd April 2013

Dr Teo Ho Pin, coordinating chairman of PAP-run town councils, announced in a statement yesterday (2 Apr) that NEC Asia Pacific is the winner of the PAP town councils’ IT contract. NEC won with the lowest bid.

Teo Ho Pin

Three IT companies had bid for the 7-year contract:
  • NEC Asia Pacific – $16.8 million
  • HCL Singapore – offering 2 options: $21.1 million and $27.5 million
  • NCS, a wholly owned subsidiary of the SingTel Group – offering 2 options: $16.8 million and $31.5 million
PAP town councils put up a new tender earlier to develop and maintain their town council computer systems. The existing controversial contract between PAP-owned company AIM and PAP town councils will end on 30 Apr this month.

AIM did not participate in the new tender but helped the PAP town councils to prepare the new tender specifications.

Dr Teo said NEC won partly due to its lowest bid. He also added that NCS’ $16.8 million bid was incomplete as it was only for 3 years. He explained that it was Deloitte and Touche Enterprise Risk Services, the appointed evaluator of the tender, who recommended NEC.
Dr Teo said, “The town councils are confident that the new software is a cost-effective solution which will enable them to better serve their residents.”

However, strangely, he also disclosed that “the published value of NEC’s bid of $17.6 million included an option that would be triggered if there were an electoral boundary change”. So, in other words, NEC had offered 2 options: $16.8 million (no electoral boundary change in the next 7 years) and $17.6 million (with electoral boundary change).

Presumably, say there are boundary changes in 2016 GE or by-elections (within the 7 year contract), NEC will then be charging the town councils more for shifting of residents’ data from 1 town council to another. However, Dr Teo is silent on what happened if any of the existing14 PAP town councils fall to oppositions later. Would we see a replay of AIM II?

PAP MP Charles Chong said that what is important in the change is that it benefits residents and the selection process is transparent and publicly defensible.

Meanwhile, the review of the controversial sale of town council management software to AIM has been extended to the end of Apr 2013 (‘MND’s review of TCs’ software sale to $2 AIM delayed‘). Under public pressure, PM Lee ordered MND to review the sale in Jan 2013, just a day before calling the Punggol East by-election which PAP eventually lost to WP. The public has criticised the sale of the software to PAP-owned company AIM as conflict of interest.

AIM chairman Chandra Das and Dr Teo declined to comment on the review.

Source: TRE

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