Digital Agency Information Systems procurement Reform Study Meeting (5th)

Overview

Date and time: November 7, 2022 (Monday) from 13:00 to 14:30
Location: Digital Agency Shared Conference Room
Agenda:
1. Opening
2. Proceedings
  1. Positioning and How to Proceed in the Fifth Session
  2. Direction of Measures
  3. Free discussion
3. Adjournment

Materials

Relevant policies

Ensuring fairness and transparency in procurement / procurement reform to utilize new technologies

Summary of proceedings

Date

Monday, November 7, 2022, from 1:00 p.m. to 2:30 p.m.

Location

Digital Agency Shared Conference Room

Members in attendance

Member Kajikawa, Member Arikawa, Member Kawazawa, Member Kimura, Member Sakashita, Member Sumiya

Summary of proceedings

The secretariat explained the direction of the measures in the first half and the second half, and after free discussion, supplementary comments and additional opinions were issued at the end. The main opinions from each committee member are as follows.

"Policy Direction (1) Improvement of Agile and Flexible procurement Procedures"

Regarding Document P10, although the requirements are written, it is necessary to determine what is sufficient at the site, and it is necessary to prepare documents with sufficient conditions.
Regarding page 10 of the Appendix, I think that the Japanese version of the framework agreement scheme is effective in shortening the efficiency and time in procurement, so I would like to ask you to consider it at an early stage.
The improvement of procurement procedures is not unique to information systems, but I think Agile development is a problem peculiar to information systems, so I would like you to appeal to them so that they will be sufficiently aware of it. The most important thing in Agile development is how to decide the scope of implementation, how to make a validation on the scope of implementation, and how to give feedback. If the definition of Agile development and the basis for the necessity are clarified, the purpose will be highlighted, what kind of content will be the purpose of the contract will be clarified, and contract changes will be accurately made in the course of contract execution. Therefore, I think that the fairness and clarity of the selection of the contractor at the entrance will be determined. In addition, the timing of implementation of acceptance inspection and the items required in the accounting law will be determined.
I am in favor of considering a framework scheme and introducing it at an early stage, but I understand that medium-term measures will be effective if incorporated administrative agencies, local government, national universities, school education organizations, etc. widely participate in this framework.
Regarding the smooth promotion of contracts in cloud service, I believe that the phrase "We will guide the use of multi-year contracts in consideration of the project" is a part of contracts in cloud service other than Government Cloud. In the sense of sorting out the relationship with Government Cloud, it may be better to clarify that it refers to services that are not subject to Government Cloud.
In the materials, Agile development and cloud service are discussed together, but the contractual issues are different. cloud service is a contract to receive a license, and Agile development is a story in which the problem of the responsibility decomposition point comes out. I would like you to create a contract and create specifications after categorizing them properly.

"Direction of Measures (2) Improvement of Ordering Party's Capabilities in System procurement"

Even if you make a model, you have to implement it in the field. I want you to think about how to do it.
The Study Group covers a wide range of issues, but one of the most important points is the improvement of ordering capabilities. In the material on page 40, etc., it is written where the medium-term measures will be implemented from, but it is also written that seminars will be held for the purpose of learning organization about the minimum system procurement, and I think it is very important. I think such important initiatives will be started in Digital Agency, but I would appreciate if you could consider at the same time when to expand them to all ministries and agencies and how quickly they will be implemented. In particular, I would like you to start a wide range of initiatives that can be started immediately.
Improving the capabilities of the ordering party is a major problem unique to information systems. Digital Agency is studying information systems procurement specifically, so know-how and human resources are gathered. However, at present, the specialized fields of systems and procurement in the system procurement are separated in each ministry and agency that is expanding, and human resources and organization that can do both have not yet been developed. The keyword for the future is how efficiently each ministry and agency can build and develop a system and human resources that can accumulate know-how to implement procurement of information systems.
I think that the accumulation of knowledge and experience on the ordering party side is very important. The third part of the medium-term measures states that it is procurement performance information, but the terminology should be sorted out as to what will be created. I think that it is necessary to create some kind of database on procurement performance information and consider the utilization method based on what has been discussed so far. However, since there has been experience that various databases have been created and not utilized, it may be better to describe what will be created at a glance and in an easy-to-understand manner so that it is possible to understand that necessary things will be created in a unified manner.
We agree with the ability improvement of the ordering party in System procurement as a short-term measure, but it tends to stop at the creation of written specifications and the implementation of training. I think it is important to set up a procurement consultation counter for medium-term measures. I think that listening to the concerns of daily business and making improvements will be the most practical growth. I would like you to create a system that will take root firmly in the field.

"Direction of Measures (iii) Expansion of entry opportunities for SMEs and startup companies"

We would like to see the expansion of entry by small and medium-sized startup companies. However, measures to eliminate one party bidding and policies to support SMEs with advanced technologies are different. Therefore, we would like to see specific measures considered after sorting out the purpose of the expansion of entry plans.
Regarding contracts that do not have a maximum amount of damages, we would like to advance discussions so that a maximum amount can be included. Otherwise, it will be difficult for small and medium-sized enterprises and startups to enter the market.
It is written that the point of utilizing recommissioning is a response for the time being, so there is no sense of discomfort. However, as a medium-term measure, I think there is an item to develop guidelines on recommissioning to prevent decommission, and I think that measures to prevent decommission are required when utilizing recommissioning, so there is room for consideration on whether to incorporate the guidelines into short-term measures.
The third medium-term measure is the unification of forms, which I think is important in simplifying administrative procedures. Otherwise, paperless and digitalization cannot be realized in the original sense. It may be a difficult part in practical terms, but I wonder if it can be included in the short term because it is not bound by law.
The issues of (iii) and (iv) overlap, or (iii) seems to be a question that covers (iv) as a whole. If (iii) is centered on industrial development and (iv) is on the transparency of public procurement, I would like it to be written a little more clearly.
The expansion of opportunities for participation in information systems is not an inherent problem of information systems, and if the focus is on fairness, it can be said to be the whole public procurement. I thought that the attempt of a new platform was the part where the biggest problem was raised. Regarding the construction of the platform, as similar to the past, the registration system of orderable business operators in the public works department and the procedure led by the Administrative Reform Secretariat in which each ministry and agency lists orderable business operators as much as possible in their respective ordering operations and selects business operators fairly have been taken. I would like you to tackle the problem while considering how to cooperate with them. When registering business operators and finally selecting business operators, I would like you to proceed with the construction of the platform by considering whether there is any lack of fairness and transparency.
The term "resolution point" appears in the medium-term measures. The resolution point is also included in the guidelines on the provision of cloud service prepared by Ministry of Internal Affairs and Communications on October 31. We would like to see it made available for reference.

"Direction of Measures (iv) Elimination of vendor lock-in"

The first of the medium-term measures includes disclosure of source code and securing security, but from a legal perspective, I think there may be a solution such as partial open source by concluding an NDA and a confidentiality agreement, or making it available only between government agency. I would like you to consider it concretely.
With regard to intellectual property rights, I believe that the limitations of law are related to the Bayh-Dole Act, etc., but it is better to sort out what is possible to what extent and what is an obstacle now, and consider it including the revision of the law.
Looking at the future vision on page 9, RFI and community interaction and source code are described in the section of eliminating vendor lock-in. Shouldn't RFI and community interaction be included in the main measures?
I believe that the trigger for the discussion on eliminating vendor lock-in was the results of the JFTC's investigation in February this year. However, since specific problems have been raised based on questionnaires and hearings from each ministry and agency, it would be good to start preparing specific guidelines as soon as possible. I would like to avoid being hasty, but since the JFTC has raised specific problems, I would like to request that the creation of guidelines be started as soon as possible after the validation of problems as soon as possible.
In the United States, NIST created a framework for software supply chains, and last year the House of Representatives passed a law on supply chain management. As for security, I think it is necessary to consider a mechanism that can provide adequate collateral.

"(5) Ensuring transparency through internal control, etc."

It is not a problem unique to information systems, but it is related to the entire public procurement. However, regarding information systems, I think that reflection and lessons learned from the past failures of the ODB have not been made much use of. How to summarize and publicize the results of information systems and share information among ministries and agencies. How Digital Agency will lead them into guidelines. I would like to see the registration of results advanced along with appropriate systems design and transparent.
The mid-term measures state that "We will consider information to be disclosed to the outside." However, in order to exchange data between systems, for example, by attaching unique reference identifiers to companies in the supplier data, or by using procurement between data connections information systems or international data standards, we will be able to differentiate and compare ourselves with other countries. When organizing procurement information, I think it is very important to be aware of data standards from the beginning. When examining the system, we would like you to consider the development of identifiers and data standards.
In order to ensure the effectiveness of the PDCA cycle, I think it is very important that the support department and the audit department work together. I think it is very important to support with a positive perspective so that the audit does not become a drag on the side that promotes the procurement. I would like to emphasize the part of the mindset and the part of the perspective again, including whether it is okay to name it the audit department.
It says that the system procurement information is clarified, but it is difficult to search the current procurement portal in the first place, so I would like it to be corrected. In addition, if the eligibility for procurement participation is eased, why do SMEs have to go to see it? Isn't it good to have a mechanism to tell them that they are eligible for procurement participation? Why don't you apply a mechanism such as gBizID?

Other comments and additional opinions on the whole

While the Digital Agency Secretariat is considering what it can do, it is unclear whether it is necessary to revise the law or whether it is possible under the current law, and there may be cases where the procedure is suspended. I would like to see the committee members point out in the report that it is necessary to revise the law.
There are many contents to be implemented in Digital Agency, but I think it is necessary to prioritize them among the measures. In compiling the report in the future, I think it is necessary to discuss what to prioritize. I would like you to pay attention so that what is discussed in the report will be realized.
In relation to startup companies, it is important to promote push type entry, but I think it is important to work on public procurement in a transparent manner. I would like you to consider the mechanism.
It is divided into short - and medium-term measures, but I think it is very important to show when the transition will be made in the medium term, whether it can be truly implemented, what the feasibility is, and what the measures are progressing. Showing that it is improving even little by little is a chance to build trust in the people. I would like you to consider it. It is not necessary to follow the roadmap in a waterfall manner from the beginning, but it would be good if there was a place where we could report and introduce what is progressing.
It is difficult to ask another organization to implement the rules, but I don't think it will be optimal as a whole if we don't do it. While implementing the measures in Digital Agency, we need to listen to the opinions of private sector and plan to incorporate them while correcting the course.
Some companies are in trouble because they don't have a model for writing proposals. For example, will they teach how to write by exchange between companies or by providing textbooks from the government side? If this Issue is improved, venture businesses and SMEs will raise their hands more and it will become a dynamic procurement.
Even if you cannot write a proposal, if your technical ability is high, how should you evaluate it? Isn't it good to think about the ideal way of evaluation anew? Isn't it important to think about various mechanisms to find an evaluation method that is easy to express from the viewpoint of suppliers as well as the viewpoint of ordering parties?

End