Digital Agency Bid, etc. Monitoring Committee (5th)

Overview

Date: Wednesday, September 18, 2024 (2024)
Location: Digital Agency Shared Conference Room
Name of Committee member (honorific title omitted, in alphabetical order):
- Ryota Kaneko, Professor, Graduate School of Accounting, Waseda University
- Yoshiko Kawasawa, Representative Director, Social Policy Lab Co., Ltd.
- Yuichi Mochinaga, Certified Public Accountant
Period for deliberation: From October 1, 2023 (2023) to March 31, 2024 (2024)
Number of extracted projects: 3 (210 target projects)
Number of proposals deliberated: 3

Materials

Proceedings Summary (PDF/180KB)

Summary of proceedings

Operation and maintenance of the account information registration and cooperation system based on the "Act on Registration, etc. of Deposit Accounts for the Prompt and Secure Provision of Public Benefits, etc."

Serial number: 24-09-01
Contract method: General competitive bidding contract (comprehensive evaluation bidding method)
Counterparty: NTT Data Corporation
Contract amount: 1,471,763,700 yen
Contract date: June 8, 2024 (2024)

Comments and Questions	Answer
The bid rate for this project is 100%. What is your view on this?	First, regarding the setting of the estimated price at the Agency, it is calculated in consideration of the amount estimated by the Agency, the estimated price of the operator, and the budget amount. At present, we are conducting a initiatives to increase the number of companies participating in the bid, but we believe that the bid rate for this project was 100% as a result because it was a one party bid.
We understand that the amount is calculated and compared with the estimated price. On the other hand, it is assumed that the successful bidder in this procurement has been engaged in the design development business and operation and maintenance business for some time, but the estimated price from the business operator who has been engaged in the business for some time may be low. If a reasonable price is not set as the predetermined price, new business operators will be refused to enter the business. Therefore, it is necessary to ensure that a reasonable price becomes the predetermined price.
It is highly likely that the reason why the procurement Project was decided to be a single-bidder was that "special processing was required." What specific processing is involved?	At the time of system design, there were many parts to be built in cooperation with other systems owned by the winning bidder, and there was communication within the winning bidder, which was not external, so it was difficult for other bidders to participate.
What measures can be considered in the future?	There are some difficult aspects, but from procurement's point of view, we would like to keep the details of the specifications open.
Is special processing a peculiarity of the application of the winning bidder?	For example, when creating an application, it is quite difficult to create a perfect one only with specifications, and it is thought that invisible knowledge and know-how will be required in order to create it.
Requirements have been added to the written specifications in response to a request for comments from the operator. Is it difficult to describe specific operations from the beginning?	It is difficult to describe everything in the specifications due to confidentiality, and we recognize that there were many superficial contents to some extent. In addition, there were some parts that were insufficient because the internal information linkages did not work well due to the change of the person in charge, and there were some parts that were added after being pointed out by the operator.
Isn't it a problem that the specific content of the work will not be known unless a request for comments is made in procurement in the future? In addition, since it is troublesome to make a request for comments, is it possible to indicate a policy on how specific the specifications should be written?	We would like to utilize what you pointed out in the next procurement. In addition, we have a team called procurement top gun, which has established a system in which we can consult about the contents of written specifications, compile a database of past written specifications, and refer to it when a similar procurement occurs. Since I am not clearly aware of the policy you pointed out, I would like to consider it with procurement top gun as one Issue.
Although it may be difficult to codify the contents of the procurement Specifications as a policy, I would like you to take the leadership in information systems and advance the specifics as much as possible as a direction to be aimed at in order to realize an efficient and effective national economy using IT. Regarding the payment of public benefits, etc., this time, it was a one party bid because there was a history from the past in fiscal 2021 and fiscal 4, and the knowledge of the winning bidder was high. However, it was confirmed that there were points to be improved this time, and I would like to expect future improvement activities.
Knowledge, etc. of the successful bidder is important for the smooth operation of the business. However, we would like to request that the creation of deliverables related to the handover, that is, the elaboration and detail of the handover that can be handled even if the successful bidder is replaced by another business operator, be considered.

Survey and research on the introduction of service design in semi-public sector

Serial number: 24-09-02
Contract method: Discretionary contract (planning competition)
Counterparty: KESIKI Co., Ltd., TakramJapan Co., Ltd., Outlet Co., Ltd.
Contract amount: 118,991,400 yen
Contract Date: February 2, 2024 (2024)

Comments and Questions	Answer
Semi-public sector has attracted the attention of many companies and will grow in the future. However, other ministries and agencies have also selected almost the same operators as those who jointly won similar procurement projects this time. If the selection is concentrated on a specific operator while this industry is growing, the experience of only that operator will increase, and the number of procurement destinations as a country will decrease in the medium to long term.	Not only the agency but also each local local government is gradually starting initiatives in service design in cooperation with companies, and I don't think only specific companies are participating in procurement. I think it is important for Japan as a whole to increase the number of companies with know-how in this field and to increase their experience.
I think it is difficult to implement this procurement content in this short period of time as a theme. If the procurement had been implemented earlier in the fiscal year, the number of bidding participants would have increased. Couldn't the bidding period have been advanced?	This article explains the background of the decision to conduct a survey and research on the introduction of service design in semi-public sector, which is the theme of the procurement. The idea was proposed based on the statement by the Minister Kono at the first the Digital Administrative and Financial Reform Council held on October 11, 2023, that it is necessary to review the administrative and financial situation of Japan from the viewpoint of users, make the most of digitalization, maintain and strengthen public services, and revitalize the area economy to realize social change. It was difficult to advance the bidding time because it was finally adopted in December of the same year.
It seems that the ministries and agencies mainly in charge of semi-public sector have been naturally implementing the process of surveying users and reflecting the improvements made there in measures. What is the difference between the service design approach and the policy of collecting information from existing users?	In the past, when formulating policies in public authorities, Japan, we did not have the opportunity to hear from individuals or observe them. I believe that one of the important points is that we were able to obtain on-site awareness in the service design process. In addition, based on the premise that what public authorities has created is not wrong, it is said to be a "myth of inerrancy" of the administration, but in the service design process, it is significant to review what is based on the premise of such policy formulation. To be specific, it is necessary to improve what is established once, and there are various other elements in service design, so we would like to implement it in the policy formulation of this agency first and expand it to other ministries and agencies.
Semi-public sector is ultimately the practice of local local government, and I think it is significant for your agency to conduct a survey and consider whether to reflect it in future policies. What are your thoughts on the path to that point?	In the past, the government had decided to have a local local government implement it, but we thought it was necessary to know the end users and understand the employees of the local local government who would implement it, so we conducted a hearing. In the future, based on this evaluation, we believe that we will actually create a project for the local government in cooperation with the employees of the local semi-public sector and realize improvements.
Digitalization is to make routine work into a template, and it becomes non-routine by incorporating various ways of use in service design. If it becomes non-routine, it may not be able to enjoy the benefits of digitalization.	There is a initiatives called service desk DX that promotes digitalization by improving the window service of municipalities, but we believe that the process of service design observation can review the process of flow line and the process of action and improve it into an optimal routine process. In promoting digitalization, we believe that the value added of the public service to be provided will be increased by promoting improvement in a better form for everyone in digitalization and routine, and responding to the surplus time generated by the improvement of the process in the non-routine part.
What are the advantages and disadvantages of separate use of joint proposals and recommissioning, which is being carried out through joint proposals by the three parties in this procurement?	Although we have not conducted an analysis, etc. on the said matter, in the case of recommissioning, the contractor will also be responsible for the work of the subcontractor, and we believe that there is a considerable risk for SMEs and start-up companies. On the other hand, in the Joint Proposal, the location of responsibility, etc. is determined by the agreement for each field, so we believe that it will be easy for SMEs and start-up companies to make a initiatives.
Since you are working on service design as a simple IT tool, it is very valuable to know that you are working on the foundation of public service in terms of how to provide added values of procurement through how to use it. In addition, it seems that it was a more desirable service design in terms of utilizing knowledge so that SMEs and startups that you are working on can participate in bidding. We would appreciate it if you could aim for a more desirable procurement by making the viewpoint of known to the entire Agency.

Fiscal 2023 authentication App (second change contract) (third change contract) of development for individuals

Serial number: 24-09-03
Contract method: Discretionary contract (change contract)
Counterparty: Hitachi, Ltd.
Contract amount: 681,751,744 yen (second amendment contract), 988,144,132 yen (third amendment contract)
Contract date: March 1, 2024 (2024) (second amendment contract), March 29, 2024 (2024) (third amendment contract)

Comments and Questions	Answer
It is considered that the contract amount has increased considerably from the initial contract amount and the amount of work has also increased due to the series of change contracts. Is the successful bidder responding by increasing recommissioning in order to respond to the increased amount of work?	As a result of the addition of the change contract this time, there has been no significant increase in recommissioning, nor has the amount of work that cannot be received been transferred to the recommissioning party.
In the future, while the procurement will continue for this project, is there a prospect of at what stage the procurement will be switched to a new one without continuing the change contract?	It is difficult to answer about the future procurement schedule, but in general, unless there is no other way than to make a change in the contract, we believe that once the current contract period ends, we will select a contractor in accordance with the rules of procurement, such as conducting general competitive bidding.
In the case of bidding as a new contract, is there a business operator who can take over the business in a form that includes the knowledge up to now in the situation where the same business operator is in charge of the business continuously and the business has increased so far? Is there communication with other business operators?	In general, we believe that working on whether or not to switch to a business operator with the same or better skills as existing business operators will lead to the recognition that all order-receiving business operators, including existing business operators, are in a competitive situation. By conducting such a initiatives, we will strive to maintain appropriate procurement qualities.
The initiatives of procurement improvement is being carried out, but I would like it to be handed over to the successor when transferred so that this does not become a dependent.	All right.
In the operation of the rules on the Digital Agency change contract, what part did you feel was particularly problematic in operation, such as taking time and effort in procedures or becoming an obstacle?	Speaking only about this person in charge, it is true that the procedures associated with the change contract are necessary, but it is natural that a considerable amount of time and effort are required. However, in the current situation, the necessary change contract has been concluded, so in that sense, it is not a major obstacle.
We believe that in-house production is very important in the sense that you will accumulate know-how in your relationship with business operators and take leadership in project promotion. We would like to see this initiative lead to success, be shared within your agency as a successful experience, and expand the application to a reasonable extent. We would also like to see improvements made to enhance in-house production and create a better system.