ASIA PACIFIC ECONOMIC COOPERATION
TRANSPORTATION WORKING GROUP

FOURTEENTH MEETING - SEOUL

OCTOBER 1998

Submitted by Australia

September 1998

Agenda Item 7

PURPOSE:

To seek the TPT-WG's agreement to the actions required to implement Phase 1 of the electronic commerce project for which approval of APEC funding of US$ 67,000 is expected to be endorsed by Ministers in November 1998.

A. BACKGROUND

At its 13th meeting in Mexico, the TPT-WG agreed on a proposal to seek APEC funding for Phase 1 of a project designed to assist businesses, involved with international transport, to implement electronic commerce systems that best meet their needs.

Funding of US$ 67,000 for Phase 1 of the project was approved by the BAC at its meeting in Singapore on 29-31 July 1998. This approval is expected to be endorsed by the SOM in September 1998 and by Ministers in November 1998. It should be noted that this funding will only cover the cost of the consultant, or consultants, engaged for Phase 1 and the preparation and printing of the final report of this phase.

The purpose of this paper is to highlight to TPT-WG members the actions that will be needed to implement Phase 1 of the project.

B. ACTIONS TO IMPLEMENT PHASE 1

Implementation of the project agreed by the TPT-WG requires the following matters to be finalised at the TPT-WG's 14^th meeting in Seoul (19 to 23 October 1998):

1. Details concerning participants in the project.
2. Procedures for managing and oversighting the project.
3. Procedures covering the "Request for Proposal" (ie. tenders).

a) Details concerning participants in the project

In order to include sufficient details about the task involved (eg. how many economies to be visited) in the Request for Proposal (RFP), it will be essential for economies to provide the following information to Australia, as project coordinator, prior to (but no later than) 19 October 1998 (first day of the TPT-WG's 14^th meeting):

• names of economies wishing to obtain assistance under the project, together with details of their local project coordinator and businesses wishing to participate in the project.

Economies in which electronic commerce courses are to be run under Phase 1 of the project, will need to provide a suitable venue with the required supporting facilities (eg overhead projector, desks for workshop sessions, etc).

b) Procedures for managing and oversighting the project

A small Steering Committee will need to be established to oversight the project on behalf of the TPT-WG. The composition of the Steering Committee should be agreed at the Electronic Commerce Group meeting in Seoul on 19 October 1998. The Steering Committee will need to agree on the procedures concerning the issuing and evaluating responses to the Request for Proposal along the lines proposed in c) below.

c) Procedures covering the Request for Proposal (RFP)

The Steering Committee will work with the APEC Secretariat to ensure that the required procedures for approving the RFP and the selection of a consultant (or consultants) for Phase 1 are met. Because of the time frames involved it is proposed that the selection process for the consultant (s) be conducted by correspondence or electronic mail. A copy of the proposed RFP is attached.

Assuming that final funding approval has been received, it is proposed that interested economies advertise the RFP through their own media outlets on the same date and for the same period. Those economies would then select the top three responses and forward these to the APEC Secretariat. The Secretariat will then forward responses to the Steering Committee which will select and rank the top three responses and send them to the Secretariat for final decision and processing of contractual arrangements.

3. PROPOSED TIMETABLE FOR PHASE 1

Date Action

4. INDICATIVE TIMETABLE FOR DRAWDOWN OF APEC FUNDING IN 1999

Note:

Details of payment arrangements and timetable for conducting courses would be subject to negotiation.

E. RECOMMENDATIONS

It is recommended that, subject to obtaining final funding approval from Ministers,

the TPT-WG agree to the following matters contained in Document TPT/WG14/………

1. the actions to implement Phase 1 of the project as outlined in section B;
2. the proposed timetable in section C;
3. the indicative timetable for drawdown of APEC funding in section D; and
4. the Request for Proposal attached to the document.

Summary

This Request for Proposal (RFP) invites suitably qualified consultants to submit proposals to provide services required under Phase 1 of an electronic commerce project. The project will be conducted under the guidance and oversight of a Steering Committee, established by the APEC Transportation Working Group (TPT-WG).

The purpose of Phase 1 of the project is to provide participants with a sound base of knowledge and skills in electronic commerce to enable them to install electronic commerce systems in their businesses, and prepare them for the trialing of messages under Phases 2 and 3 of the project.

Phase 1 is to commence in June 1999 and be completed in November 1999.

An outline of the three phases of the project is at Appendix 1. Separate RFP's will be sought for Phases 2 and 3. There could be a possibility that the project will be undertaken jointly with the CTI Sub-Committee on Customs Procedures (SCCP) which is leading an electronic commerce project "SCCP Program to Implement UN/EDIFACT electronic message standards".

Objective

The objective of this consultancy is to deliver courses that will:

• assist businesses (including Government owned) involved with international transport and related trading activities to implement electronic commerce systems that best meet their needs;
• provide examples of successful implementation of various forms of electronic commerce so that businesses can more readily judge the system best suited to their needs;
• demonstrate the process for implementing electronic commerce in a consistent manner which is compatible with as wide a range of trading partners as practicable. This will enable the benefits of electronic commerce in APEC economies to be maximised;
• identify and assist in removing technical and business barriers to the adoption of electronic commerce and increase the capability of businesses in APEC economies to adopt this technology;
• prepare participants for the trialing of messages under Phases 2 and 3 of the project.

Background

Increasing the electronic commerce capability of businesses in APEC economies will make a significant contribution to facilitating the development of efficient systems for the international transport of sea and air freight. The issue of electronic commerce in transport, and how best to promote its cost-effective use, has been on the TPT-WG's agenda for several years.

Phase 1 Terms of Reference

Under Phase 1 of the project, the consultant will be required to develop and conduct a five day course in each of the following [eight] APEC economies:

• (the economies to be nominated for this purpose will need to be finalised and agreed at the 14^th TPT-WG meeting)

On completion of each course the Consultant will be required to submit a report containing information (including effectiveness) about the course work delivered.

All documentation associated with this consultancy is to be in English.

In order to complete Phase 1 within the required time it is possible that more than one consultant could be selected, if this is considered to be a cost/effective arrangement.

Prospective consultants are free to propose variations to the project outline which they consider will improve the outcomes. Also, they should advise on the most cost effective way of planning the course dates. In this regard it would improve cost/effectiveness if the selected consultant (s) could cover at least two economies in each tour to deliver Phase 1 courses.

Project Oversight

The Consultant (s) will be subject to directions from the Project Overseer who will chair the TPT-WG's Steering Committee. This Committee will work with the APEC Secretariat in respect of the arrangements and procedures contained in Appendix 2.

Timing

Bidders for this consultancy should be aware of the following indicative timetable:

29 January 1999: Closing date for receipt of responses to this RFP.

30 March 1999: Complete selection process for consultant (s) for Phase 1.

20 April 1999: Sign contracts with consultant (s)

1 June 1999: Consultant(s) to commence work required under Phase 1

15 November 1999: Complete delivery of courses required under Phase 1

Proposals

Bidders should demonstrate their ability to meet the project requirements in a formal proposal incorporating the following components:

• outline of methodology;
• qualifications and experience for the required task;
• previous experience on similar tasks;
• proposed timetable;
• itemised budget covering charges for services to be provided; and
• preferred payment arrangements.

Lodgment of Proposals

Bidders must lodge one original and three copies of their detailed proposals via registered mail or courier. Proposals must also be submitted by e-mail. Addresses are as follows:

(relevant postal/courier and e-mail addresses to be inserted by each economy advertising the RFP).

Proposals, will be subject to the guidelines set out in Appendix 2, and must be received by 5 pm on Friday 29 January 1999.

Selection Process

Proposals submitted by prospective consultants will be assessed on the basis of:

• soundness of methodology;
• suitability of consultant;
• attention to detail;
• demonstrated technical expertise in developing and delivering electronic commerce courses similar to the ones required under Phase 1;
• awareness of the objectives of the APEC region and the goals of the TPT-WG's electronic commerce project work; and
• value for money.

This RFP is being advertised within other TPT-WG economies which will select the top three responses and forward these to the APEC Secretariat. The Secretariat will then forward the responses to the Steering Committee for this project, which will select and rank the top three responses and send them to the Secretariat for final decision and processing of contractual arrangements.

Budget

The maximum budget allocated for this consultancy (ie. Phase 1) is US$ 67,000 and bids must not exceed this figure.

Payment Arrangements

Payment arrangements will be subject to negotiation.

Project Management

All inquiries on this document should be directed to the project overseer:

Ms Joanne Blackburn
Assistant Secretary
Maritime Transport Group
Department of Workplace Relations and Small Business
GPO Box 9879, Canberra City, ACT 2601
AUSTRALIA.

STEERING COMMITTEE FOR ELECTRONIC COMMERCE PHASE 1 CONSULTANCY - (TPT/……)

 APPENDIX 1

To provide participants with the knowledge and ability to implement electronic commerce (EC) systems for commercial transactions.

Phase 1 Introduction To Electronic Commerce

• Introduction

• systems available and general characteristics
• current situation with use of EC use in international trade
• awareness of EC projects in APEC groups and how these can be used by participants in current project
• Associations for facilitating adoption of EC

• Functions and uses of EDI
• EDI Standards including EDIFACT process
• Functions and uses of E-Forms and e-mail
• Facilities for linking E-Forms to EDI through bureau services
• Costs and benefits of different EC systems
• Use of the Internet
• Use of Value Added Networks (VANs)
• Role of software suppliers and availability of software for particular functions. Consider availability of local software.
• Security of information and authentication of electronic documents
• Documentary flows for commercial transactions in sea and air freight and how EC can be used to simplify and make the process more efficient
• Open forum discussions/questions/answers relevant to implementation of EC
• Development of national strategies for extending use of EC to as many trading partners as practicable both within economies and overseas
• Processes for establishing trading partners including Trading Partner Agreements for doing business electronically
• Requirements for businesses to get set up to trial exchange of EDI messages with trading partners including re-engineering business processes to obtain maximum advantage from operating in an electronic environment
• Practical exercises to test the extent to which lectures and presentations have been understood

• Participants will have developed a sound base of knowledge and skills in electronic commerce to enable them to install electronic commerce systems in their businesses and to prepare for trialing messages.

Phase 2 Trials Of Electronic Messages

• Finalise agreement on what EC messages are to be used by individual participating businesses
• Finalise fitting of software for trialing of messages
• Commence trialing messages
• Resolve problems arising from trials

• Participants will have trialed the use of a number of electronic commerce messages and experienced the processes involved, including the resolution of problems.

Phase 3 Finalise Trials And Commence Use Of Electronic Messages For Actual Business Transactions

• Finalise trials of the key electronic commerce messages that individual participants wish to use.

• Commence the successful use of electronic commerce messages for actual business transactions and resolve any further difficulties that may arise.

• Participants will have completed testing the use electronic commerce messages for the transactions required in their particular business.

CONDITIONS OF THIS REQUEST FOR PROPOSAL

1. APEC PREFERENCE PROGRAM

It is the policy of APEC to award contracts to firms from Member Economies when this can be done consistent with an expectation of efficient performance of the Contract, at prices no higher than are obtainable elsewhere, and which can be done without restricting competition. If subcontractors are used, the Contractor shall use its best efforts to place subcontracts in accordance with this policy.

2. ASSIGNMENT

Assignment of the Contract or any benefit arising thereunder or any interest therein will be grounds for terminating the Contract at the option of the APEC Secretariat.

3. CHANGES TO SCOPE OF CONTRACT

The terms of the Contract may be varied only by written agreement between the APEC Secretariat and the Contractor.

4. CONTRACTOR LIABILITY FOR PERSONAL INJURY AND/OR PROPERTY DAMAGE

The Contractor indemnifies and holds harmless the APEC Secretariat for loss or damage or injury suffered by any person, however and wherever caused, by the Contractor, its employees, agents and contractors during the performance of the Contract.

5. DEFAULT

5.1. In the event of a Default by the Contractor, the APEC Secretariat shall write to the Contractor setting out the Default. If the Contractor fails to remedy the Default within the time specified in writing by the APEC Secretariat, the APEC Secretariat may forthwith terminate the Contract without prejudice to the rights of any parties accrued to the date of termination.

5.2. A Default means any breach of a condition of the Contract or any substantial breach of a warranty in the Contract, including, but not limited to:

(a) failure to perform the Contract within the agreed time, or

(b) failure to deliver equipment of adequate capability, quality or reliability.

 

6. DISPUTES

In the event of any dispute concerning the meaning to be given to any term in the Contract, a determination by the APEC Secretariat in writing as to the meaning shall be final and conclusive.

7. EXAMINATION OF RECORDS

The APEC Secretariat, or its designated representative, shall have access to the Contractor's directly relevant books, documents, papers, and other records involving transactions related to the Contract. This access shall commence from the date of signing of the Contract and shall continue for a period of 3 years following the completion of the Contract.

8. RIGHTS IN DATA - GENERAL

The APEC Secretariat shall be deemed the owner of, and shall be deemed to have full rights (including copyright) in all data, regardless of form, format, or media, resulting from performance of the Contract, all data regardless of form, format, or media, used in performing the Contract; all data delivered under the Contract constituting manuals or instructional and training material; all processes delivered or furnished for use under the Contract; and all other data delivered under the Contract.

Subject to the prior written approval of the Executive Director of the APEC Secretariat ("the Executive Director"), the Contractor may have the right to use, release to others, reproduce, distribute, or publish any data first produced or specifically used by the Contractor in the performance of the Contract. For example, the information may be used to promote economic development with any benefits accruing to the originator.

The APEC Secretariat may deliver to the Contractor data necessary for the performance of the Contract. Title to APEC Secretariat furnished data remains with the Secretariat. The Contractor must use any data which it receives from the APEC Secretariat only in connection with the Contract.

To the extent it receives or is given access to data necessary for the performance of the Contract which contains restrictive markings, the Contractor shall treat the data in accordance with such markings unless otherwise specifically authorised in writing by the Executive Director.

The Contractor shall not disclose any information received or generated under the Contract, unless its release is approved in writing by the Executive Director and shall assert any privilege allowed by law to defend vigorously the APEC Secretariat’s rights to confidentiality.

9. SUSPENSION OF WORK

The Executive Director may, at any time, by written order to the Contractor, suspend all, or any part, of the work, if any, being carried out by the Contractors, its officers, employees, agents or subcontractors, for a period of up to 90 days after the order is delivered to the Contractor, and for any further period as the circumstances may require at the discretion of the Executive Director. Upon receipt of the order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimise the costs incurred by the stoppage relevant to the work covered by the order. Any associated adjustment to the Contract price and/or time for completion will be negotiated between the Executive Director and the Contractor.

10. TERMINATION FOR CONVENIENCE OF THE SECRETARIAT

The Executive Director, by written notice and without giving any reasons therefor, may terminate this Contract, in whole or in part as he sees fit by issuing a Notice of Termination. If this Contract is terminated, the rights, duties, and obligations of the parties, including compensation to the Contractor, shall be negotiated between the Executive Director and the Contractor, but in no event shall it exceed the total value of the Contract.

After receipt of a Notice of Termination and except as directed by the Executive Director, the Contractor shall immediately stop work as specified in the notice.

After termination, the Contractor shall submit a final termination settlement proposal to the Executive Director in the form and with the certification prescribed by the Executive Director. If the Contractor fails to submit the termination settlement proposal within the time allowed, the Executive Director may determine, on the basis of information available, the amount, if any, due to the Contractor because of the termination and shall pay the amount so determined.

11. LANGUAGE

All drawings, documents, information, correspondence, test reports and such like items shall be in the English language.

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