The department has been pursuing cost-effective outsourcing to meet the government's initiative for increased private sector participation in the provision of public services. The ongoing programme of outsourcing is one of the key means in enhancing the department's efficiency and to achieve further savings.
In drawing up its plans, the department follows a pre-determined set of principles:-
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it must be cost-effective; |
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there should be no resultant lowering in the standard of service; |
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the contract is viable; |
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the department should maintain adequate in-house capability of providing the core services to safeguard against contractors' default; and |
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there should be no resultant staff redundancy. |
The department has contracted out the management of The Jockey Club Tuen Mun Butterfly Beach Sports Centre since February 2000 and five other sports centres — Quarry Bay, Island East, Chun Wah Road, Cheung Sha Wan and Chuk Yuen — since July 2001. The main objectives in contracting out management services are to introduce commercial operations into the running of the centres to enhance the quality of services for the public and to deliver the services in a more cost-effective manner.
Plans are in hand to contract out the management of a further four sports centres in April 2004.
The department is also proceeding on an outsourcing exercise to contract out the back-end system of URBTIX by 2005, under which an advanced ticketing system would be delivered and maintained by a private ticketing service provider. However, the department will retain the front-end administration and existing staff necessary to maintain the high quality operation of the ticket outlets at its venues.
Contract Management
The Working Group on Contract Management was set up in mid-2000 to oversee all contract management issues. It provides a forum for divisions to discuss and conclude the way forward on matters relating to tender terms and the managing of contracts.
Some of the achievements in the past year include:
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drafting a 'self-contained' tender format for security guard and cleansing service contracts; |
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preparation of authenticated Chinese version of the standard marking schemes for the provision of cleansing, security guard and horticultural maintenance services; |
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organising seminars on procurement and contract management matters once every six months, with the two seminars in 2003 attended by over 300 staff; |
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uploading and updating information on supplies, procurement and contract management matters on the LCSD Intranet Data Library to provide quick reference for staff; |
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requesting contractors to display their committed wage level and maximum allowable working hours for workers at assembly points in LCSD venues to better safeguard the interests of their staff; and |
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launching of the on-line Contract Item System which allows users to raise orders for the supply of goods and conduct subsequent contract monitoring. |
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