UNDP information regarding tender case UNDP RFP UKR/2015/97 “Development of Software of Electronic Asset Declaration System for Ukraine”May 25, 2017
In order to satisfy the public interest and in response to incorrect information circulating in the media about the case in question, UNDP in Ukraine is sharing the following details regarding UNDP tender UKR/2015/97 “Development of Software of Electronic Asset Declaration System for Ukraine”:
1. The selection and contracting of a software developer to build the code for the Unified Register of Declarations of Persons Authorized to Fulfil State and Local Government Functions was launched upon an official request from the Ministry of Justice of Ukraine (letter №11-41/1220 as of 16 September 2015). The selection was carried out by a Selection Committee comprising representatives of UNDP and the World Bank. The Selection Committee acted in full alignment with set rules and regulations of UNDP (including those that pertain to the realm of procurement).
2. The terms of reference for the development of software for the e-declaration system in Ukraine were developed by the World Bank specialists as part of the overall technical assistance package rendered to Ukraine. The decision regarding commencement of the system creation was approved through the Cabinet of Ministers of Ukraine Order № 863-р as of 28 August 2015 “Issue of Creating the Electronic Instrument for Financial Control Regarding Persons Authorized to Fulfil State and Local Government Functions”.
3. An open call for tender to select the software developer was announced on 28 September 2015 and was completed on 18 October 2015. More details regarding conditions of the tender are publicly available.
4. UNDP received a total of 10 proposals. Out of these 10 packages, one was rejected by the electronic mailing system as having a virus. UNDP had immediately verified that case, having appealed with due queries to the UNDP Headquarters IT Department, as well as Microsoft Corporation that renders electronic mailing services for the organization. It was indeed confirmed to us that the archive with the proposal of the company in question was infected with a virus and – consequently – was automatically removed from the corporate mailing system. The company in question was duly informed of the incident. There were no similar incidents with any other proposal submitted to the tender.
5. In October-November 2015, the Selection Committee appraised the packages that came in for the bidding (the number of applications equalling 10).
6. Overall, from amongst 10 proposals, 3 failed to pass the pre-qualification criteria: 1 due to an infected archive (as described above) and 2 due to lack of proven experience and failure to showcase the required information on personnel that would be working on the project. After a detailed assessment of the remaining 7 proposals, 4 have passed the minimum technical qualification criteria of 70%. As a result, their financial proposals were opened. The highest overall score (combination of technical criteria and lowest price) was received by “Miranda LLC”. The relevant contract was therefore signed. More details regarding conditions of the contract which is subject to the UNDP General Conditions for Professional Services are publicly available.
7. The assessment of the technical qualification criteria included, amongst other things, analysis of previous experience in the last 5 years (a list of clients that had received services akin to those requested by UNDP), collection of feedback from previous clients, analysis of the proposed approach to the development of the software to underpin the electronic declaration system in Ukraine, analysis of previous work samples of identical complexity, as well as assessment of key personnel’s qualifications, which included verification of their CVs demonstrating qualifications, their roles in the team, and availability for the entire duration of the contract. According to the contract, any changes in the key personnel shall require prior written approval of UNDP authorised representative. Moreover, in the event the contractor requires the services of sub-contractors, the contractor shall obtain the prior written approval and clearance of UNDP for all sub-contractors.
8. In order to ensure the quality of works, a Quality Assurance Group was formed comprising representatives of the Ministry of Justice, NACP, the World Bank and UNDP. Payments under the contract (the total amount is $116,900.00, including $19,483.33 of VAT) were broken down into installments, and each transaction was conducted only upon acceptance of each work stage and as a result of signing the relevant protocol by the Quality Assurance Group.
9. The quality and suitability of the system’s software, including on digital submission, storage, publication and personal data protection standards, was officially vouched on two occasions:
· On 10 May 2016, by the Quality Assurance Group,
· On 21 July 2016, by an inter-agency working group composed of experts from NACP, the Ministry of Justice, the State Agency on e-Governance, the State Service of Special Communication and Information Protection of Ukraine (SSSCIP), the World Bank and UNDP.
10. Based on this assessment, on 27 July 2016, UNDP handed over the software package to NACP, following successful tests results, clarification of all legal safeguards, and validation by all State agencies involved in its development. On 31 August 2016, SSSCIP issued the Certificate of Compliance with the Integrated Information Security System (IISS) for the Unified State Registry of Declarations of Persons Authorized to Perform State or Local Government Functions (Registry).
11. To ensure that submitted declarations are properly verified by NACP, a module of logical and arithmetic control of declarations and integration with other existing state registries was also developed by UNDP and offered to be transferred to NACP after the meeting of the Quality Assurance Group on 2 September 2016. The abovementioned request was reiterated to NACP during the UNDP Democratic Governance Programme Board meeting on 14 February 2017 by representatives of the Danish Ministry of Foreign Affairs who provides financial support for the development of the software. However, NACP did not accept to receive the module referring to technical justifications for this decision, which has not been made clear to UNDP.
12. In July 2017, NACP requested UNDP to include its representatives as observers to the Working Group on conducting an independent technical assessment of the Registry in order to test the module of logical and arithmetic control, developed with UNDP support. On 9 November 2017, NACP requested UNDP to finance implementing, updating the Terms of Reference (ToR) for IISS for Registry, and conducting an additional state assessment of IISS in connection with the transfer of the module of logical and arithmetic control of declarations. On 10 November 2017, UNDP handed over to NACP the module of logical and arithmetic control of declarations for responsible storage (with the right to use). At the same time, UNDP has undertaken to modify the module in line with NACP’s recommendations reflected in the new ToR. The modification of the module will be possible after NACP as the owner of the Registry provides the required complete information, listed in the UNDP request.