For discussion FCR(96-97)53
on 19 July 1996

ITEM FOR FINANCE COMMITTEE

CAPITAL WORKS RESERVE FUND
HEAD 710 - COMPUTERISATION
Royal Hong Kong Police Force
Subhead A028YU Implementation of information technology strategy

Members are invited to approve an increase in commitment froom $289.77 million by $66 milllion to $355.77 million for the full implemetation of the Information Technology Strategy in the Royal Hong Kong Police Force.


PROBLEM

The revised commitment of $289.77 million1 for the implementation of the Information Technology Strategy (the Strategy) in Royal Hong Kong Police Force is inadequate to cover the implementation of all application systems in the Strategy.

PROPOSAL

2. The Commissioner of Police (CP), with the support of the Secretary for Security and the Director of Information Technology Services (DITS), proposes to increase the revised commitment under Head 710 Computerisation Subhead A028YU from $289.77 million by $66 million to $355.77 million.

JUSTIFICATION

3. The main objective of the Strategy is to enable the Police to make use of modern information technology (IT) to maximise the utilisation of available resources and hence deliver speedy and quality service to the public. As a result, CP will be able to delete 569 posts upon full implementation of the Strategy.

4. The Strategy consists of five major application groups with 24 application systems connected by a Police Data Communication Network (PDCN). Since the approval of the Strategy in January 1993, we have completed seven systems. Development is continuing on a further nine systems, four of which will go live during this financial year. A summary of the progress to date is at Enclosure 1.

Need for non-recurrent commitment

5. CP conducted a comprehensive review in late 1994. The findings indicated that the revised project estimate was likely to be insufficient for full implementation of the Strategy. CP has therefore taken a series of measures to contain costs. Having reviewed the position in early 1996, CP concluded that he needed an additional $66 million, including $6 million for a 10% contingency, in non-recurrent expenditure. The increase in cost is mainly due to -

(a) Technological advances

(i) PDCN

The original plan for the PDCN was to build on and extend the existing proprietary mainframe computer network of the Force. However, it lacked the flexibility and capacity for coping with high volume data transmission between the heterogeneous computer systems and the ever increasing terminal population. After consultation with DITS, CP decided to adopt an intelligent high capacity network which would enable access to different applications from individual desk top terminals in an effective manner. This requires an additional expenditure of $23.5 million on additional sophisticated hardware and software.

(ii) Computer terminals

The revised commitment for the Strategy only allowed for the use of dumb terminals and low-end personal computers to cope with 5% increase in computer processing needs and data storage requirements per annum. In the light of technological advances and the higher than expected increase in workload (9%), CP requires high-end personal computers and additional hardware and software at an extra cost of $4.3 million.

(b) Increase in site preparation cost

The Director of Architectural Services advised that building services costs have increased by some 27% between 1992 and 1995. The terminal population spreads over 170 sites territory-wide. Many of these sites, particularly the older police stations, do not have adequate space and power supply for the installation of the new equipment, nor ducting for a structured cabling system. The additional works for ducting, electrical and building services installations require additional expenditure of $12 million.

(c) Shortage of in-house system development staff resources

The Force over-estimated the in-house IT staff resources that it could release for developing the Strategy in the original project estimate. The high average vacancy rate of Analysts / Programmers in the Force (11% in the past three years) has further impeded the progress of system development. As a result, CP has to engage more contract staff for developing the Strategy and estimates that he needs $20.2 million for hire of contract staff.

Cost-benefit analysis

6. When Members approved the capital funding for the Strategy in 1993, we estimated that the project would break even by 1999-2000 through saving of 569 posts. In the light of the progress to date and the programme for implementation of the rest of the Strategy, CP considers that the Force will be able to deliver the first batch of savings of 88 posts in this financial year and the remaining 481 posts in two phases by 1998-99. Taking into account the additional costs and the saving delivery schedule, we have updated the cost benefit analysis at Enclosure 2. This shows that the project will break even by 2002-03, three years later than the original plan.

FINANCIAL IMPLICATIONS

Non-recurrent expenditure

7. CP estimates that full implementation of the Strategy will require an additional non-recurrent expenditure of $66 million. A breakdown of the revised and recommended estimates is as follows -


Revised estimate
$'000

Recommended estimate
$'000

Increase
$'000

(a)

Hardware and software


(i) Network

17,990

41,490

23,500


(ii) Systems

231,170

235,470

4,300

(b)

Site preparation

16,630

28,630

12,000

(c)

System development services

3,880

24,080

20,200

(d)

Training

6,110

6,110

-

(e)

Conversion

380

380

-

(f)

Contingency

13,610

19,610

6,000

Total

289,770

355,770

66,000

8. As regards paragraph 7(a)(i), the increase of $23.5 million is to meet the additional costs of additional hardware and software for the PDCN.

9. As regards paragraph 7(a)(ii), the increase of $4.3 million is for the procurement of high-end computer terminals and additional hardware and software to allow the Force to take advantage of technological advances.

10. As regards paragraph 7(b), the increase of $12 million is due to additional works in cable routing, building services installations at user sites and building of the network infrastructure connecting all heterogeneous computer systems.

11. As regards paragraph 7(c), the increase of $20.2 million is for the hire of 320 man-month of contract staff for the design and development of the systems in the Strategy and to meet increase in rates of payment to contract staff over the years.

12. Subject to Members' approval of the additional commitment, we estimate that the cashflow will be as follows -


$'000

1997-98

35,370

1998-99

30,630

Total

66,000

Recurrent expenditure

13. This proposal will give rise to additional annual recurrent expenditure as follows -


1997-98
$'000

1998-99
$'000

1999-2000
and annually
thereafter
$'000

(a) Hardware and software maintenance

600

600

600

(b) Maintenance of network and rental of additional communication facilities

12,400

12,400

12,400

(c) Staff costs

12,601

12,601

11,260

Total

25,601

25,601

24,260

14. As regards paragraph 13(a), the expenditure includes the maintenance cost for the additional computer hardware and system software.

15. As regards paragraph 13(b), the expenditure covers additional maintenance cost of the network and rental of additional communication facilities in support of the PDCN.

16. As regards paragraph 13(c), the expenditure represents the costs of 18 additional staff that CP would require for system management and user training on a recurrent basis and three temporary additional staff for 1997-98 and 1998-99 for user training. In seeking Members' approval for funding of the original project, CP inadvertently omitted the requirements of additional posts for system management and training. Given that major systems, such as the Communal Information System and the Personnel Information Communal System, will affect the operation and administration of the Force as a whole, CP needs additional staff to manage the systems and organise training. CP also envisages that the demand for user training is particularly heavy in the initial period of commissioning and therefore requires temporary additional posts. Details of the additional posts are at Enclosure 3.

OTHER ALTERNATIVES CONSIDERED

17. One alternative is to implement the Strategy according to the original plan. CP considers this alternative unacceptable as it would produce an out-dated computer system.

18. The other alternative is to drop the eight remaining systems. CP also considers this alternative unacceptable because without these systems, the Force and the public will not achieve the originally planned improvements such as shorter waiting time for reporting traffic accidents, more efficient processing of licences and speedier identification of suspects. A list of the expected benefits of these eight systems is at Enclosure 4.

BACKGROUND INFORMATION

19. On 29 January 1993, Members considered FCR(92-93)116 and approved a new commitment of $299.37 million for implementing the Police IT Strategy in full by 1997-98. The commitment was revised to $289.77 million for the reason set out in footnote (1).

20. Since then, the Force has realised the following benefits from the systems implemented so far -

  1. reduction in time for crime searches from one week to four minutes;
  2. maintenance of documents of the Criminal Intelligence Bureau on 13 compact disc instead of in strong rooms;
  3. production of bilingual printed charges in the same amount of time required for the production of printed charges in English only;
  4. availability of examinations results for new recruits in four hours instead of three days;
  5. speedy distribution of documents Force-wide in minutes via electronic mail; and
  6. saving of 88 posts in this financial year.

Security Branch
July 1996

1 -- The approved project estimate was $299.37 million which included contract staff for system development. In order to release in-house staff to develop new systems in the Strategy, we have deleted a sum of $9.6 million from the approved project estimate to offset the costs of contracting out the system support services for two existing systems. We have therefore reduced the project estimate from $2997.37 million by $9.6 million to $289.77 million.


Enclosure 1 to FCR(96-97)53

Police Information Technology Strategy Progress of Development

1. Communal Information Systems

Application Group/Systems

Progress as at June 1996

(a) Formation Information Communal System (rename of Station Information Communal System)

At final development stage, target to roll out in October 1996.

(b) Regional Information Communal System

Now in feasibility study.

(c) Headquarters Information Communal System

Scheduled for feasibility study in late 1996.

2. Force Criminal Investigation Support Systems

Application Group/Systems

Progress as at June 1996

(a) Computer Assisted Fingerprint Identification System Phase II

At implementation stage, target to roll out in October 1996.

(b) Commercial Crime Fraud Investigation

Went live in April 1994.

(c) Facial Identification

Not started yet.

(d) Photo Album

Not started yet.

(e) Replacement of Modus Operandi Search and Identification by Computer

Went live in July 1995.

(f) Extension of the Major Incident Investigation and Disaster Support System

Deleted as the maximum capacity of the existing system not yet reached.

(g) Records Management

System for Criminal Intelligence Bureau went live in February 1995; systems for Criminal Record Bureau and Narcotics Bureau not started yet.

3. Force Operations Support Systems

Application Group/Systems

Progress as at June 1996

(a) Traffic Operations and Management

Not started yet.

(b) Transport Management Information System (rename of Integrated Traffic Management Information System)

Scheduled for feasibility study in late 1996.

(c) Central Licensing and Registration

Systems for miscellaneous licences and registration not started yet; the minor system for societies notification went live in May 1996.

(d) Force Mapping

Not started yet.

4. Force Administrative Support Systems

Application Group/Systems

Progress as at June 1996

(a) Personnel Information Communal System (PICS) (rename of Personnel and Training)

At user acceptance stage, target to roll out in August 1996.

(b) Accounting and Financial Management

Scheduled for feasibility study in September 1996.

(c) Allowance Processing

Not started yet; to be incorporated as part of Police Accounting System in Treasury.

(d) Leave Recording

At development stage, target to roll out in 1997.

5. Free-standing Systems

Application Group/Systems

Progress as at June 1996

(a) Police Training School

Went live in May 1995.

(b) Police Stores

Not started yet.

(c) Marine Police Launch Management

Implemented as part of Government Fleet Information System in Marine Department.

(d) Auxiliary Police Management

Incorporated as part of PICS; at user acceptance stage, target to roll out in August 1996.

(e) Security Wing

Went live in August 1995.

(f) Planning and Development

Went live in April 1996.

6. Police Data Communication Network

Application Group/Systems

Progress as at June 1996

(a) Police Data Network

At implementation stage.

(b) Police E-mail Network

Went live in March 1996.


Enclosure 2 to FCR(96-97)53

Cost-benefit Analysis of Police Information Technology Strategy

1993-94
$'000

1994-95
$'000

1995-96
$'000

1996-97
$'000

1997-98
$'000

1998-99
$'000

1999-2000
$'000

2000-01
$'000

2001-02
$'000

2002-03
$'000

2003-04
$'000

(a) Non-recurrent costs

(i) Capital account expenditure

(ii) In-house staff cost

1,340

12,150

11,960

31,520

34,570

43,120

180,630

39,840

96,640

17,150

30,630

0

0

0

0

0

0

0

0

0

0

0

(b) Recurrent costs

0

200

3,200

13,050

74,000

74,000

72,660

72,660

72,660

72,660

72,660

(c) Total costs [(a) + (b)]

13,490

43,680

80,890

233,520

187,790

104,630

72,660

72,660

72,660

72,660

72,660

(d) Realisable benefits

0

0

0

20,270

128,930

180,500

180,500

180,500

180,500

180,500

180,500

(e) Net benefits [(d) - (c)]

(13,490)

(43,680)

(80,890)

(213,250)

(58,860)

75,870

107,840

107,840

107,840

107,840

107,840

(f) Cumulative benefits

(13,490)

(57,170)

(138,060)

(351,310)

(410,170)

(334,300)

(226,460)

(118,620)

(10,780)

97,060

204,900


Enclosure 3 to FCR(96-97)53

Recurrent Staffing Requirements for Police Information Technology Strategy

Posts permanently required -

(I)

System Management

(a)

Overall supervision

1 Superintendent of Police

(b)

Communal Information System

1 Chief Inspector of Police

3 Inspector of Police / Senior Inspector of Police

1 Clerical Officer I

1 Clerical Officer II

(c)

Personnel Information Communal System and Leave Recording

1 Inspector of Police / Senior Inspector of Police

1 Police Constable

1 Executive Officer II

1 Senior Clerical Officer

2 Clerical Officer II

(II)

User Training

4 Station Sergeant

1 Sergeant

Total

18 posts

Posts required for 1997-98 and 1998-99 only -

User Training 3 Sergeant

For 1997-98 to 1998-99, the annual staff cost and notional annual mid-point salaries for 21 posts will be $12,601,000 and $6,980,000 respectively

For 1999-2000 and thereafter, the annual staff cost and notional annual mid-point salaries for 18 posts will be $11,260,000 and $6,244,000 respectively.


Enclosure 4 to FCR(96-97)53

Eight Remaining Systems in the Information Technology Strategy

System

Tentative development priority

Main consequential benefits

Traffic Operations and Management

1

improvements in service to the public through more efficient and simpler accidents reporting procedures

more efficient handling of bail and charging of offenders

easier analysis of traffic accidents and causation factors

simplified planning of road safety campaigns

more efficient administration of the management of road closures, etc. caused by road works

improvements in handling of vehicles towed by police

Records Management System

(Criminal Record Bureau and Narcotics Bureau)

2

better security and integrity of source documents

more accurate indexing of record

availability of duplicate copies of documents

savings in space and accommodation

speedy and more efficient retrieval

Police Stores

3

improvements in inventory control

reduction in stocking levels and space requirements with just-in-time deliveries

computerisation of various statistics

more efficient use of government funds

Facial Identification

Photo Album

4

5

improvements in services to the public with distributed facilities

speeding up the preparation of facial drawings

potential for improvements in crime prevention through early identification of suspects

greater deterrent to crime activities

speedy updating of criminal photo albums

Central Licensing and Registration

6

improvements in and faster service to the public

reduction in the use of manual registers and index cards

automation of the compilation of statistical returns

Force Mapping

7

improvements in crime prevention

up-to-date street maps readily available

better planning of beat patrol and operations

prompt and accurate information in serious crime / internal security situations

Allowance Processing

8

elimination of manual calculation errors

substantial reduction in routine, repetitive and mundane administrative procedures

more effective monitoring of expenditure on allowance


Last Updated on 2 December 1998