For discussion FCR(95-96)60
on 27 October 1995
ITEM FOR FINANCE COMMITTEE
CAPITAL WORKS RESERVE FUND
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
New Subhead Queensway Government Offices PABX System Replacement
Members are invited to approve a commitment of $19.6 million for replacing the existing PABX system (telephone system) at Queensway Government Offices.
The existing PABX system in the Queensway Government Offices (QGO) will reach the end of its expected life span by 1997.
2. We propose to replace the existing PABX system by 1997 at an estimated cost of $19.6 million.
3. The estimated life span of the existing PABX system, which was installed in 1985, is 12 years. After ten years in service, we encounter increasing difficulties in obtaining spare parts for the existing system as new models have come onto the market for some time.
4. The Director-General of Telecommunications has recommended replacement of the QGO PABX system. As a long lead time is required to arrange for tender and installation, we have to seek Members endorsement of the proposal now.
5. The existing system provides 3 108 extensions serving various government departments in QGO. The proposed replacement system will have an initial capacity of 3 200 telephone extensions, and be capable of handling an ultimate capacity of 4 000 extensions to cope with future demand. The proposed system will be equipped with a Voice Messaging System (VMS) which provides voice mailboxes to about 1 000 extension users. The voice mailbox automatically replies to an incoming call with a recorded voice message if the person being called upon is not in the office, and the caller can then leave a recorded message. This facility would improve office communication as well as service to members of the public.
6. The proposed time-table for implementation of the replacement system is as follows -
| (a) Detailed design, specification drawings and tender processing | April to September 1996
|
| (b) Award of contract | September 1996
|
| (c) Delivery of equipment | December 1996
|
| (d) Installation, commissioning and acceptance test | January to July 1997
|
| (e) Final acceptance | August 1997
|
7. The Director of Architectural Services, based on the advice of the Director-General of Telecommunications, estimates that the replacement will cost $19.6 million made up as follows -
|
|
$'000
|
|
(a) PABX equipment
|
|
|
(i) PABX main equipment
(with initial capacity of 3 200 extensions and ultimate capacity of 4 000 extensions)
|
6,000
|
|
(ii) 2 750 standard phones
|
1,375
|
|
(iii) 320 feature phones
|
640
|
|
(iv) 108 digital phones
|
324
|
|
(v) Standby battery and charger
|
400
|
|
(vi) Distribution frames
|
400
|
|
(vii) Block-wiring
|
500
|
|
(viii) Extension wiring
|
960
|
|
(ix) Installation and commissioning charge
|
1,000
|
|
(x) VMS
(with 48 ports and 120 hours of storage)
|
2,000
|
|
(xi) Telephone line installation
|
240
|
|
(xii) Contingencies
|
1,461
|
|
Sub-total
|
15,300
|
|
(b) Works
|
|
|
(i) Electrical installation
|
150
|
|
(ii) Fire services
|
170
|
|
(iii) Air-conditioning
|
350
|
|
(iv) Builders works
|
50
|
|
(v) Contingencies
|
80
|
|
Subtotal
|
800
|
|
(c) OFTAs professional charges
|
3,500
|
|
Total
|
19,600
|
8. As regards paragraph 7(c), the provision is to meet existing charges of the Office of the Telecommunications Authority (OFTA) Trading Fund in respect of the engineering overhead. The cost of $3.5 million reflects the full staff cost OFTA is required to put into the project and is made up as follows -
|
|
$'000
|
|
System design and planning
|
300
|
|
Building services and trunking planning
|
370
|
|
Drawing up of tender specification
|
300
|
|
Tender evaluation
|
400
|
|
Planning and coordination for system installation
|
300
|
|
System installation
|
900
|
|
Commissioning
|
600
|
|
Acceptance test
|
330
|
|
Total
|
3,500
|
9. Out of the $19.6 million, we will recover $3,153,000 as reimbursement from the following user departments which are subject to existing cross-departmental charging -
|
|
$000
|
|
(a)Urban Services Department
|
1,800
|
|
(b)Companies Registry
|
683
|
|
(c)Land Registry
|
670
|
|
Total
|
3,153 |
.
10. The estimated cash flow is as follows -
|
|
$'000
|
|
1996-97
|
9,110
|
|
1997-98
|
8,539
|
|
1998-99
|
1,951
|
|
Total
|
19,600 |
Subject to Members approval, we shall include sufficient provision in the 1996-97 draft Estimates.
11. We estimate that the additional annual recurrent expenditure including rental of additional lines is about $768,000.
Finance Branch
October 1995
Last Updated on 2 December 1998
