FCR(98-99)16
For discussion
on 17 July 1998ITEM FOR FINANCE COMMITTEE
CAPITAL WORKS RESERVE FUNDHEAD 710 - COMPUTERISATIONEducation DepartmentNew Subhead "Year 2000 Compliance Project for the Education Department"
Members are invited to approve a new commitment of $27,910,000 for rectifying the computer systems of the Education Department, including the standalone computers and software provided by the Education Department to schools for administration purpose, to ensure that they are Year 2000 compliant.
PROBLEM
The computer systems of the Education Department (ED) and standalone computers and software provided by ED to schools for administration purpose are not fully Year 2000 (Y2K) compliant. If not rectified in time, this will impair the operations of the department and its services to schools and the public.
PROPOSAL
2. The Director of Education (D of E) proposes to create a new commitment of $27,910,000 for implementing a Y2K compliance project to rectify the problem.
JUSTIFICATION
3. ED uses information technology (IT) widely to support its day-to-day operations and services to schools and the public. These include, for example, computer systems facilitating school administration and management, registration of schools and school managers, allocation of school places, etc. Most schools are connected to the school administration systems operated by the ED. Some 60 small schools with less than six operating classes each are provided with standalone computers and supporting software instead, as it is more cost-effective to do so. Some of ED's computer systems also interface with other government bureaux, departments and bodies such as the Hong Kong Examinations Authority.
4. Joint technical studies by ED and the Information Technology Services Department (ITSD) have concluded that a Y2K project must be in place to ensure that the computer systems of ED and the computer facilities provided to schools for administration purpose can continue to function effectively and provide uninterrupted service to users beyond the year 2000. The rectification works, which need to be completed by mid-1999, include upgrading or replacing system hardware and software which are not fully Y2K compliant, rectifying non-compliant administrative software applications developed in-house, and replacing the standalone computers and software provided to the small schools.
Cost-benefit analysis
5. As this project is to ensure the continued effective operation of the various computer systems or equipment in ED and schools beyond the year 2000, the normal cost-benefit analysis is not entirely applicable. However, successful completion of the project would avoid computer breakdowns and/or system failures which would disrupt the services of ED and the administration of schools.
FINANCIAL IMPLICATIONS
Non-recurrent cost for development and implementation
6. D of E estimates that the implementation of the Y2K Compliance Project will incur a total non-recurrent development and implementation cost of $27,910,000 for which we are seeking Members' approval. The estimated cost is made up as follows -
|
1998-99
$million
|
1999-2000
$ million
|
Total
$ million
|
|
(a)
|
Hardware and software
|
9.93
|
2.48
|
12.41
|
|
(b)
|
Implementation services
|
6.32
|
6.37
|
12.69
|
|
(c)
|
Data conversion
|
0.25
|
0.02
|
0.27
|
|
(d)
|
Contingency (10%)
|
0.53
|
2.01
|
2.54
|
|
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
Total
|
17.03
|
10.88
|
27.91
|
|
|
_____
|
_____
|
_____ |
7. As regards paragraph 6(a), the expenditure is for the acquisition and installation of computer hardware, software and network equipment including upgrading of some 6 900 copies of operating system software and 1 580 copies of communication software.
8. As regards paragraph 6(b), the expenditure is for acquisition of contract services including 0.12 man-year of project manager, 4.34 man-years of system analyst, 16.54 man-years of programmer and 1.3 man-years of temporary staff for development and implementation of the project.
9. As regards paragraph 6(c), the expenditure is for the hiring of 0.7 man-year of temporary staff for data conversion.
Non-recurrent staff cost
10. In addition, we estimate that the supervision, development and management of the project will require a total non-recurrent cost of $5,970,000 in terms of in-house staff resources of ED and ITSD. The estimated cost is made up as follows -
|
1998-99
$ million
|
1999-2000
$ million
|
Total
$ million
|
|
|
|
|
|
|
(a)
|
ED
|
2.25
|
0.63
|
2.88
|
|
|
|
|
|
|
(b)
|
ITSD
|
2.27
|
0.82
|
3.09
|
|
|
____
|
____
|
____
|
|
|
|
|
|
|
Total
|
4.52
|
1.45
|
5.97
|
|
|
____
|
____
|
____ |
11. As regards paragraph 10(a), the expenditure is for meeting the non-recurrent staffing requirements of ED including 2.7 man-years of Education Officer (Administration) grade officer, 0.2 man-year of Executive Officer grade officer and 0.9 man-year of clerical staff.
12. As regards paragraph 10(b), the expenditure is for meeting the non-recurrent staffing requirements of ITSD including 3.5 man-years of Analyst/Programmer grade officer.
13. The non-recurrent staffing requirements of ED and ITSD will be met by creation of additional posts and internal redeployment where appropriate. A supernumerary post of Chief Systems Manager approved by the Finance Committee (FC) on 20 March 1998 (EC(97-98)80) for the enhancement of use of IT in school education will also oversee this project.
Recurrent cost
14. As the Y2K project is a one-off rectification work, it will not incur any additional recurrent expenditure.
BACKGROUND INFORMATION
15. In mid-1997, ED and ITSD jointly conducted a technical study on Y2K compliance for the computer systems of ED. The study has established the need for a Y2K project to rectify non-compliant systems and equipment.
16. We submitted the Y2K compliance project together with the Target Oriented Curriculum System (TOCS) as components under Phase I of the Information Systems Strategy 1998 of ED, to FC of the Provisional Legislative Council in April 1998. Although Members of the then FC indicated support for the Y2K compliance project, the proposal was not approved due to Members' reservations on the TOCS. We have since expanded the scope of the Y2K compliance project to encompass the replacement of standalone computers and software provided to small schools and the upgrading of two more types of system software in view of the announcement made by their international suppliers after the last FC submission that they are of uncertain Y2K compliance status.
Education and Manpower Bureau
July 1998
