Epdf - A Guide to Slovaks' Public Administration

Transcription

1 The Concept of Software Products Usage for Public Administration

2 Table of Contents 1 Introduction Purpose of the document Context of the document Structure of the document Summary Objectives and background Objectives Goal of the document Legislative requirements and constraints Slovak legislation EU legislation Related strategic documents The concept of software products usage Vision of the SW products usage in public administration Requirements for SW products usage Requirements specified at the EU level Local (Slovak) requirements Principles of effective use of SW products Impacts of the implementation of the principles Encouraging open standards Software procurement Software usage training Factors affecting the selection of software Recommendations for the optimisation of SW product usage Legislation Organisation and processes Information and communication technologies Annex Basic terms used in the document Acronyms used

3 1 Introduction 1.1 Purpose of the document The purpose of the document is to define a framework strategy for the procurement, placement and operation of software products in the Slovak public administration environment in line with the egovernment development objectives set for the upcoming years and in compliance with EU requirements and recommendations. The document does not represent or is intended to define a strategy for the usage of concrete software products at the level of individual public administration bodies and institutions. 1.2 Context of the document Under government resolution No. 950 of 17 December 2008 concerning the report on the fulfilment of a multi-licence Microsoft Enterprise Agreement and a proposal for its extension, the Minister of Finance has been tasked to ensure the preparation of a Concept of Software Products Usage for Public Administration by 30 June Structure of the document The document is divided into the following chapters: Summary Objectives and background Concept for the SW product usage Recommendations for the optimisation of SW product usage 3

4 2 Summary New requirements with respect to the development of egovernment services will also require a new approach to the usage of software products. The public administration must ensure interoperability, transparency, security and flexibility of information systems, along with economical spending of budgetary funds for their purchase and operation. Cost reduction represents a medium- and long-term objective of the public administration. To that end, it will be necessary to consider a much wider range of possibilities for the procurement of necessary software then before. As implied by the trends recently observed in the European Union, an improved availability of alternative solutions in all areas of software technologies - from operating systems through to application software - has created room for the optimisation of choice for public administration purposes. The software industry is dynamically developing, bringing new and customer attractive solutions to the market very often. An ever increasing number of public institutions in Europe opt for software based on open source standards when considering the delivery of their IT services. The reason is that a portfolio of openstandard based software products has a significant positive impact in terms of reducing the total cost of ownership, while enabling the building of architecture that remains controlled by the public administration. An equally important reason is the interoperability and provision of non-discriminatory, generally accessible electronic services. The public administration in Slovakia has to take effective measures to guide the future use of software products in public administration and to enable cuts in costs and mitigation of risks associated with the building and operation of information systems. These measures are based on a set of principles which take into account EU requirements as well as local needs (e.g. arising from the objectives set under the OPIS) and affect legislative, organisational and process areas and information technologies. The measures seek maximisation of returns and benefits on public investments, contribute to a greater flexibility of choice, development, modification and integration of information systems, and encourage competition among IT providers (IT ecosystem) delivering products and services for public administration. The strategic vision contemplates the achievement of such a state of affairs when a public administration IT ecosystem is flexible, open and independent. The system will be characterised by a non-discriminatory approach to individual software manufacturers and providers, and active support to innovation. The ultimate effect of the proposed measures is what taxpayers expect - that the money they pay to the government is spent effectively and that they receive the best value for money in return. 4

5 3 Objectives and background The decision to prepare this concept is based on the need to provide guidance for the use of software products in public administration. This decision represents an important strategic step towards a more effective achievement of ambitious egovernment objectives set out for the nearest future, complying with EU requirements and recommendations. egovernment development objectives Requirements under Slovak legislation Concept of SW products usage Standards for information systems of Slovak public administration Requirements under EU legislation Fig. 1: Context of the concept 3.1 Objectives The Concept of Software Products Usage is an instrument that will help to set out the strategic course of public administration with respect to the use of software products in order to: reduce costs of information system implementation and operation; ensure a flexibility of choice, development, modification and integration of information systems; ensure interoperability of information systems; ensure continuous operation of information systems. 3.2 Goal of the document The goal of the document is to: ensure common understanding of the new approach to the use of software products in public administration; identify options to save costs throughout a whole life cycle of the usage of software products in public administration; identify subsequent steps necessary in order to implement the principles of effective use of software product in the upcoming year. 3.3 Legislative requirements and constraints The Concept of Software Products Usage for Public Administration has been prepared in compliance with the following legislation: 5

6 3.3.1 Slovak legislation Act No. 275/2006 Coll. on information systems in public administration and on amendments to certain acts as amended; Act No. 25/2006 Coll. on public procurement and on amendments to certain acts as amended; Decree of the Ministry of Finance of the Slovak Republic No. MF/013261/ on the standards for information systems in public administration of 8 September 2008; Act No. 618/2003 Coll. on copyrights and copyright related rights (the Copyright Act) as amended EU legislation The European Interoperability Framework, version 1.0, was adopted by decision of the European Parliament No. 2004/387/EC of 21 April 2004 in response to the eeurope 2005 Action Plan with the aim of establishing a framework to support pan-european egovernment services for public administration, businesses and citizens. This legislative framework will be updated in 2009 (version 2.0 is currently in public consultation); Directive 2004/18/EC of the European Parliament and of the Council on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts; Guideline on Public Procurement and Open Source Software published in October 2008 by the Open Source Observatory and Repository (OSOR), an institution established by the European Commission. The document proposes procedures for public procurement of software preventing discrimination of open source software. 3.4 Related strategic documents From the strategic point of view, the development of information systems in public administration has to take into account the goals of information society development enshrined in the following managing documents: The egovernment Strategy of Slovak Republic, approved by government resolution No. 131 of 27 February 2008, containing the strategic egovernment development objectives until 2013; The National Concept of egovernment, approved by government resolution No. 331 of 21 May The concept defines the architecture of an integrated information system, the principles and priorities of egovernment development; Operational Programme Information Society of 17 September The OPIS is a framework document under which support will be provided for egovernment projects and projects of digitalisation and providing access to the content of repository institutions and broadband Internet. The document 6

7 describes horizontal information society project management, ensuring the interoperability of all IS, to be developed from the resources of Structural Funds (SF) in the programming period. 7

8 4 The concept of software products usage New requirements for the development of egovernment services will also require a new approach to the use of software products. A much wider range of available options to procure the necessary software will therefore have to be taken into account than was the case before the approval of this document. Options available today extend from the purchase of commercial (proprietary) software, through the development of custom-built software (by internal staff or external suppliers) and the use of freeware, to the use of Open Source solutions. As implied by the trends recently observed in the European Union, an improved availability of alternative solutions in all areas of software technologies - from operating systems through to application software - has created room for the optimisation of choice for public administration purposes. Factors affecting decisionmaking concerning the choice of alternative software solutions include, inter alia, the fulfilment of requirements of its users, advanced level of a SW product, interoperability, compliance with open standards, etc. The target state of affairs would be characterised by a non-discriminatory approach to individual sources, manufacturers or providers of software, support for innovation, compliance with open standards, as well as the building of a stable and independent IT ecosystem. The first step to identify existing trends and ensuring a systematic approach to this issue is to create a vision, summarise requirements and principles that will form a stepping stone for subsequent assessment of impacts and formulation of recommendations. Fig. 2: Components of the concept 4.1 Vision of the SW products usage in public administration The effective use of software products in public administration primary implies reduction in costs and mitigation of risks associated with the building and operation of information systems. Meeting this long-term objective will make it possible to achieve the following results: obtain a better value-for-money with the funds invested; maximise return and benefits from public investments; provide for a better flexibility in choice, development, modification and integration of information systems; ensure the interoperability of information systems in public administration; encourage the reusability of software within several public administration institutions; 8

9 encourage competition among IT providers (IT ecosystem) delivering products and services for public administration. 4.2 Requirements for SW products usage The correct understanding of requirements for the usage of software in public administration at the very beginning of the entire process is a precondition for taking appropriate decisions on individual alternative solutions in next stages. In addition to local requirements which reflect the needs of public institutions in Slovakia, consideration needs also be given to requirements specified at the EU level Requirements specified at the EU level The EU policy concerning the use of software in public administration is based on a policy framework built on the following requirements: Universal access The EU requires a non-discriminatory (inclusive) access to egovernment services. It means that all citizens should have access to information by means of software tools in a universal manner without any restrictions Autonomy and local control In the case of public administration institutions, the possibility to modify and distribute software without the control of any provider is considered a major benefit. Software whose source code can be re-used implies its broader application at more affordable prices. A side-effect arising from this requirement is equally important, as it encourages local economic development and growth Transparency Public administration is required to act in a transparent manner in its relations with citizens. This requirement also entails a right to verify (by means of designated institutions) the manner in which public information is stored and processed. In some cases, it may be necessary to examine in detail the source of software that is used for special data processing purposes (e.g., software used for the processing of election results) Interoperability The EU requirement to ensure the interoperability of public administration, i.e., the capability of information and communication technologies to support data exchange and sharing of information and knowledge among institutions involved, as well as in their communication with the public. The current EU policy gives preference to software based on open standards, which is fully interoperable with any applications using the same standards. It is observed that the use of proprietary software leads to an increased dependence on certain software providers and impedes market competition. 9

10 Security An important aspect in the use of SW products is compliance with security standards as specified under a common EU security policy described in a document approved by the Council. 1 Such functionalities as identification and authentication should be secure, undeniable, confidential and maximally transparent in order to prevent any misuse of data Cost reduction The goal of public administration is to reduce costs in a medium- and long-term horizon. At the same time, taxpayers expect that they receive the best possible value for money that have paid to the government. On that account, it is important to make sure that decisions that look good from a short-time perspective will not result in higher costs and constrain other alternatives in long term Local (Slovak) requirements Requirements of existing ISPA The existing information systems in public administration (ISPA) currently used by individual public institutions are one of the sources of data and functionality requirements necessary in order to implement changes and legislative amendments to provide effective services to the public and ensuring access to information exchange among individual institutions. With respect to further development of the ISPA application portfolio, the role of public administration data centres in the implementation of changes needs to be underlined. When introducing new and implementing major changes in the existing application portfolio, the process must be coordinated with a data centre based on the assessment of impacts on technical and communication infrastructure, IS interfaces, security of an anticipated solution and an estimate of costs of these impacts, as well as the way in which the appropriateness of a given solution is assessed, and acceptance criteria egovernment requirements under the National Concept of egovernment The ongoing implementation of egovernment services will have a significant impact on a future software portfolio. Along with the development of existing applications, the egovernment implementation process will encourage changes in the existing application portfolio. A cross-cutting analysis of proposed relevant applications will be necessary in order to address all National Concept of egovernment requirements and any specific needs of individual public institutions. Consequently, it will be necessary to review the existing IT system in the light of a newly created process and organisational model and launch a transformation project aimed at implementing system changes, including possible reimplementation of systems, changes in authorisation configurations in individual systems, change tests, creating a changeover plan, data migration, etc. 1 Council Decision 2001/264/EC of 19 March 2001 adopting the Council s security regulations (OJ L101, , p. 1); see also Commission Decision of 29 November 2001 amending its internal Rules of Procedure (OJ L317, , p. 1) 10

11 Requirements for a service market The software support service market represents an important factor for pubic administration in decision-making on alternative solutions. Support services (e.g., modifications, upgrades, training courses, integration services, etc.) must be provided at affordable prices and their providers must guarantee the required service level. Geographical availability of services is also important, given the distribution of individual institutions within Slovakia Access to knowledge requirement An in-depth knowledge of individual SW products is essential to implementation and operation of specific solutions developed for the public administration purposes and to their long-term sustainability. In the case of an extensive transformation of public administration, not only the quality but also quantity of designer, integration and managerial skills is involved. Such knowledge and skills must be available to public administration directly (e.g., through a data centre) or indirectly, through reliable external service providers. 4.3 Principles of effective use of SW products The following principles constitute the bases for the use of SW products intended for egovernment development purposes. Their thorough application to the implementation of SW products in public administration will support cost-effective software utilisation and, at the same time, enhance interoperability both at the national and EU levels. These principles are built on generally recognised egovernment principles, accepted by several EU Member States: Category Procurement of software Principles P1. The total cost of ownership (TOC) of software represents the main criterion in the procurement of software. Individual alternative solutions must be assessed against both direct and indirect costs incurred during the entire life-cycle of the software. P2. Public administration will ensure equal criteria for the assessment of software during a procurement process. P3. Where software is procured under a long-term contract, costs of discontinuing the use of licence (after the expiry of a contract term) must be quantified and considered. P4. Wherever possible, public administration will seek to avoid the so-called lock-up in the form of a long-term contract with a single supplier. Any multi-annual contract must contain a clause on the possibility to terminate the contract without any penalty. P5. Where the provider offers a third-party software, its price must be fully transparent. Where a framework agreement for this particular software exists, applicable to the entire public 11

12 Encouraging open standards Reusability of software administration system, software will be procured under that agreement. P6. In specification of the software to be procured, public administration will make use of open standards and request software solutions that comply with open standards. P7. Public administration will request that open standards be reflected in standards applicable to information systems in public administration. P8. Wherever public administration is already a holder of proprietary rights to a system, design or architecture, it is expected that such a system, design or architecture will be reused, which will also be allowed for in all contractual relationships. P9. Public administration will ensure that any custom-built software developed as part of a contractual performance, and its source code, as well as any software package, is used in compliance with the law, respecting the exclusive intellectual property rights pursuant to separate regulations. P10. Public administration will present itself as a single entity in the process of software procurement in order to ensure that licences are transferable. Multi-licence agreements will be concluded, wherever possible, in order to secure volume discounts. P11. In the case of any custom-built software developed within public administration institutions, its delivery in an EUPL form will be required, wherever possible. Table 1: Principles for effective use of SW products 4.4 Impacts of the implementation of the principles The following sub-chapters assess the impacts of the aforementioned principles on various aspects of software usage in public administration Encouraging open standards Based on best practices, public administration services should provide access on the basis of open standards. In particular, public administration or the public should never be required to buy or use systems provided by particular suppliers in order to access egovernment services as that would imply an inadmissible state support to the building of a monopoly position of selected suppliers. The use of open standards is deemed the best practice as far as the procurement of software for public administration is concerned. Software based on open standards is defined by its economic benefit - it represents a breeding ground for the development of a fully competitive environment. Supporting proprietary standards without strengthening the competitive market environment is harmful and extremely costly over a long term. Even when open-source based software is not always available, public administration should encourage its development and express its preference for such software by giving priority to open-source based software in new procurement procedures whenever possible. 12

13 Thanks to their openness, open standards are accessible to a wide range of suppliers at minimum (or zero) fees. This increases market penetration by new technologies and gives a wider choice of solutions to contracting authorities. The open-standards based software is interoperable with any applications that run on the same standards. Software purchasers must seek an autonomy from suppliers, which implies a possibility to replace software products or their manufacturers in the future without losing data or major functionalities. The open standards may be the basis for IT architecture that remains under control by public administration Software procurement Public procurement must ensure the optimization of investments in the purchase of any software components. Optimization can be achieved by means of Open Source solutions, proprietary solutions or their combination. Decisions must be made on an individual basis. In procuring software, the key criterion is the so-called total cost of ownership (TCO). The individual options should be considered with due account of direct and indirect costs during the entire software life cycle (3-5 years). As a minimum, the costs must include the following: the cost of licence purchase or lease installation costs software maintenance costs (annual charge payable to the software manufacturer) costs of (necessary) software upgrade costs of training for users and administrators costs of discontinuing the use of software (the so-called exit costs) In procuring software, the public administration will require detailed information on the pricing structure of the product so that the above cost items can be clearly identified. The price of licenses must always be indicated separately from the price for the implementation of the IS. Procurement must provide a level playing field for the assessment of each type of software. In the procurement process it is necessary to ensure compliance with standards applicable for public administration information systems. The procedure to ensure efficient public procurement is as follows: 1) defining the requirements for procurement through technology standards rather than identifying the (particular) products individually 2) explicitly excluding the requirement of compatibility with proprietary technologies from the requirements of the contracting authority. 3) requiring strict compliance with interoperability through fully implemented open standards at the interface of systems and giving preference to the implementation of open standards between modules within a single system Software usage training Ensuring training for end users and administrators forms an integral part of the effective use of SW products. For the entire public administration, such training should facilitate: 13

14 awareness of software products necessary skills in different areas of software usage, common understanding of licensing, support and commercial terms and conditions Training must be provided on a regular basis (depending on user groups) and tested or certified by independent authorities. 4.5 Factors affecting the selection of software When selecting a particular software solution, it is necessary to examine the specific conditions and the pros and cons in all areas that are given below for every candidate. In many cases the main differentiator lies in the size and maturity of the community or company which provides support; therefore, the number and quality of the specific positive features of a certain solution may by far outweigh the number of disadvantages. The sources of direct and indirect software costs are as follows: Area Creation, integration and deployment Use, maintenance and extension End of life cycle Factors Licence procurement costs Annual licence costs Support agreement Security Product quality Scalability Reliability Calendar of updates Open standards Integration Flexibility Self-development through API Source code editing Translation/localisation Insurance/indemnity Easy deployment New features Support tools Documentation Management Learning curve Productivity Necessary upgrades, fixing problems with patches Identification and reporting of errors occurring during use Discontinuation Reuse Ability to meet short-term/strategic objectives Archiving /data conversion Table 2: Factors affecting the selection of software 14

15 5 Recommendations for the optimisation of SW product usage Optimizing the use of software products in public administration means implementing the principles set out in Chapter 4.3. This will require a set of measures that can be broken down into two groups. Short-term measures are aimed at laying the necessary groundwork for the subsequent transformation of the existing IT ecosystem in accordance with the principles in Chapter 4.3. The specific suggestions in terms of legislation and organisation, included process- and IT-related suggestions, are provided in the following chapters. For the most part, long-term measures are of technological nature and will be implemented based on the plans for SW usage optimisation. 5.1 Legislation In terms of legislation, we propose the following: 1. Public procurement: to draw up a methodological guideline governing the rules for the procurement of software products in the public administration based on the principles given in Chapter Chyba! Nenašiel sa žiaden zdroj odkazov. (see principles P1, P2, P3, P4, P6, P9, P10, P11), with a specific focus on the procurement of software products in the public administration. 2. Standardisation: to amend Decree No. MF/013261/ on standards so that it: defines the open standards and open source terms complies with the final version of EIF 2.0 ( 3. Contracts: a. For all contracts involving software development or delivery, principles P3, P4, P5, P6, P7, P8, P9, P10 and P11 in Chapter 4.3 must be incorporated in a manner that allows their enforceability. b. For the implementation of projects under the OPIS, the principles under paragraph a) will have to be reflected in the Contract for the provision of a non-repayable grant (hereinafter the NG contract ). On top of that, it is necessary to ensure that the use of custom-built software delivered as part of the contract, its source code, customisation, as well as related documentation complies with the exclusive intellectual property rights pursuant to separate regulations. Licences acquired from funds received under an NG contract must be available for all public administration institutions without any restrictions. c. For all contracts involving software development or delivery, it is advisable that the contract contains the following parts: SLA response times warranty period classification and removal of defects escalation procedures and response times 15

16 change control procedures, acceptance criteria (automatic acceptance), payment milestones, the rights to software and source code, the right to applied patents and intellectual property scope of documentation supplied correlations between projects to prevent the suspension of funding because of delays in other projects breakdown of costs with clearly separated cost of licences and implementation 5.2 Organisation and processes The following recommendations apply in terms of organisation and processes: 1. ensuring the promotion of open standards and technologies in the public administration and their usage; 2. ensuring central management of licences and related contracts for the entire public administration; 3. carrying out regular software audits to obtain information about the currently used software, licences purchased or used and their actual utilisation. The audit results should be used as an input for the optimisation of contractual relationships and operating costs through controlled transformation of the ISPA. 5.3 Information and communication technologies In this area we recommend that the following steps be performed: 1. procuring new solutions for the ISPA and OPIS in accordance with the principles specified in Chapter 4.3; 2. drawing up plans to optimise SW usage after assessing the impact on the ISPA. In particular, the changes in IT infrastructure of the public administration may be triggered by: a) periodic upgrades (functional or technical); b) IS replacement, for instance due to: legislative changes, the need for new functionalities, the necessary reduction of capital expenditure and operating costs; 3. entering into framework agreements with crucial IS and IT suppliers with an option to terminate such agreements on the anniversary of their signature. 16

17 6 Annex 6.1 Basic terms used in the document Term Software Hardware Open standards Software procurement Proprietary (commercial) software OEM software Free software (freeware) Shareware software Definition Software (SW) is the designation for computer software or a set of computer programs that can be run on a computer. A computer program is protected under Section 7(1)(a) of Act No. 618/2003 on copyright and rights related to copyright (Copyright Act) as amended. Hardware (HW) is an umbrella term for computer hardware and computer components. Open standards are specifications for software interfaces, protocols, data, file formats, etc., which are described in detail and published without restrictions that might limit their implementation or facilitate hidden competitive advantage. Software procurement means the purchase of commercial (proprietary) software and development of custom-built software through public procurement, development of software by public administration employees, or the acquisition of freely available and free of charge (freeware, OSS) software for public administration purposes. Proprietary software means software which is the legal property of one party. Terms of use for other parties are defined by contract (by licence agreements). Such terms may include various restrictions on the use and copying, but also privileges for sharing, customising and accessing the source code. OEM (Original Equipment Manufacturer) is a way of licensing proprietary software for HW suppliers. Software is sold in bulk quantities to vendors that sell the software bundled with the defined hardware only. Selling OEM software without hardware is illegal. The manufacturer sells OEM software to the vendor without packaging, manuals and installation instructions. The vendor installs the software on the hardware device which is being sold, while creating an installation CD shipped with the hardware device. This software is distributed free of charge and may be obtained, for example, by downloading from the Internet or from a CD. The software can be used free of charge without any time limit and may be redistributed without restrictions or under certain conditions. The terms of use and distribution of the software are typically defined in the licence terms. As with shareware, it is not allowed to redistribute it for consideration with a view to making profit. The definition of freeware also implies that copyright is the property of the author and that the program code of the product may not be changed or altered for commercial purposes without the consent of the author. Shareware software is available in the same fashion as freeware. The licence terms allow its use under different combinations of restrictions, e.g. limited functionality or for a limited period of time defined in the licence terms (typically 30 days). After this time it is necessary to either purchase or uninstall the software. 17

18 Open Source software Open Source Initiative Open source software is published under licence approved by the Open Source Initiative (OSI). The licence must comply with ten (10) defined criteria, including the right of access to the source code, free distribution and derived works. Open source software does not have a specific copyright owner and may be legally modified by the user. Open Source Initiative (OSI) is a non-profit organization dedicated to supporting and promoting the Open Source community, particularly through the OSI certification programme. Table 3: Basic terms 6.2 Acronyms used EIF EUPL EULA FL/OSS HW ICT IS ISVS IT OEM OPIS OS OSI OSS SLA SOA SW TCO European Interoperabilty Framework European Union Public Licence End User License Agreement Free/Libre Open Source Software Hardware Information and Communication Technologies Information System Information System of the Public Administration Information technologies Original Equipment Manufacturer Operational Programme Information Society Operating System Open Source Initiative Open Source software Service Level Agreement Service Oriented Architecture Software Total Cost of Ownership Table 4: Acronyms used 18