- | Poor project preparation: Technical requirements listed in the bidding document were not<sup>based on a</sup> description of the ehanges in the Revenue Department's business processes<sup>that were to be supported</sup> by computerization.

- The project objectives were narrowly focused on the computer system and not specific<sup>enough. For</sup> example it only listed a few services that were to be provided by the new system.

- The project lacked performance benchmarks.

# Weak project implementation and supervision:

- There was no detailed project implementation plan. The action plan listed the main project milestones, but gave no indication of how they were to be achieved. The action plan did<sup>not show the</sup> relationships and priorities between the various actions and tasks and who was responsible<sup>for them.</sup> Dates for the delivery of various outputs were repeatedly changed during supervision of the project.

- I The lack of detailed implementation plan made supervision difficult. Until January 1996,<sup>the project</sup> was rated satisfactory even though it had run into problems at an early stage of implementation.

Inadequate technical specifications

- The system specifications included in the Invitation For Bids (IFB) were for the hardware, and<sup>not</sup> specific enough for the applications software component of the project.

- In 1993 the software contractor abandoned work without having delivered the software<sup>applications</sup> in accordance with the contat. Furthermore, the computer hardware that had already been delivered was of insufficient capacity and required replacing.

lpoor prcureme rocess: i * TMere was no real bidding process for the turn-key contract. The Revenue Department wanted the software quickly, so instead of a two stage bidding process<sup>2</sup> software was provided through a twoenvelope process.

# Weaknesses in project management

* Despite an in-depth review by the Bank in January 1996 not much progress had been made by December 1996, the closing date of the project, and the Bank decided not to grant an extension<sup>of the</sup> loan.

I Thailand, Tax Computerization Projec January, 199 1, TH-PE-4774.

2Under a two stage biding process, unpriced technical proposals on the basis of a conceptual design or performance specifications are first invited, subject to technical as well as commercial clarifications and amendments.<sup>Theses are</sup> followed by amended bidding documents and the submission of final technical proposals<sup>and priced bids in the</sup> second stage. As opposed to two-stage bidding, in the two-envelope system, bidders are required to submit separate qualification, technical and price proposals at the same time, but which are opened sequentially in separate<sup>sessions</sup> and evaluated. The Bank no longer accepts the two envelope system.

# **Computerization: Adequacy and Sequencing**

_The computerization question:_ Two important questions with regard to IT are<sup>its role in good tax</sup> administration and the process of IT induction. Its role and the appropriate process of<sup>IT</sup> induction in the context of countries at different levels of development and with different characteristics is under-researched (for example in an Argentina versus a Vanuatu versus a 25