The Malaysian ICP Management Framework
The IMU and ICP obligor need to understand the processes stipulated in the framework to ensure smooth and effective implementation in Malaysia.
ICP implementation is governed based on the Malaysian ICP Management Framework. TDA is responsible to ensure the ICP activities implementation by the IMU and obligors are in line with the processes as stipulated in the Malaysian ICP Policy.
There are 7 processes in the framework which the main content is summarized in the chart on the right.
Phase 1: Pre-implementation
1. Establishment of ICP Strategy
Agency that plans to have acquisitions that trigger ICP Programme shall inform MOF/TDA on the procurement proposal. TDA then will identify the requirements of the ICP based on the value, needs and strategic impact. The requirements analysis will be structured and developed to establish an ICP Strategy Document (ISD). The ISD will be referred as the basis of the ICP implementation.
In normal circumstances, the ICP requirements will be identified during the initiation of the procurement planning and tendering process. The requirements will based on the current needs of the country through market intelligence activities and industry development needs analysis.
2. Establishment of ICP Committee (IC)
IC will be formed upon the initiation of an ICP triggered by MOF/TDA and to be led by the procuring Agency. In general, IC’s role and function is to provide strategic guidance at the project level, approve the proposed ICP projects, monitor and review the ICP projects implementation and evaluate the ICV generation activities for approval by the MIEC.
TDA will be assisting the agency at the early part /initiation of this process.
3. Development of ICP Requirement Document (IRD)
The IRD states the intent of ICP and list of proposed projects to be considered by bidders. The IRD will be part of the tender document and provided to the bidders during the tendering process administered by the procuring Agency.
TDA and IMU (if there is one available) will prepare the IRD which the inputs are obtained from various sources such as industry players, academia and government agencies.
4. Bidders Proposal Submission
The procuring agency shall become a central point for information dissemination to and from the bidders and government. The tender requirement which include the IRD will be distributed to the participating bidders and the procuring agency will coordinate the clarification sessions.
During this process, within the timeframe specified by the procuring agency, the bidders shall submit their response to the requirements stated in the tender document and IRD to the procuring Agency. The bidders may provide alternative proposal in response to ICP Requirements if it is necessary to do so.
5. CP Proposal Evaluation
Upon the closing of the tender submission process, the proposals will be evaluated by an evaluation team. The evaluation process will be coordinated by the procuring agency and will be tabled to the Tender Committee for finalization.
6. ICP Recipient Audit (IRA)
TDA will carry out the IRA onto interested local industry players as an initiation to participate in the ICP Programme via the platform available. The companies are required to submit related documents that contain such information for the IRA to identify suitable recipient.
Priority as an ICP recipient will be given to local company with following criteria:
- Bumiputera status company;
- Registered under Green Route Policy (Treasury Circular PK 1/2013); or has a rating at least SCORE 3 (and above or InnoCert) by SME Corp.; or a member of MIDES and other criteria that are deemed necessary by the Government of Malaysia;
- Proven to possess capability and capacity to execute the identified ICP’s Programme.
The list of potential recipients will be tabled at IC meeting for verification and to be endorsed by MIEC or the MOF Appointed Approving Authority.
Phase 2: Implementation
1. ICP Programme Agreement
Upon the selection of the supplier and ICP providers, the identified ICP activity will be negotiated, finalized and to be transformed to an ICP Agreement.
In the 1st Tier ICP Agreement, it is allowed for the provider to propose 40% of the mandatory ICV value to proceed with the signing. The remaining 60% shall be proposed and agreed by the Government within a period of 12 months (or another period agreed by the Parties). The Main Supply Contract shall be signed together with the ICP Agreement.
The ICP Recipients for the programme has to go through the IRA before their enlistment in this Agreement.
2. ICP Implementation
During this process, the ICP Management Unit (IMU) will monitor the progress of the ICP activities and will report to the relevant committees periodically.
The IC meeting will be held periodically and will be chaired by the Secretary General / Head of Organization of the procuring ministry/agency. Should there any requirements by the stakeholder for a check on the programme/project, a Surveillance Audit will be conducted as and when required.
Phase 3: Post Implementation
1. ICP Activities Assessment
The ICP Activities Assessment process is carried out to measure the projects achievement against the agreed deliverables and milestones in the ICP Agreements. A Post Implementation Audit will be conducted to verify the activities carried out during the ICP Programme implementation period.
2. ICP Obligation Relief
Upon completion and satisfactory ICP implementation, certification process will be initiated and the certificate will be awarded to obligors by the Government of Malaysia.