ICAI RFP for Providing Practice Management Software for CA

[adarshmadrecha]

ICAI has yet again produced Request for Proposal (RFP) for providing Practice Management Solution for Chartered Accountants. This is the second time, ICAI is trying to "get a software built" for managing practice.
This post covers our public stand and some comments on the same. Consider this as an open letter to CA Community in general.
Ref: https://resource.cdn.icai.org/70398cmp-pms-160522.pdf or Alternative Download Link

Good Things 🤩

1. Intent

Words from RFP:

ICAI is looking for selection of agency for Development, procurement, and maintenance of web-based software for Practice Management

It's good that ICAI recognises the need for a "Cloud" based Practice Management Solution. We appreciate the efforts ICAI is putting into providing a Practice Management Solution for all practicing Chartered Accountants.

2. Mention of Industry leading cloud solution provider

Words from RFP:

Vendor may be required to provide the dedicated/ cloud server space with the latest hardware and software specifications with appropriate specifications (at minimum of Amazon (AWS) or Azure (Microsoft)) so that proposed application may be hosted.

Mentioning of AWS and Azure is a good step. This would ensure secured infrastructure is adopted.
Not sure why GCP (Google) is omitted.

3. Open-Source is promoted

Words from RFP:

Use of open-source technologies should be made by the vendor as much as possible.

This is a welcome move.

Critics 😖

1. Timeline

Words from RFP:

Practice Management Software shall be designed, developed and implemented by the service provider within 60 days months from the date of issuing of Letter of Intent (LOI).

Practice management solution is very vast. Jamku (online version) started development in 2017. It's still under active development with many new modules releasing every couple of months. The expectation of the RFP is to complete full design and development in 60 days which is impractical.

2. No respect for Privacy or Client Confidentiality 🥶🙈

Words from RFP:

All Intellectual information residing in the system needs to be shared quarterly with ICAI along with transactional data in a readable and usable format

This means all the information entered by CA Firm will have to be shared with ICAI periodically. This is grave violation of client confidentiality.
Users of any Practice Management solution would expect that their data is never seen by any human, not even by Database Administrator. And the RFP expects all the "Intellectual information" should be shared with ICAI.

3. Small players are omitted due to some arbitrary clauses

Words from RFP:

The Bidder should have minimum average annual turnover of Rs. 2 Crore in the last three financial years i.e., 2020-21, 2019-20 and
2018-19.

Earnest Money Deposit is Rs. 5,00,000 - (Five Lakh only) in the form of Demand Draft

The successful Bidder shall furnish to ICAI performance guarantee for an amount equivalent to 10% of the contract value in the form of bank guarantee issued by a scheduled Commercial Bank having validity of 63 months.

These clauses would deter smaller players who genuinely have good products.

4. Enforcing outdated technology

Words from RFP:

Software system should be developed using technology preferably Dot Net with MySQL or SQL Server Data Base or Java and PostgreSQL

Why restrict use of specific technology? There are newer technologies which would provide better user experience and performance than these older/outdated/propriety tech.

5. Requirement for providing Hard Copy (Printed Documents)

Words from RFP:

System Requirement Specification (SRS) Manual (Soft Copy as well as Hard Copy). System Manual- Architecture. User Manual (Soft Copy as well as Hard Copy). Detailed Project Report [System Configuration Documentation, System Administration Manuals] (Soft Copy as well as Hard Copy).

Why is there a need to provide "Hard Copy" of these documents? These documents would run into hundreds of pages (since it will contain screenshots). Hard copy concept is out-dated, un-economical and even harmful to the environment 😉

6. Vague wordings

Words from RFP:

All Government, regulatory and ICAI user / master information should be used by authenticated by APIs already available by the regulatory authorities.

The facility of usage the same remotely without carrying tools in each laptop, as some companies do not allow outside PC and they provide their own system.

The architecture should be n-layered, and each layer should be properly identified

Unsatisfactory service, as decided by the ICAI shall render the contract liable for termination with forfeiture of Security Deposit.

7. SLA bar is set too high

Words from RFP:

The Vendor team need to provide 24/7/365 service resolution of issues. Issue needs to be acknowledged within 2 hours

2 Hours of "acknowledgement" time is too optimistic. It is not practically possible, after office hours for system at this scale.
Expectation of 2 hours during office hours would have been "fair" ask.

8. Ignorant to pricing model prevailing in the market

Words from RFP:

The Bidder must have successfully implemented at least 3 projects of software development having cost not less than INR 10 lacs each in similar products.

Cloud Software are sold on SAAS model. It would be rare to issue sales invoice of more than 10Lacs in "similar products".

Our suggestions 🙏🏻🙌🏻

1. Off the shelf rather than Build

Currently we have more than 10 solutions in Indian market. ICAI can evaluate and decide upon existing solution rather than building it from scratch.

2. Take feedback from members in practice

Take feedback from firms (both large and small) who are already using a practice management solution.
It's important to consider the needs of the firms from Trier I, II, III and IV cities.

3. Specify features in the RFP

Jot down the exact modules required in the software. Since the category "Practice Management" is relatively new (at least in India) the RFP should detail out what is the expectations. Current RFP is too vague on this.
Specifying list of features/modules will also enable members in practice set expectations and more importantly what they should not expect the software to perform.

[adarshmadrecha]

Here is an update as per ICAI Website (as on 20th August 2022)

Comments / Observation:

1. No bids were received in 1st round. The date was extended.
2. The RFP was issued on 16th May. Its been more than 3 months and the vendor is not yet finalised.