After almost two years of waiting The Ethiopian Airports Enterprise (EAE) is to pay Ernst & Young (EY) Plc 24 million Br to automate its business management, but the enterprise has given up hiring a consultant for the project, claiming eligible ones could not be found.
The bid was intended to transform the business management system of the EAE into an automated one, using Enterprise Resource Planning (ERP), business management software.
The Enterprise had selected 12 bidders based on a pre-evaluation process out of 21 that had responded to its international bid announced in The Herald newspaper on September 15, 2012.
The evaluation has been made with the assistance of experts from the Ministry of Communication and Information Technology (MoCIT). Only eight companies bought the tender document. Subsequent to technical evaluations, from the eight companies, four companies were able to pass into the next level; Ernst & Young Plc, Tech Mahindra Plc, Cornerstone Consulting System Work Plc and Cybersoft Plc. Except Tech Mahindra, an Indian Company, all are local companies that provide Information technology, Networking Technology solution and Business services.
After the financial opening was made on June 11, 2014, two companies, Ernst & Young and Tech Mahindra offered their respective prices. The higher price was offered by Tech Mahindra, which offered 2.1 million dollars while Ernst offered 1.1 million dollars.
Ernst & Young, a local partner company for Ernst & Young Global, known for assurance, tax, transactions and advisory services, had come up on top on both technical evaluation and financial assessment, scoring 88.5pc while Tech Mahindra followed with 74.8pc .
In addition, the former company provided two options of database software – Oracle database software and as an option, EY has also brought MS-QL database software, which will be used for data storage.
“Having considered the lack of human resource that can work with Oracle database software, E&Y has provided us with its options, while Tech has provided no option to the Oracle data base. This gave E&Y a better chance of winning,” said Tariku Abeza, head of procurement team at EAE.
The projects, which will be expected to be concluded within seven months are proposed to be implemented in the headquarters of the EAE and four additional international airports (Bole, Mekelle, Bahir Dar and Dire Dawa).
The Enterprise, which is not hiring a consultant, will control the execution of the contract using its own IT experts, Tariku told Fortune.
The project will cover computerizing internal business managements in the area of procurement system, inventory warehouse, and payroll, Amaha Bekele, IT risk & Assurance and IT Advisory Service expert of E&Y, told Fortune.
This project will allow the enterprise to be internationally competitive, said Zemedeneh Negatu, Managing Partner of Transaction Advisory Service at EY at a contract signing ceremony on February, 3, 2015 at EAE’s premises near Bole international airport.
The enterprise, in addition to the aforementioned four airports administer 14 additional airports, according to the Growth & Transformation Plan (GTP), the enterprise plans to have 21 airports before the end of 2014/15 fiscal years.