e-GP Business ModelBy

Md. Mosharraf HussainSystem Analyst, CPTU,IMED

Ministry of PlanningBangladesh

4th

South Asia Regional Public Procurement

ConferenceKandy-2017

2

Electronic Government Procurement (e-GP)in countries ---

e-GP Business Model

Value Proposition

Revenue Model

Cost Centers

Case Study

Agenda

Target market and how can it be reached? Government Agencies & Tenderers; Through Better Service Delivery.

What is the scope of the entire offerings? Simple, secure, Reliable & speedy.

What value promise leads clients to choose e-GP? Paperless, Easy, Error free, Hassle free, Open competition.

What factors ensure profitability?

Core strategic questions

Offer a unique and relevant value promise

Aligned with market needs

Capable of generating attractive profits

Establish new growth platforms

e-GP Business Model

Functions

ExpensesRevenue

e-GP: Functions

Procurement Planning

Invitation of Bid

Bid Submission

Bid Evaluation

Contract Signing

Contract Management

e-MarketplaceIntegration with other

system( Tax, Vat, etc.)

Online Payments

Demand Forecasting

Analytics for Fraud

detection

e-Contracting

End to End Online

Process (Order to Pay)

Revenue Model

RegistrationTraining

Document price

Fees from winning bidder

Value Added Services

Publication

Support services

Registration fees for tenderers.

Renewal fees will be charged annually

to the tenderers.

Registration and renewal fees

A minimal fee on bidding document

can be charged to the bidder to

access the document.

Selling of Tender document

Capacity building of Procuring Entity

Capacity building of Tenderers

Training on Public Procurement Acts,

Rules, Guidelines etc.

Training and capacity building

SMS / Email alert on different occasion

as per requirement of the tenderer.

Helpdesk services.

Online payment.

Value added services

Charge a fee to Procuring entities for

tender publication in the portal.

Tender Publication fee

Fees from winning tenderer

Charge a fee from the winning bidder based on the contract value.

Helpdesk

Standard Tender Document Preparation

Which will ensure the clients satisfaction to boost

up the revenue stream.

Support services

Infrastructure

Skilled manpower

Logistics

Services

Cost Centers

Electronic Government Procurement (e-GP) System of Bangladesh .

www.eprocure.gov.bdIn operation since 2 June 2011

Case Study

e-GP Status (15 Feb 2017)

Procuring Entity

Tenderer

Total user

Total Tender Value

Total Tender

Total Bank

Competition

Earning from e-GP

3732

28,663

50,025

9,145 M$

82,081

44

8.5

16.28 M$

Procuring Agencies 1001

e-Tendering (e-Advertisement, e-Lodgment, e-

Evaluation, e-Contract award etc.)

e-Contract Management System (CMS)e-Performance Monitoring Information System (e-PMIS)

e-GP Offerings

e-GP Earnings

Registration Fees

Renewal Fees

Tender document fees

Total Revenue = 2.61 M USD

Year wise earnings from Registration and Renewal fees

US

D

813 19,088 55,825

547,100 590,725

697,713 697,564

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2010 -

2011

2011 -

2012

2012 -

2013

2013 -

2014

2014 -

2015

2015 -

2016

Jul -

Dec 16

Total Revenue = 13.29 M USD

Year wise earnings from Document fees

US

D

1,513 30,691

1,091,638

3,416,625

4,523,026 4,230,391

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

2011 -

2012

2012 -

2013

2013 -

2014

2014 -

2015

2015 -

2016

Jul-Dec

16

e-GP: Expenses

E-GP Platform cost

Data centre IT equipment cost

DC Land & Building cost

Non IT cost

4.37 M USD

e-GP: Expenses

AMC of e-GP Infrastructure

Personnel cost

Management cost

Helpdesk cost

Internet cost

6.25 M USD

e-GP: Self SustainableU

SD

10,974,755

15,902,710

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Income (Cumulative) Expenses (Cumulative)

Conclusion

e-GP System can be:

Self sustainable

Profitable

Free service by Government

Transparency

Competitiveness

100 % of contract award published

100 % of tender notice published

Average Number of responsive tender is 10.37

Average Number of tender submission is 11.03

Efficiency

99.5 % contract award decision made within initial

tender validity

e-GP: Simple Speedy Secure