Contract Management

Innovation in Public Procurement:

the Costa Rican Experience

About us

Alicia Avendaño

Waldemar Núñez

•eGovernment Director & Complex IT Project Director

•Academic & Public Procurement Expert

Ileana Palaco •International Relations

Costa Rica

Central America 5 Million National GDP: USD $45.13 Billion

Starting Point

Public Procurement ModelPaper-Based

Public Procurement ModelAvailable IT-Platforms

Problems

No standardization of procurement documents and processes. Lack to enable price-referencing, benchmarking mechanisms or supply industry analysis, due to the use of different codifications (goods and services classification codes) and not-integrated supplier registration database Different procurement proceedings in each entity, lack of international standards such as product code , terms of reference forms, business documents and transactions as a result of fanciful interpretations or ignorance of the applicable regulations. Multiplicity of regulations and procedure manual, depending on the entity. Multiple investment and disintegrated use of IT platforms. Duplication of requirements and procedures for supplier registration through different institutions. Lack of process reengineering, standardization and simplification, due to excessive requirements that must be met depending the institution.

“

”(Costa Rica, Public Expenditure Review, Enhancing the Efficiency of Expenditures, IDB/WB, 2009)

–Barahona, CLADS, INCAE Business School, 2008

“20 companies accounted for 40% of all public purchases (…) there were too many processes and too

few bidders”

National eProcurement Platform

Public Procurement ModelNational eProcurement System

www.mer-link.go.cr

Public Procurement Distribution (SIAC, 2013)

State Owned Telco (ICE)Executive BranchHealth & Social Security (CCSS) Education BoardsDecentralized EntitiesOther AgenciesNational BanksMunicipalities UniversitiesJudicial Branch

– Recommendation on Enhancing Integrity in Public Procurement, OECD, 2012

“only half of OECD countries indicated that their procurement reforms addressed the whole

public procurement cycle, from needs assessment throughout tendering until contract management. In particular, few countries have

taken active steps to supervise contractors’ performance and integrity, which is left at the

discretion of the contracting authority”

Procurement Stages & Scope

Planning: Identification of Required Goods&Services Supplier Registration Product Registration Budget Validation

Selection: Seeking the Best Proposal & Selecting It Terms & References Publication + Invitation Assessment Awarding

Execution/Contract Management: Receiving & Verifying the Product, Paying, Warranty Compliance

Delivery & Logistics Product Verification Warranty

Public Procurement Cycle

Goods & Services

Reception

Single Supplier Registration

Contract

Payment

Goods & Services Catalogue

Awarding

Assessment / Evaluation

Bidding

Terms of Reference

Planning

Supplier Performance Evaluation

Contract Conclusion

Contract Expansion / Modification

Best Practice + Collaboration

Single Supplier Registration

ContractGoods & Services

Reception

Payment

Supplier Performance Evaluation

Goods & Services Catalogue

Awarding

Assessment / Evaluation

Bidding

Terms of Reference

Planning

Contract Expansion / Modification

Contract Conclusion

•Claims •Work Flow •Transparency•Digital Certification

•UNSPSC + Specs Tab

•e-Form •Budget Validation

•Data

•e-Bid •e-Bond

•Workflow •Transparency

•e-Contract

•e-Form

Contract Management

Single Supplier Registration

ContractGoods & Services

Reception

Payment

Supplier Performance Evaluation

Goods & Services Catalogue

Awarding

Assessment / Evaluation

Bidding

Terms of Reference

Planning

Contract Expansion / Modification

Contract Conclusion

AdministrativeSanctions / Dispute /

Procedures

•Traceability

•Transparency

•Added Value

•Efficiency

Traceability

Whole Procurement Cycle: 1 single record Legal Support for Dispute Resolution

Efficiency

Process & Cost Benefits Environment Protection Enhanced Productivity Powerful Procurement Policy-Making Tool

Transparency

Open Procurement Visible e-Participation

Added Value

Not an IT Platform -> a Service Business Intelligence

–Partnership for Public Service / IDEO

“INNOVATION.-the process of improving, adapting or

developing a product, system or service to deliver better results

and create value for people”

Muchas Gracias!