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E-Procurement for Improving Governance E-Procurement for Improving Governance

Session 5: Session 5: Standards in Standards in

eProcurementeProcurement

A World Bank live e-learning A World Bank live e-learning event addressing the design and event addressing the design and

implementation of e-implementation of e-procurement infrastructure procurement infrastructure

E-Procurement for Improving GovernanceE-Procurement for Improving Governance

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In this session, you will review:

• Context for eProcurement Business Model Standards Decisions

• The general case for standards

• The specific case for standards within eProcurement

• Standards to consider for different phases of eProcurement

• Reality check on standards adoption

• Recommendations to consider.

Topics

Standards in eProcurement

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Publication / Search / Disclosure Facilities

Buyer/Seller Support Facilities

Processing Center

E-Tendering

E-Reverse Auction

E-Catalog Purchasing

System integration/ Collaboration

Transaction FacilitiesPublic Sector

Systems

Asset management

Contract management

Indent management

Financial management

Budgeting

Private Sector Systems

Bid/Proposal Preparation

Catalog management

Order management

Invoicing

Functional Scope of an eProcurement System




WHY STANDARDS?

Prevent failures

Increase efficiency of complex operations

Introduce order and predictability in

electronic exchanges

Reduce risk

Increase trust

Why do we Need Standards?




― Enhance B2G/G2G connectivity and interoperability

― Generate trust in electronic experience― Enhance competition and inclusion― Enhance efficiency and flexibility of public

procurement function― Enhance cooperation and transparency― Facilitate evolution and innovation ― Increase return, reliability of investments― Avoid vendor lock-in

How standards can help eProcurement

How Standards can help eProcurement Systems


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Development Methodology

(UML, RUP)

Development Methodology

(UML, RUP)

Quality(CMM)Quality(CMM)

Architecture(SOA,WOA )

Architecture(SOA,WOA )

Workflow (BPMN, UMM,

BPSS)

Workflow (BPMN, UMM,

BPSS)

Networking (TCP/IP)

Networking (TCP/IP)

Standards for eProcurement System Specification/Construction


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eProcurement System Disclosure

Laws/Regulations

Business opportunities

Bidding documents

Contract awards

Key Standards for Disclosure Facilities

Model legislation(UNCITRAL, EC

Directives 2004/17/EC and

2004/18/EC )

Model legislation(UNCITRAL, EC

Directives 2004/17/EC and

2004/18/EC )

Identification(UN-SPSC, GPC, CPV, eCl@ss )


Formatting (ODF, PDF,

OOXML)

Formatting (ODF, PDF,

OOXML)


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eProcurement System: User Support Facilities

Supplier registration

& alerts

Supplier registration

& alerts

Electronic paymentsElectronic payments

Reference prices

Reference prices

Research support

Research support

Supplier Registry Supplier Registry

Communication (SMTP/Imap)

Communication (SMTP/Imap)

ePayments (SET, IFX, ISO 2022..)

ePayments (SET, IFX, ISO 2022..)



Registration (DUNS)

Registration (DUNS)

Standards for eProcurement System Support Facilities


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Reliability (HTTP-R)

Reliability (HTTP-R)

Directory Service(LDAP, DSML)

Directory Service(LDAP, DSML)

Computer securityISO/IEC 15408

Computer securityISO/IEC 15408

Site security (RFC 2196)

Site security (RFC 2196)IT Service

Management (ISO/IEC 20000)

IT Service Management

(ISO/IEC 20000) Network security (ISO/IEC 18028-1 )Network security (ISO/IEC 18028-1 )

Standards for eProcurement System Data Centers

eProcurement Data Processing

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Reliability (WSR)

Reliability (WSR)

Information Security Controls

(ISO 17999)

Information Security Controls

(ISO 17999)

Information security management

(ISO/IEC 27001)

Information security management

(ISO/IEC 27001)

Information Security Testing

(OSSTMM)

Information Security Testing

(OSSTMM)

E-Reverse Auctions

E-Catalog Purchasing

System integration/ Collaboration Facilities

E-Tendering

Standards for eProcurement Transaction Systems


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Communication (Imap)

Communication (Imap)

E-Reverse Auction

Facilities

Key Standards for e-Reverse Auctions


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Authentication (X509, XML DSig, XKMS)

Authentication (X509, XML DSig, XKMS)

Encryption (SSL, XML Encryp)

Encryption (SSL, XML Encryp)

Traceability(ISO 13335 )Traceability(ISO 13335 )

Standards for eProcurement Phase IIa – eTendering Systems


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Messaging (SOAP)

Reliability (HTTP-R, WS-R)

Interoperability (WSDL, BPEL)

Documentation (UBL, C-CATALOG)

Secure Access(SAML, XACML)

Publication (UDDI)

Standards for eProcurement Phase IIb – eCatalog Purchasing Systems


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Interpretation (DSDL, Relax NG)Interpretation

(DSDL, Relax NG)Interoperability/Collaboration

(ebXML, WS-I Profiles, WSCI, BPEL)

Interoperability/Collaboration (ebXML, WS-I Profiles, WSCI,

BPEL)

Provisioning (SPML)

Provisioning (SPML)

Web Security(WS Security, SAML, XACML)

Web Security(WS Security, SAML, XACML)

Registration of Services

(UDDI)

Registration of Services

(UDDI)

Web Services (WS*)

Web Services (WS*)

Private Sector

Systems

Private Sector

Systems

Public Sector

Systems

Public Sector

Systems

Standards for System Integration/Collaboration Facilities (Phases III and IV)




• Mandated already by many governments (India, UK, Canada, EU, Phil, Brazil…) and recommended by most.

• Embraced in varying degrees by large vendors (IBM, HP, Oracle…)

Adoption of Open Standards is:

Open Standards

However, from 2006 MDB survey of eProcurement systems in 14 leading countries*…

•No one allows ODF documents.

•Only 6 use UNSPSC.

•Only 4 use XML, and only one uses ebXML for interoperable electronic business

•Only 4 use SOAP, 3 use UDDI, only 1 uses WSDL and none use BPEL, WS-Security, WSCI

•However, most use digital certificates and asymmetrical encription for authentication.

*Argentina, Australia (State of New South Wales), Brazil, Chile, Finland, Hong Kong, India (Indian Railways), Italy, Mexico, Norway, Romania, Singapore, South Korea, The Philippines




― Adopt an open standards policy for all eProcurement- related work. Refer to standards by name (“or substantially equivalent”) in SRSs and SLAs.

― Investigate and if possible adopt ebXML family of standards (ISO 15000) for all eProcurement-related work.

― Adopt SOA and Web services as the architectural standards for eProcurement.

― Adopt a business process modeling standard (BPMN or UMM) and use to document functional requirements of eProcurement systems, even if procuring a COTS solution. It will serve well in acceptance testing and in avoiding vendor lock-in.

Recommendations to Consider

Summary / Recommendations




— Reserve Digital signatures and PKI for strong authentication and signing of legally-enforceable documents. For other purposes, experiment first with simpler methods (encryption, two-factor authentication).

— Assign a person to watch and recommend standards. This may be done centrally for whole government.

— Consider OSS products as they often implement and promote open standards.

— Strongly consider adopting international classification/description standards (UN SPSC, CPV, GTIN or similar) instead of a home-grown alternative.

Recommendations to Consider

Summary / Recommendations


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