GeBIZ - New Procurement Method

CHIA PUAY LONGCHIA PUAY LONGPROGRAM MANAGER, GEBIZE-COMMERCE DIVISIONDEFENCE SCIENCE & TECHNOLOGY AGENCY

29 29 Jul 2003Jul 2003

Agenda

• What is GeBIZ ?• Functionalities and Features• e-Procurement Methods • Benefits of GeBIZ• GeBIZ Implementation Approach• Challenges Faced• Future of GeBIZ

GeBIZ - Government Electronic Business

• ““One stop, non-stop” centre for Government One stop, non-stop” centre for Government businessbusiness- For public service officers to interact with their

trading partners for procurement activities– One-stop centre for suppliers to trade with the

entire Government

• GeBIZ is a Singapore Government wide e-GeBIZ is a Singapore Government wide e-commerce initiativecommerce initiative

The Partnership• Joint collaboration between

– Defence Science & Technology Agency (DSTA)

– Ministry of Finance (MOF)

– Infocomm Development Authority of Singapore (IDA)

What is GeBIZ?

• Adopts some features of private sector portals e.g. convenient on-line shopping experience but adheres to public sector procurement disciplines (GPA compliant) which ensures:– Transparency

– Fair and open competition

– Value for money

Application & Users

Ministries & Statutory Boards

Ministries & Statutory Boards

Trading Partners

Trading Partners

E-Supplier RegistrationE-Supplier Registration

GeBIZGeBIZProfessionalProfessional

GeBIZGeBIZEnterprise Enterprise

GeBIZ GeBIZ PartnerPartnerFinancial SystemsFinancial Systems

(Oracle, SAP,(Oracle, SAP,PeopleSoft)PeopleSoft)

GeBIZ Enterprise• Intranet application for government agencies

• Decentralised procurement activities

Invitation to

Tender(ITT)

Check Payment

Status InvoiceVerification

FinancialSystemsInterface

Framework(RFQ)

CatalogueManagement

Invitation to

Quote(ITQ)

TenderPublication

PeriodContract

(includes e-Catalogues)

GeBIZAdmin

Goods Receipt

EstateManagement

System

ConstructionProcurement

Portal

CreditNote

DirectPurchase

• Internet application for trading partners, both local and overseas

• Single stop for business opportunitiesTradingPartner

InformationUpdate

On-lineSupplier

Registration

ViewTender

Notices &ITQ

SubmitE-Invoice

ViewPayment

Status

ViewPeriod

ContractDetails

SubmitQuotations

& Response

to ITT

ReceivePurchase

Order

GeBIZ Trading Partners

Access to Business Opportunities

• Tender Notices, Schedules, Awards

• Qualification Notices

• Auction Notices

• Invitation-To-Quote (ITQ)

• One-stop registration for GeBIZ trading partners & EPPU (Expenditure Procurement & Policies Unit)

• Integrated with government supplier debarment information

• Source database for suppliers trading with Govt

Supply Head

ApplicationOn-line Payment

Reporting Supplier

Debarment

Workflowfor Supplier

Head Applications/

Upgrade/Renewal

View Payment

Status

Electronic Supplier Registration

Upgrade/ Renew

ExistingSupply Heads

GeBIZ Functionality Features

• System is centrally managed but procurement activities are decentralized

• Public Sector users can access GeBIZ from the intranet, and approval of requisitions can be done via email or web pages

• Support end-to-end transactions with trading partners for various modes of purchasing for ANY goods and services

GeBIZ Functionality Features

• Supports end-to-end transaction processing with standard SAP, Oracle and Peoplesoft Financial systems

• Support personalization & configuration by Agencies

• Component based application architecture which is generic and re-usable across applications

GeBIZ- Procurement to Payment

GeBIZ Enterprise

GeBIZ Partner

FundCommitment

Invoice

Payment

Fill up shopping cart

Submit

PO

to su

pplier

Approval

Process

Goo

ds re

ceiv

ing

IssueInvitation to Quote

GeneratePurchase

Request Submit PO to supplier

View Tender Notic

es

Send invoice

GeneratePurchaseOrder

SeekApproval

AGENCY

Submit ITQ

SUPPLIER

Submit quotation

DeliveryPrepareinvoice

for billing

ProcessPurchase

Order

Invoice

PrepareQuotation

Catalogues

Approval

Purchase Order

Receiving

PurchaseRequest

ITQ

Requisition

Update catalogue & price

Tender NoticesPublish Tender Notices

Tender

Purchase Order

FinancialSystems

FinancialSystems

Financial Systems Interface

GeBIZFinancial Systems(SAP, Oracle, Peoplesoft)

Fund Commitment Status

Staging Area

Purchase Order

Purchase Requisition

Goods Receipt

Goods Return

InvoicePayment Status

Closed PO

Pre-encumbrance Status

Item Category

Material Master

Chart of AccountSupplier Master Financial

Systems

Staging AreaInterfaceGateway

E-Procurement Methods in GeBIZ

• Catalogue Buy- Established Period Contract

• Electronic Catalog• Printed Catalog

• Framework Agreement Buy – Request For Quotation (RFQ)

• Self-Service Buy – Invitation To Quote (ITQ)

• Assisted Buy– Complex ITQ or Invitation To Tender (ITT)

Differences between ITQ and RFQ

Invitation To Quote

1. No Pre-defined agreement established

2. Open / Closed

3. Quotation Approval Authority Limit is S$70K

Request For Quotation

1. Framework Agreement established between buyer and suppliers

2. Closed among awarded suppliers

3. Quotation Approval Authority Limit is S$1M

Typical Buying Scenario

StartStart

Itemsfound in

e-Catalog?

Itemsfound in

e-Catalog?

Buy fromE-catalog

Buy fromE-catalog

Itemsfound inprinted

catalog?

Itemsfound inprinted

catalog?

Buy fromprintedcatalog

Buy fromprintedcatalog

N

Y

Itemsfound in

frameworkagreement?

Itemsfound in

frameworkagreement?

Raise RFQto buy fromframework

Raise RFQto buy fromframework

NN

Y

Call ITQ(self-service

buy)

Call ITQ(self-service

buy)

Issue POIssue PO

Y

Simple Purchase?Simple

Purchase?

Y

AssistedBuy

AssistedBuy

N

Typical Buying Scenario

GeBIZPO

Goods Receipt

E-InvoiceVerification

View Payment

Status

Close PO

Financial System

New Procurement Method: Online Reverse Auction

Since Jan 2001, Defence Science and Technology Agency has conducted 27 online reverse auctions and achieved a total of S$10m (or 11%) savings from S$89m worth of purchases

As part of our e-Government programme, DSTA is now assisting other ministries with reverse auctions so that the benefits of procurement through reverse action can be enjoyed by all public sector agencies. The intention is to aggregate demand from different ministries and agencies so as to purchase in bulk and enjoy even lower prices for Government purchases.

Benefits of GeBIZ - Buyers

• Increase transparency in Government Procurement– Encourage competitive bidding

– Promote Fair and Open Competition

– Best value for money • Global reach to suppliers

• Better overview of procurement activities and purchasing patterns within the agency

• Aggregation of requirements to establish cross-agency period contracts or framework agreements

Benefits of GeBIZ -Buyers• Better work efficiency and reduce

procurement lead-time

• Streamlined workflow processes eliminate duplicate data entry

• Increase data accuracy & reliability

• Online reference to past procurement records

Benefits of GeBIZ - Suppliers• Open access to business opportunities

– transparency of opportunities and information on government procurement

• Convenience – One-Stop Business Centre to trade with entire Government

sector electronically

– Online transactions & enquiry

• Increased confidentiality

– Responses are encrypted

• Low start-up cost

Phased Implementation ApproachJun 2000 – Catalog buy, Tender Publication, reach to all agencies, Set up of GeBIZ Service Centre (GSC)

Apr 2002 – RFQSep 2002 – ESR

GeBIZ ITT, credit note, FI with PeopleSoft, deployment of FI, Direct PO

GeBIZ Phase I

GeBIZ Phase IIA

GeBIZ Phase IIB

Nov 2001 – ITQ, TP Registration, Financial Interfaces to ORACLE & SAP

GeBIZ Phase III

GeBIZ Phase IV

Current – NFS FI, E-link with MINDEF, Billing, Mgmt Reporting, Demand Aggregation (Planned)

Mandatory Use of GeBIZ

• FC 15/2000 – Issuance of electronic PO via GeBIZ fro Service-

Wide period Contract from 1 December 2000

• FC 4/2002– Online tender publication via GeBIZ starting from 1

Apr 2002

• FC 5/2002– Use of Framework Agreement Module from Aug

2002– Use all GeBIZ modules (except GeBIZ Professional

by July 2003

Challenges Faced

• Project Management Challenges– System is dynamic, new requirements surfaced

almost every week • Phased Implementation Approach• “Think big, start small, scale fast”

Manage the complexity

• Technical Challenges– Scalability and robustness – Need to integrate many components Strong system and process integration capability is key

Challenges Faced

• Design Challenge– One system for ALL agencies and ALL type of

purchases – Diversity of requirement and practices across

different agencies • effort on process rationalization, streamlining &

standardization• flexibility in configuration to cater to specific

scenarios – Standardization of Financial System Interface for

different financial systems

Challenges Faced

• Getting the Users On-Board– Buyer and Supplier Community Ramp-Up

• Change management across all agencies

– Convince buyers & suppliers of benefits– Revise internal procedures– Manage the transition

– Confidence-building• Involve end-users in requirement-gathering

• Solicit feedback regularly

• Provide adequate training

• Provide good post-training support

– Operation Support for large buyer and supplier base• Proactive helpdesk support

Challenges Faced

• Other Challenges– Security, Audit, Legal Issues

• Terms & Conditions to govern the conduct of e-procurement electronically

• Maintain traceability and accountability

Future of GeBIZ• Portal to enable all e-commerce transactions with

Govt of Singapore (GOS) to be performed electronically

• Integral part of e-government services

• Aggregation of demand across GOS and achieve best value for money for all agencies including publicly funded agencies

• GeBIZ as a means to explore new business model and processes enabled by technology

• Primary means to promote e-commerce adoption amongst trading community in Singapore

Thank Thank YouYou

ee

Welcome to visit us at : www.gebiz.gov.sg