Operational example ofe-procurement system (Korea)

Operational example ofe-procurement system (Korea)

ContentsContents

IV. Contributions to Public Procurement

III. Interface services of KONEPS

II. Services of KONEPS

I. Background of KONEPS

Agenda

IV. KONEPS in the world

Objectives of KONEPSObjectives of KONEPS

Issues before KONEPS

Issues before KONEPS

Manual Manual process process

based on based on paperpaper

Corruption-Free Corruption-Free

Via reduced direct Via reduced direct contact between officials contact between officials and suppliersand suppliers

TransparencyTransparency

Via the real time Via the real time information releaseinformation release

Objectives of KONEPSObjectives of KONEPS

Development of KONEPSDevelopment of KONEPS

Electronic Document Exchange System (1997)Online Shopping Mall System (1998)e-Tendering System (2000)e-Guarantee and e-Payment System (2001)

Preparation

Period

(1997-2001)

Preparation

Period

(1997-2001)

Gov’t-wide Gov’t-wide

ExpansionExpansion

(2002-2004)(2002-2004)

Gov’t-wide Gov’t-wide

ExpansionExpansion

(2002-2004)(2002-2004)

As one of 11 e-government projects, KONEPS was developed for the use of the whole public organizations (2002), Disaster Recover System(2003), Data Warehouse, CRM(2004)

KONEPS StructureKONEPS Structure

The on-line procurement system which integrated whole processes are processed automatically. And this system is composed of 4 major modules – e-bidding, e-contracting, e-purchasing and e-payment.

The on-line procurement system which integrated whole processes are processed automatically. And this system is composed of 4 major modules – e-bidding, e-contracting, e-purchasing and e-payment.

KONEPS System ArchitectureKONEPS System Architecture

Certificate

Web Service

ID/PW

Intranet

Data Linkage

Disk

MOSF

MOPAS

KFTC

CA

Surety supplier

Association

KAMCO

MOESTPublic

Organizations.

PPS contractingofficials

Info Analyst

Suppliers

Korea ON-line e-Procurement System

Intranet

KONEPS Portal

• KONEPS info• MY KONEPS• Survey

• KONEPS info• MY KONEPS• Survey

Integrated Notice

• Registration• Bid Notice• Opening Result• Search

• Registration• Bid Notice• Opening Result• Search

Classification

• Search

• Classification

• Identifier

• Contract Info.

• Search

• Classification

• Identifier

• Contract Info.

InfoLinkage

Linkage

Info Linkage

InfoLinkage

e-Procurement Process System

•Bidding/Negotiation•Quotation Comparison•Prequalification•Cost Calculation

•Contract Writing•Contract reviewing•Contract Making

•Delivery management•Contract Modification

•Payment Request•Payment

Support Service System

•User Registration•Unfair Businesses Report•Individual user Management

User Management

•Receipt of Guarantee•Guarantee management

e-Surety

•Payment List•Monetary Transfer•Transfer Result•Bill Management

e-Payment

•Contract Method Decision

•Delivery Request•Procurement request

Document distribution / External Linkage

• e-Document Form Management

• Document circulation/Security Management

• Circulation System Management

• Info Linkage Management

Procurement Request

Awarding Contracting Contract Management

Supplier Performance•Past Performance •Technician Info.•PQ, Eligibility Test Result Search

• Statistics Management

DecisionSupport

Product Management

Product Info Search

Stockpiling ConstructionForeign

Procurement

Domestic Procurement

Office Supplies

Q&A

EDMS Homepage

Government Product Management Portal

e-Shopping MallGeneral Administration

SystemE-Catalog

ClassificationManagement

Best Product

Unit Price Contract

Product Search

MAS

External SystemsExternal User

Internal User

IntegratedNotice

BusinessInfo

BusinessPerformance

Catalog

Price Info

Internet

Closed Network

Government Network

PPS Integrated System

Internal L

inkage

Qualifying Evaluation SystemQualifying Evaluation System

On-line Biding OpeningNotification to candidates

Material Submission

Eligible Test

Missing the Adverse Material

KONEPS

Credit rating agencies

Product Certification Authority

Patent office

Association

BuyerBuyer

SupplierSupplier

Preparing Materials

Shopping Mall SystemShopping Mall System

Past Contract Performance I/f systemPast Contract Performance I/f system

국가재정

지방재정

교육재정

Financial SystemFinancial System

KONEPSKONEPS

Buyersupplier

Contract performance Issue

Contract Performance Issue SystemContract Performance Issue System

Search the contract Information

우정사업본부

Approve

Request

방위산업청

한국철도공사

한국가스공사

한국도로공사

한국철도시설공단

한국국제협력단

한국마사회

인천공항국제공사

한국수자원공사

한국전기연구원

한국수력원자력

한국석유공사

한국전력공사

대한지적공사

대한주택공사

한국지역난방공사

Other e-procurement system (20)Other e-procurement system (20)

Total Contract Information DBTotal Contract Information DB

Payment Data

Contract Data

On-Line Proposal Evaluation SystemOn-Line Proposal Evaluation System

submit proposal directly ?

examiner’s off-line

assessment ?

Overcharge of examiner’s fee ?

KONEPS

examiner

Supplier

Supplier

ProposalUpload

Access Certification

On-Line Evaluation

Video conference

Convenience for Supplier

Convenience for Examiner

Reduce of examiner’s fee

Allow access

Apply DRM

examinerDB

Buyer

Result

Smart phone serviceSmart phone service

Supplier

Mobile Bidding System

Bidding Service

Smart Phone

Result of Bid Opening

Certificates

KONEPS

Gateway server

Access Authentication

XML Conversion

Interface

PKIS/WPKIS/W

Wi-FiWi-Fi

WAS WASDB Server

web webWeb

KONEPS System

3G

Ubiquitous e-government implementation

Increased Convenience

Customer satisfaction increased

Bluetooth

Security token

Electronic Illegal Bids Analysis SystemElectronic Illegal Bids Analysis System

Fair trade

KONEPS

Bidding/opening info.

audit

expert

operator

Data Analysis

Linkage

Illegal e-bidding through rental certificates

Provide objective indicator to catch illegal symptom by public certification

Illegal Electronic Bids Analysis System

Detect symptom

Additional analysis

Conform result

Request investigation

Judicial authorities

Cyber investigate unit

User authority management

create data for illegal state

Illegal state indicator

search with Various method

statistics and enterprise data

User connect record Individual information

IP, certification Mac Address

Access control

Development BackgroundDevelopment Background

Customer-Oriented Web services

Following international

standard

Following international

standard

Different environment

Different environment

Sharing process and informationSharing process and information

improvement of relative business and efficiency

Connect with

organization &

enterprise which have

different environment

Connect with

organization &

enterprise which have

different environment

Sharing information

and process through

web service based

connectivity

Sharing information

and process through

web service based

connectivity

apply ebXML, Web

Service, XML and

international standard

relative to security

apply ebXML, Web

Service, XML and

international standard

relative to security

Standard API Web ServiceStandard API Web Service

Standard APIWeb ServiceStandard APIWeb Service

• Provides linkage client API thru the most efficient method for the linkage of KONEPS to the institute which has different operation environment and platform.• Enables sharing KONEPS process and information via web-based linkage.• Provide the communication and security architecture which complies with the international standard.

• Provides linkage client API thru the most efficient method for the linkage of KONEPS to the institute which has different operation environment and platform.• Enables sharing KONEPS process and information via web-based linkage.• Provide the communication and security architecture which complies with the international standard.

SOAP

XMLKONEPS

WEBRelated association B

Related association A

Related association C

SOAP

XML

SOAP

XML

SOAP

XML

KONEPSKONEPSStandard API Server Standard API Server SystemSystem

Standard Standard API Client API Client SystemSystem

Standard Standard API Client API Client SystemSystem

Standard Standard API Client API Client SystemSystem

Standards of KONEPS API Standards of KONEPS API

XML Schema1.0

Security StandardsSecurity Standards

PKCS

XMLENC

XMLDSIG

Messaging Structure StandardsMessaging Structure Standards

SOAP with Attachment

SOAP 1.1

ebXML TRP 2.O

e-Document Standardse-Document Standards

CC

XPATH 1.0 XSLT 1.0

Information Provision Service StandardsInformation Provision Service Standards

UDDI 3.0.1

WSDL 2.O

Protocol Standard (HTTP)Protocol Standard (HTTP)

XML 1.0

Registry & Repository

Different Standards Used in KONEPS

Interface ServicesInterface Services

Connected with 100 external organizations

Interface Service – Finance SystemInterface Service – Finance System

Transparent Public Procurement AccomplishedTransparent Public Procurement Accomplished

Promotion of Private e-Commerce DevelopmentPromotion of Private e-Commerce Development

Enhancing Procurement CapabilitiesEnhancing Procurement Capabilities

Russia

Armenia

Tunisia

Senegal

UzbekistanIran

Indonesia

Jamaica

Peru

Costa Rica

Vietnam

System implementation and Feasibility analysis underwaySystem implementation and Feasibility analysis underway

Mongolia

KONEPS Exported OverseasKONEPS Exported Overseas

KONEPS Exported OverseasKONEPS Exported Overseas

Vietnam

• e-GP Pilot System

• Operated since Jul. 2010

Costa Rica

• MER-LINK

• Commenced Full Service in Dec. 2010

Mongolia

• Mongolian e-GP System

• Implementation by Aug. 2011

THANK YOU!

Coping with Obstacles in Establishing KONEPSCoping with Obstacles in Establishing KONEPS

Coping with Obstacles in Establishing KONEPSCoping with Obstacles in Establishing KONEPS

Coping with Obstacles in Establishing KONEPSCoping with Obstacles in Establishing KONEPS

• Government leadership and commitment • Integrate and share all information about government

procurement• Make a single e-procurement system for all public

organizations• Standardize procurement process and electronic

document (XML) with digital signature• Take the step-by-step approach from integrated bid

information and e-bidding • Need to make clear rules and regulations according

to the reforming the process

Lessons learned Lessons learned

Contract Performance Issue SystemContract Performance Issue System

국가재정

지방재정

교육재정

Financial SystemFinancial System

KONEPSKONEPS

Buyersupplier

Contract performance Issue

Contract Performance Issue SystemContract Performance Issue System

Search the contract Information

우정사업본부

Approve

Request

방위산업청

한국철도공사

한국가스공사

한국도로공사

한국철도시설공단

한국국제협력단

한국마사회

인천공항국제공사

한국수자원공사

한국전기연구원

한국수력원자력

한국석유공사

한국전력공사

대한지적공사

대한주택공사

한국지역난방공사

Other e-procurement system (20)Other e-procurement system (20)

Total Contract Information DBTotal Contract Information DB

Payment Data

Contract Data

Attempted introduction of banner adsAttempted introduction of banner ads

Revenue by Banner advertising on KONEPS Portal

KONEPSConnect a standard ad screen

supplier Advertising Portal

Considering no website supplier, connect the standard ad screen Advertising costs apply differential depending by Banner ads location

Negative views about Profitable business of Government

Product sales screen on KONEPS

System Management and Inspection System Management and Inspection

AP Management and DevelopmentAP Management and Development

• Entrusted System Development Group (Samsung SDS)

• Handles user request• Database management

• Internal Agent (Service Division) - Examines and approves requests - Verify final results

• Entrusted System Development Group (Samsung SDS)

• Analyze request and

present solution• Request for deployment after development

• Internal Agent (Development Division) - Inspection and approval of modification request - Test deployed result

• Entrusted System Operation Group (Sun Micro Systems)

• System Deployment

• Manage DB history and log

• Internal Agent (System Division)

- Check result after

modification - Inspection of DB history and log

Development Request

Request of examination and approval

Modification Request

Request of examination and approval

Request of examination and approval

Result Report

Result Verification

Request handle procedure of the ITSM

Mutual check between internal/external and functional organization Constant monitoring using real-time log update (Log-Saver, Read-only CD) and inspection program

Mutual check between internal/external and functional organization Constant monitoring using real-time log update (Log-Saver, Read-only CD) and inspection program

Call CenterCall Center

Information

Request

Inquiries

Irregularity

Report

Update

Request

Service DeskService Desk

ITSM SystemITSM System

Call Center SystemCall Center System

Private Area : 660 ㎡ , Agent seats : 54

Superintendent, Meeting Room, staff lounge etc.

Private Area : 660 ㎡ , Agent seats : 54

Superintendent, Meeting Room, staff lounge etc. ProportionProportion

Administrators: Customer Manager(1), Workgroup Leaders(5), Agents : 46 Administrators: Customer Manager(1), Workgroup Leaders(5), Agents : 46HeadcountHeadcount

Direct Operating by PPS Direct Operating by PPSOperationOperation

Response 80% of calls under 20 sec of Response 80% of calls under 20 sec of

waitwait

Response 80% of calls under 20 sec of Response 80% of calls under 20 sec of

waitwait

CustomerResponse

ServiceLevel

Call SolvingAt First

CustomerSatisfaction

Percentage of Customer Response Percentage of Customer Response

96.2% ↑96.2% ↑

Percentage of Customer Response Percentage of Customer Response

96.2% ↑96.2% ↑

Average 70% ↑ Average 70% ↑ Average 70% ↑ Average 70% ↑

2 times per Year ↑2 times per Year ↑2 times per Year ↑2 times per Year ↑

Call Center SystemCall Center System

Key Performance IndicatorKey Performance Indicator

IP-PBX콜센터 교환기

Call Center Switchboard

CTI콜센터 미들웨어

Call Center Middleware

IVR자동응답

Auto-answer Service

C-Rec Voice녹취시스템

Real time recording System

AnySupport원격지원시스템

Remote Assistance System

Consultation APP.상담운영관리

Agent Convenient Featuresreceipt and question history management

Major EquipmentMajor Equipment

Call Center SystemCall Center System

Contributions to Development of SMEsContributions to Development of SMEs

2010

191,258

193,663

4,384

4,467

98.8%

311,896 97.2321,059

31 97.232

Let’s Think!Let’s Think!

▶ Convenient ways to use KONEPS ?

▶ How to operate KONEPS ?

▶ Problems during KONEPS operation ?

KONEPS ManagementKONEPS Management

Efficient Operation ?

Stable Operation ?

High level Operation ?

Outsourcing by Professional IT supplier

3-Years Long-term contract

SLA

ITSM

Outsourcing Outsourcing

Function Implement and Additional Development

• Impact Analysis by Legal, policies change

• Application Function Improvements, Test

New Service

Application Operation

• Error Correction, Simple Function Change etc. Maintenance activities• Application Optimization activities• Application Environmental Modification

Education Support and Project Management

Application version Control etc.

• Business consultation and Administrative processing support• performance management• Product Management• Call Center team support

•Quality Management / SLA Management •Contract Management•Education Support for KONEPS•Workforce Management / Partner Management

Service Optimization

Support Services

Version Control

Core business focus

Cost savings

Efficient operation

quality service

Long-term Contract Long-term Contract

Stable Operation

Phased improvement of service quality

※ Generalized trend of long-term contract in the private (3~5 years)

※ Since 2005, long-term contract ( KONEPS)

•Short-term Contract (1 year)

- Frequent replacement of the operating personnel - Can not utilize the accumulated know-how

• Long-term Contract (3 Year)

- Stability of the operating personnel

- Annual Service Improvement

SLA (Service Level Agreement)SLA (Service Level Agreement)

High Level Operation

Minimize disability and Identify obstacles in advance

SLA (Service Level Agreement)

SLM(Service Level Management)

Planning

Level Mgt Plan

Initial Run

Review/ImprovementSLA review

SLM Process review

Sustainable management

ReviewReportMonitoring

SLA create

Catalogue SPI, SLA Draft

Negotiation

Level review Conclusion

SPI (example)

Key Application Utilization Rate

SR Error Rate

The average processing time

Compliance of the processing time

Key personnel issuance

SR The number of aborted

ITSM SystemITSM System

Standardized Multilevel Approval Procedure

1) Adoption of the ITIL 2.0 procedure (’05) ITIL (Information Technology Infrastructure Library)

Collection of international standards used by the leading IT service companies

Successful implementation of the ITIL

First public institution to receive ISO20000, an international certificate for ITIL implementation (Oct. 2005)

2) Establishment of Automatic ITSM (’06)

Development of Automatic IT Service Management System in accordance

with ITIL standards

Increased speed and stability of system updates

ProblemsProblems

Decrypting error occurs when bid opened, Attachments are not opened

▶ specify processing method When user's PC error occurred Server down due to user congestion ▶ Establish disorder treatment guidelines ▶ Auto-delay announcement processed

Bid Submission time Error ▶ Apply Certified Accredited hours

Collusion with a certificate Rentals ▶ Personal certificate identification, Report & Awards , Fingerprint Recognition

After the initial development, occurs doubts about security of bid and Transparency of System

▶ Held the Presentation to suppliers and media etc.

Certificate issuance costsCertificate issuance costs

KONEPS

User

1.Request for User registration

PPS Approver

Certification Authority

5. Approval application information(Face to face)

6.Certificates issued

4.Payment

2. Approval

3.Request for Certificate issuance

Certificate-issuing authority can impose the costs

ex) 110 dollars/1

Contract Agency FeeContract Agency Fee

KONEPS

Organization

1. Contract Request

PPS5. Product Delivery

7. Payment

4.Contract

2. Receipt of the request

3. Notice

PPS receives a fee for the contract

ex) Fee rate is determined by the amount of the contract (0.5%~1.0%)

6. Inspection

8. Fee Payment

Supplier

KONEPS Service feesKONEPS Service fees

KONEPS

1. Tender Notice

4. Fee Payment

2. Bidding

3. Bid Opening

PPS receives a fee for KONEPS Service

ex) Fee rate is determined by the amount of the tender 5 ~ 20 dollars

OrganizationSupplier

PPSFee Payment ??

ex) Consider changing payer by the benefit principle

Revenue of Bidding linkRevenue of Bidding link

KONEPS

Bid Information supplier

2. Apply Web Security Solutions

3.Impossible to extract data

4. Provide Information By linkage

ex) real time : 7000 dollars per year batch service : 3000 dollars

1.System Failure thru Crawling

KONEPS

Information

Bid Information supplier

5. Payment

Bidding Information for Sale

PPS Education CenterPPS Education Center

Organization

Education Center

1. Training Courses Information

2. Training Request

3. Training costs Paid

4. Education Completed

Revenue through user education

Different Training costs depending on the courseex) 100 dollar for 5days