Paul R SchapperMay 2009
INTRODUCTIONINTRODUCTION
E-GP as a key component E-GP as a key component of Procurement Reformof Procurement Reform
INTRODUCTIONINTRODUCTION
E-GP as a key component E-GP as a key component of Procurement Reformof Procurement Reform
Regulatory Control ≠ Good GovernanceRegulatory Control ≠ Good GovernanceRegulatory Control ≠ Good GovernanceRegulatory Control ≠ Good Governance
- RESULT -Complex
Regulations
- RESULT -Complex
Regulations
- ISSUE -Vulnerability to Corruption
- ISSUE -Vulnerability to Corruption
- RESPONSE -Minimise Discretion
- RESPONSE -Minimise Discretion
OUTCOME -Reduced
transparency
OUTCOME -Reduced
transparency
E-GPReform
E-GPReform
Standardised Procedures
& Documents
Standardised Procedures
& Documents
Automation of basic processes
Automation of basic processes
Activity Tracking and
Monitoring
Activity Tracking and
Monitoring
Information Processing &
Reporting
Information Processing &
Reporting
Technology gives Transparency + ControlTechnology gives Transparency + ControlTechnology gives Transparency + ControlTechnology gives Transparency + Control
Control
Control +Transparency
Transparency
Control +Transparency
Without technology transparency in procurement is problematic
ECONOMIC DEVELOPMENTBusiness development
CompetitivenessTechnological Enablement
Market Access
ECONOMIC DEVELOPMENTBusiness development
CompetitivenessTechnological Enablement
Market Access
Countries Begin with Different GoalsCountries Begin with Different GoalsCountries Begin with Different GoalsCountries Begin with Different Goals
GOVERNANCETransparencyAccountability
IntegrityPublic Confidence
GOVERNANCETransparencyAccountability
IntegrityPublic Confidence
EFFECTIVENESSEfficiency
Informed ManagementValue-for-money
Quality Outcomes
EFFECTIVENESSEfficiency
Informed ManagementValue-for-money
Quality Outcomes
E-GPE-GP
DEFINITIONDEFINITION
Common understanding of Common understanding of e-GP in general and in e-GP in general and in
particularparticular
DEFINITIONDEFINITION
Common understanding of Common understanding of e-GP in general and in e-GP in general and in
particularparticular
e-GP: just another IT system?How can electronic means be used to support public procurement systems
including principles, objectives, legislation, and procedures?
What are the basic differences between e-Tendering and e-Purchasing?
e-GP and IFMIS
What is e-GP?What is e-GP?What is e-GP?What is e-GP?
E-GP is the application of technology to public procurement
An e-GP implementation strategy is a management and reform programme
E-GP is not a software programme but includes software
E-GP is not centralisation of procurement but requires centrally determined standards and procedures
It applies to the acquisition of works, goods and services.
Objectives include to improve governance and efficiency
E-GP is the application of technology to public procurement
An e-GP implementation strategy is a management and reform programme
E-GP is not a software programme but includes software
E-GP is not centralisation of procurement but requires centrally determined standards and procedures
It applies to the acquisition of works, goods and services.
Objectives include to improve governance and efficiency
E-GP reduces the need for detailed and complex regulation to prescribe all the procurement processes and allows greater focus on objectives and outcomes. Ir is the capacity to change the quality of governance that makes e-GP so significant and changes the regulatory needs
Basic SystemsBasic SystemsBasic SystemsBasic Systems
E-TenderingE-Tendering
E-PurchasingE-Purchasing
Information & reporting systemInformation & reporting system
Management system also E-RAManagement system also E-RA
Online Contract ManagementOnline Contract ManagementE-Management – Works & Supply ChainE-Management – Works & Supply Chain
Very different systems
Online Tender Service - LHFOnline Tender Service - LHFOnline Tender Service - LHFOnline Tender Service - LHF
Transparent and openTransparent and open Audit trails, access logsAudit trails, access logs Promotes competitionPromotes competition Downloads tender documents Downloads tender documents
and drawingsand drawings Uploads documents and drawingsUploads documents and drawings Request a hardcopyRequest a hardcopy Search facilitiesSearch facilities Early tender adviceEarly tender advice Electronic lodgmentElectronic lodgment Tenders Seek facilityTenders Seek facility Pending Award, trackingPending Award, tracking Awarded contract informationAwarded contract information Archived contractsArchived contracts Industry e-activationIndustry e-activation
Transparent and openTransparent and open Audit trails, access logsAudit trails, access logs Promotes competitionPromotes competition Downloads tender documents Downloads tender documents
and drawingsand drawings Uploads documents and drawingsUploads documents and drawings Request a hardcopyRequest a hardcopy Search facilitiesSearch facilities Early tender adviceEarly tender advice Electronic lodgmentElectronic lodgment Tenders Seek facilityTenders Seek facility Pending Award, trackingPending Award, tracking Awarded contract informationAwarded contract information Archived contractsArchived contracts Industry e-activationIndustry e-activation
STATISTICSCost to develop $US500,000Time to develop v2 3-9 monthsFirms registered 25,000Tenders 100 / dayStaff required 4Electronic downloads 70%ETL 50%Access rate 2000 / dayUser charges $0.0
Value Added ServicesValue Added Services
Contract Contract E-ManagementE-Management
Low Value, High VolumeLow Value, High VolumeProcurementProcurement
(E-PURCHASING)(E-PURCHASING)
High Value, Low VolumeHigh Value, Low VolumeProcurementProcurement(E-TENDERS)(E-TENDERS)
Governments Governments BusinessBusiness
Contract DevelopmentContract Development
Web Based Contract Web Based Contract ManagementManagement
Government Electronic Government Electronic MarketMarket
RegistriesRegistries
CataloguesCatalogues
Electronic Tender LodgementElectronic Tender Lodgement
Email AlertsEmail Alerts
Queries & AdviceQueries & Advice
Tender AdvertisingTender Advertising
Policies & LegislationPolicies & Legislation
Departments
Department A
Department B
Department C
Department D
Department E
Department F
Department G
e-Procurement Strategye-Procurement StrategyStandardised PortalStandardised Portal
e-Procurement Strategye-Procurement StrategyStandardised PortalStandardised Portal
Businesses
Business A
Business B
Business C
Business D
Business E
Business F
Business G
CHALLENGES CHALLENGES
Key success factors of e-Key success factors of e-GP implementationGP implementation
Risks of e-GPRisks of e-GP
Suggested roadmapSuggested roadmap
CHALLENGES CHALLENGES
Key success factors of e-Key success factors of e-GP implementationGP implementation
Risks of e-GPRisks of e-GP
Suggested roadmapSuggested roadmap
Why are Standards Important?Why are Standards Important?Mars Polar LanderMars Polar Lander
Why are Standards Important?Why are Standards Important?Mars Polar LanderMars Polar Lander
Example: Five clients – five systems
BuyersBuyers
SuppliersSuppliers
Alliance ContractsAlliance
Contracts
Spot Markets
+
Panel Contracts
Spot Markets
+
Panel Contracts
Reverse AuctionsReverse Auctions
Framework
Contracts
Framework
Contracts
Can Technology Complicate Public Procurement?Can Technology Complicate Public Procurement?Can Technology Complicate Public Procurement?Can Technology Complicate Public Procurement?
Technology can liberate procurement from complex rules and processes and allow a focus on better outcomes
Governance standards Governance standards
Regulatory conformance Regulatory conformance
ProcessProcess PerformancePerformance
International Trends in Public Procurement
Warehouse supplies & logistics
Reverse Auctions
Framework Contracts
Decentralisation
e-Procurement and Procurement Methodse-Procurement and Procurement Methodse-Procurement and Procurement Methodse-Procurement and Procurement Methods
Su
ccess In
dic
ato
rsFail I
nd
icato
rs
Weak strategy
Multiple sites
Devolved strategy
Technology driven
IT Project
Closed standards / closed access
Vendor driven
Weak strategy
Multiple sites
Devolved strategy
Technology driven
IT Project
Closed standards / closed access
Vendor driven
A sound Strategy
Central site
Leadership strategy
Objectives driven
Procurement Project
International standards / open access
Needs driven
A sound Strategy
Central site
Leadership strategy
Objectives driven
Procurement Project
International standards / open access
Needs driven
IndicatorsIndicatorsIndicatorsIndicators
Who is in charge of managing the e-GP agenda?
The Lessons LearntThe Lessons LearntThe Lessons LearntThe Lessons Learnt
Vision and leadership - nationalVision and leadership - national
Small Business friendlySmall Business friendly
Management not technologyManagement not technology
Get right expertiseGet right expertise
Needs vs vendor drivenNeeds vs vendor driven
International standards basedInternational standards based
ArchitectureArchitecture
Small steps not big bangSmall steps not big bang
Education and training are Education and training are
essentialessential
Vision and leadership - nationalVision and leadership - national
Small Business friendlySmall Business friendly
Management not technologyManagement not technology
Get right expertiseGet right expertise
Needs vs vendor drivenNeeds vs vendor driven
International standards basedInternational standards based
ArchitectureArchitecture
Small steps not big bangSmall steps not big bang
Education and training are Education and training are
essentialessential
.
How to activate buyers and suppliers and ensure connectivity?Applying technology to automate some existing processes is a waste of time and money
How should the use of electronic means be addressed in the procurement policy and legislation?
Which Path?Which Path?Where, when, and what to start with? Where, when, and what to start with?
Which Path?Which Path?Where, when, and what to start with? Where, when, and what to start with?
How to start? Where to start?How to start? Where to start? Lead Agency?Lead Agency? E-Tendering?E-Tendering? E-Reverse Auctions?E-Reverse Auctions? E-Contract Management?E-Contract Management? E-Purchasing?E-Purchasing? Phased or Big Bang?Phased or Big Bang? Timeframes?Timeframes? Costs?Costs? Security?Security? Policy Sovereignty?Policy Sovereignty? FMIS?FMIS? Evaluation? Pre-qualification?Evaluation? Pre-qualification? BOO? BOOT? SLA?BOO? BOOT? SLA? LegislationLegislation
How to start? Where to start?How to start? Where to start? Lead Agency?Lead Agency? E-Tendering?E-Tendering? E-Reverse Auctions?E-Reverse Auctions? E-Contract Management?E-Contract Management? E-Purchasing?E-Purchasing? Phased or Big Bang?Phased or Big Bang? Timeframes?Timeframes? Costs?Costs? Security?Security? Policy Sovereignty?Policy Sovereignty? FMIS?FMIS? Evaluation? Pre-qualification?Evaluation? Pre-qualification? BOO? BOOT? SLA?BOO? BOOT? SLA? LegislationLegislation
SelectionSelection
Contract ManagementContract Management
Bidding ProcessesBidding Processes
DevelopmentDevelopment
Preparation
Tendering
Purchasing
Execution
.E-Procurement & AutomationE-Procurement & AutomationE-Procurement & AutomationE-Procurement & Automation
ChinaCanadaJapanArgentina
BrazilArmeniaHungaryIndonesia
AustraliaBangladesh
PMIS
WorkflowManagement
Data field Requirements
Electronic Document
Construction
ContractManagement
Account Transaction
Register
Buyer Details& Authority
Register
BuyingRules
Contract Development
Register
Buyer Activity Profiles &Contract Management
Registers
Best PracticeGuidelinesChecklistsTemplates
Case Studies
ComplaintsRegister
Product/Services
Catalogue
ManagementReporting
E-Payments
External Stakeholders Portal ServicesPortal Services
Requests for TenderEOI requests
Procurement PlansPublications including
legislationInformation Services
Document DownloadsDocument Uploads
Private sectorSuppliers
Banking servicesPayment gateway
Related agenciesLKPP
FinanceAudit
SupplierRegister
Pre-QualifiedLists
SupplierActivity Register
Online Tender Box
AuditNGOs
Civil Society
Banking Institutions
E-PurchasingFramework Contracts
IMPACT EVALUATIONIMPACT EVALUATION
Performance indicatorsPerformance indicators
IMPACT EVALUATIONIMPACT EVALUATION
Performance indicatorsPerformance indicators
PerformancePerformanceQualitative and QuantitativeQualitative and Quantitative
PerformancePerformanceQualitative and QuantitativeQualitative and Quantitative
Integrated with BPIntegrated with BP
User friendlyUser friendly
Cost recovery Cost recovery
TransparentTransparent
Take-upTake-up
Satisfaction – buyersSatisfaction – buyers
Satisfaction – suppliersSatisfaction – suppliers
KPIs……KPIs……
Integrated with BPIntegrated with BP
User friendlyUser friendly
Cost recovery Cost recovery
TransparentTransparent
Take-upTake-up
Satisfaction – buyersSatisfaction – buyers
Satisfaction – suppliersSatisfaction – suppliers
KPIs……KPIs……
Parameter Key Performance Indicator
System adoption Procurements carried out electronically as a percentage of total procurement
Tenders floated electronically as a percentage of total number of Tenders
Percentage increase in Supplier base
Supplier and Buyer satisfaction indices
Bid Publication Percentage of contracts for Invitation for Tender published electronically
Percentage of notices publicized electronically
Percentage of documents distributed electronically
Percentage of invitations to tender that are re-tendered
Percentage of invitations to tender where the closing time or date has been extended.
Percentage of invitations to tender amended during tender period.
Percentage of invitations to tender that were preceded by a pre-bid notice or procurement plan
Percentage of invitations to tender that included a procurement plan.
Percentage of tender competitions accurately disclosed with process electronically stored (number & value)
Percentage of invitations to tender that are declared void per year
Percentage of contract award results published online (number & value)
Number of complaints and clarifications
Bid submission Percentage of contracts having sufficient bid submission time from time of publication including amendments as per regulation.
Average number of bidders requesting bidding documents.
Average number of bidders submitting bid.
Ratio of number of bid submissions and number of bidding documents distributed.
Average number of days between closing tenders and completion of evaluation.
Percentage of contracts that required extension of bid validity
Percentage of bids that were non-conforming
Percentage of bid openings where names of attendees, names of bidders and offer prices properly recorded
Percentage of contracts where evaluation committee formed.
Tender Evaluation Report Approval
Average number of days taken between submission of Bid Evaluation Report and approval of contract.
Percentage of contracts for which original published contract terms were re-negotiated
Average number of contracts approved under the correct financial delegation as per regulation
Contract Award Average number of days between final approval and contract award.
Average number of days between evaluation committee recommendation and contract award
Percentage of contract awards published on e-GP Portal including final contract value
Percentage (%) of contracts awarded within initial bid validity period.
Percentage of contacts awarded to non-conforming bids
Percentage of contracts not awarded to least-cost solution
Delivery within originalschedule
Percentage of contracts completed within procurement plan deadline.
Percentage of contracts with liquidated damaged imposed.
Payment Average number of days taken for release payment.
Percentage of contracts where payment was not made as per contract.
Percentage of contracts where interest for delayed payment was made.
Procurement Activity Tracking
Number of Procurement Management Information Reports published.
Number of annual Procurement plans submitted.
Percentage of complaints handled satisfactorily as per PPR guidelines.
Efficiency Average number of bidders compared with baseline
Average percentage in transaction cost reductions
Users
System Performance
Contract Management
Sample KPIsSample KPIsSample KPIsSample KPIs
Paul R SchapperMay 2009
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