e-Procurement System (SETAD) Iran Center for e-Commerce Development (ICeCD) November 2013 Iran Public e-Procurement System (SETAD)

Public e-Procurement System www.setadiran.ir Phases 1 Small & Medium purchases Definition Iran Public e-Procurement System that is called “SETAD”, is a web based solution for doing all transactions (Tenders & Auctions) by public organizations. This system enables the buyer executive agencies to do all stages of the purchase & Auction process in a decentralized and integrated system. SETAD is the largest IT project in the country 2 e-Auction 3 e-Tender (Major purchases) 4 Purchasing of Services 5 Foreign purchases

Public e-Procurement System Goals and objectives Improve efficiency & transparency in purchasing process (55% achieved) Managing and supervising public sector purchases (68% reached) Following the same & common purchasing policies and processes by the public sectors (85% achieved) Security management and application of digital signature in the country (100% achieved)

Public e-Procurement System Goals and objectives Product management and application of national classification system (Iran-code) in the country (82% achieved) Preparation for market control & price stability (47% achieved) Data and information management (62% achieved)

General view of Iran Public e-Procurement System (SETAD) Purchasing e-Auction e-Tender Registration Registration Registration Purchase Request Auction Notice Tender Notice Request For Quote (RFQ) Prepare Offer (Bids) Prepare Offer (Bids) Ordering Opening & Award Opening Delivering Return Of The Deposit Evaluation Payment Payment & Exit Permit Award Delivery Contract Execute Contract Payment

Iran Public e-Procurement Stake holders Ministry Economic Affairs and Finance Suppliers Banks Certificate Bodies Corporative Organization Transportation Companies SETAD Stake holders Standard Certification Body Digital Signature Certificate Authority (CA) Supreme Audit Court Public Buyers Trade and Merchants affairs center Iran Code Insurance Companies

Public e-Procurement System Challenges SETAD user resistance in all governmental agencies to do their purchases through the system Internal end users resistance to learn multiple procurement systems and procedures Immaturity of suppliers Lack of the end user IT knowledge Public e-Procurement System

Methodology Analysis phase Design phase Development phase Deployment and maintenance phase Software Security Doing bench marketing studies Doing feasibility study project Defining the project scope and the schedule to run the project Determining the Priorities, risks and software development processes Identifying the Strategies and the solutions available to reduce the risks 8

Methodology Analysis phase Design phase Development phase Deployment and maintenance phase Software Security Stabilizing the product requirements Designing the software architecture Specifying the features, terms and limitations of the system Defining and designing the user interfaces (UI) Testing and evaluating the prototype made, to eliminate the risks To ensure that the proposed vision is able to be implemented within the software architecture 9

Methodology Analysis phase Design phase Development phase Deployment and maintenance phase Software Security To develop physical model from the logical model To ensure the product stability To ensure that all the project stakeholders are ready for system deployment To ensure the accuracy and quality of the developed system 10

Methodology Analysis phase Design phase Development phase Deployment and maintenance phase Software Security Training the users Supporting documents Including the user guides documents FAQs Online manuals Making facilities and executing call center and help desk Evaluated, prioritized and designed needs and necessary changes 11

Methodology Analysis phase Design phase Development phase Deployment and maintenance phase Software Security Developed in J2EE Using IBM DB2 Communication protocols: TCP/IP V4.0 Security in 3 main layers : 1-Application layer 2-Web Server layer 3-Database layer 12

Methodology Analysis phase Design phase Development phase Deployment and maintenance phase Software Security Using digital signature in documents Equipping the system with PKE (Public Key Enabled) capabilities Creating Security Operation Center The possibility of encryption using conventional hardware such as HSM The possibility of time stamping critical events Provide a comprehensive solution to facilitate security operation center conceptual model 13

Re-Engineering Analysis of the Iranian government buying process in order to facilitate the buying process and process integration Standardization of the buying forms through the Iran Public e-Procurement System Standardization of the electronic goods catalogs

Standards Risk Assessment and Use the controls based on ISO27000 series of standards to reduce the risks UNCEFACT /BRS/ TBG1 in catalogue process RUP with UML SOA J2EE JDBC Type 4 Web service PKCS7 for Certification

Action taken so far Developing modules and processes that is needed by public departments based on government laws Using the national classification system (Iran code) for the goods and services Coordinating and settlement with public supervision bodies and organization Preparing facilities for internet payment from government account to suppliers based on state cabinet laws

Statistical reports 1 Trained public agencies Users (Purchase) 2,490 Row Index Number 1 Trained public agencies Users (Purchase) 2,490 2 Trained public agencies Users (Auction) 300 3 Digital Signature certificate Issued (Purchase) 1,010 4 Digital Signature certificate Issued (Auction) 5 number of product code (Iran Code) 1,600,000

Total number of registered suppliers (Purchase)

Total number of registered buyer executive agencies (Purchase)

Total number of purchases

Total number of registered bidders (Auction)

Total number of auctions

The volume of auctions ($)

Achievements & Results Improvement General Reducing human errors approximately up to 65% Electronic security and more protection against illegal activities Reducing corruption and preventing abuse in executive bodies by 35% Increasing competition Ability to provide different kinds of managerial and supervisory reports Ability to on-line subtle control of public purchase process at any time and any place

Achievements & Results Improvement Purchase & Tender Increase efficiency in purchasing process - Improvement in management costs by 38% - Reduction of buying costs by 54% - Reducing business cycle time by 62% Reduction of paper costs up to 70% Reduction of opening time from 8 hours to 35 minutes

Achievements & Results Improvement Auction Reduction of opening time from 10 hours to 30 minutes Possibility of holding several auctions simultaneously compared to the manual system Profit increase by 100% compared to the manual system

Next Step Onward Development of a site for private buyers Developing system in order to carry out foreign purchases Developing system in order to provide online insurance services for suppliers System development in order to provide transportation services for buyers and suppliers Allow the use of SMS to inform the users Using the mandatory and optional standards for goods System improvement

Thank You

General view of SETAD in Purchasing Goods Services Real State Subject Of Purchase Ministries Staff Sub Ministries Departments All Governmental Agencies Scope Of Implementation Buyer Registration Supplier Registration User Profiles eCatalogue Registration Modules Purchasing Modules Purchase Request Request For Quote (RFQ) Ordering Delivering Payment Management Reports Review Complaints Supplier Evaluation Supplier Survey Additional Modules Small Transactions Medium Transactions Volume Of Purchase Return Purchase Type 1 Purchase Type 2 (Board) Type Of Purchase

General view of SETAD in Auction Movable Immovable Subject Of Auction Ministries Staff Sub Ministries Departments All Governmental Agencies Scope Of Implementation Registration User Profile Registration Modules e-Auction Modules Auction Notice Prepare Offer(Bids) Opening & Award Return Of The Deposit Payment & Exit Permit Delivery Management Reports Review Complaints Sale Additional Modules Medium Transaction Great Deals Volume Of Auction Return Type Of Auction Limited Public

General view of SETAD in Tender Goods Services Subject Of Tenders Public (1or 2 Stage) Limited (1or 2 Stage) Qualitative Evaluation Type Of Tender Scope Of Implementation Ministries Staff Sub Ministries Departments All Governmental Agencies Registration Modules Tenderer Registration Bidder Registration User Profile e-Catalogue e-Tendering Modules Tender Notice Prepare Offer(Bids) Opening Evaluation Award Contract Execute Contract Payment Additional Modules Management Reports Review Complaints Document Management Archiving Digital signature Time Stamp Hashing & Encoding Security infrastructures Return Volume Of Tender Major Transaction