E-Procurement : Towards Transparency and Efficiency in Public Service Delivery

Presentation Outline Definition Benefits Risks and Challenges Important Considerations

Definition The Use of ICT … – to publish and distribute public procurement information – to support procurement transactions – to monitor and manage public procurement … to innovate public procurement

e-Procurement Vs. e-Purchasing e-Procuremente-Purchasing Specialized goods, works, servicesStandard goods, works, services High valueLow value Low volumeHigh volume Price & qualityPrice e-Bidding e-RfPe-RfQ e-Catalogues

Challenges of Current Procurement System Manual processes Long chain of internal authorizations and scrutiny (at times involving several departments) Several visits by Vendors to Departments Generation of reams of paper-based statements and evaluations

Opportunities 1.Reduction in public procurement’s vulnerability to corruption 2.Foundation for transparency through provision of Procurement Information – Procurement policies – Procurement law – Procurement regulations – Procurement notices – Awarded contracts – Etc.

Opportunities 3. Potential to reduce administrative costs by eliminating redundant processes and improving the efficiency of public procurement E-Tendering (download of documents, clarification, submission, opening) Online quotations Electronic catalogues

Opportunities 4. Integration – Online qualification – Contract Management – Supply Chain Management – Systems integration

Benefits Improved Governance – Transparency of public procurement – Less opportunity for fraud & corruption Efficiency Gains – Competitive prices & reduced transaction costs – Procurement management based on data Economic Development – Redistribution of savings – Private sector activation & infrastructure development

Benefits Better access to government market – E-procurement creates greater opportunities for the business community to sell their goods and services to public agencies Public procurement monitoring – enhances monitoring and compliance to regulations

Stakeholders e-GP Project FinanciersUsersMarketplace e- Government Super Users Pilot entities Manage ment Others Consult ants Supplier s Private Sector Govt ICT Infrastr ucture Ministry of TWSC E-Govt Secretar iat Ministry of Finance DonorsOthers

Key Success Factors Government leadership and management of the Implementation Plan. – ZPPA as the Lead agency – E Government Secretariat as key stakeholder – Ministry of Transport, Works, Supply & Communications Supplier awareness, training and change management – e-GP training – Change management – Awareness creation through workshops.

Key Success Factors Legislative support in place – ICT Act. – Electronic transaction Act. – Public Procurement Act currently under review Achieving early successes – Enhanced website – Publishing procurement opportunities, contract awards and Procurement Plans on the ZPPA website

Challenges Lack of awareness and capacity building programs: – e-GP is not just ICT. – Lack of institutional capacity for public procurement. Resistance to change: Procuring entities and bidders’ reluctance to convert to e- procurement.

Challenges IT infrastructure and Internet readiness: – IT infrastructure for e-commerce not mature in many PE’s. – IT divide in different regions within the country. Lack of cross-governmental coordination: – Multiple platforms may jeopardize long-term goals of e-procurement. Ineffective implementation: – Technology can complicate rather than simplify procedures.

Challenges

Important Considerations Strong government leadership Appropriate implementation framework (e.g. procurement policy, legislation, capacity building, standards) Infrastructure development (connectivity) Complaints mechanism & resolution Oversight over collusion & bid rigging E-Procurement is variedly understood E-Procurement is more about procurement than technology It’s not a panacea It’s a moving train

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