“Everyone can access”

Contents Mer-link’s context The route of decision-making What is Mer-link? Lessons Learned

Digital Government in Costa Rica 2009-2010 Prioritized Projects Government  Intranet Implementation of the communications infrastructure (voice and data) that interconnects all public institutions E-Procurement System Implementing a new model of public procurement to ensure transparency and efficiency Digital Tax Implementing a new model that allows tax administration efficiency and effectiveness in tax collection and tax administration.

Digital Government in Costa Rica The actual digitization of government procurement was the most challenging project. But it was also the most attractive, since it creates efficiencies for the institutions, mechanisms to provide access to many companies of all sizes and in the digitization of State

The route of decision-making Diagnosis of the Situation of the Country Best Practices Analysis

Diagnosis of the Situation of the Country Joint investigation by the Technical Secretariat for Digital Government and the Department of Digital Government INCAE 2008: Rapid diagnosis of the status of electronic procurement in the country (3) 2009: Depth review and key findings(4) (3) E-Procurement in Costa Rica. Barahona et. al. San José Costa Rica, 2008 (4) Research Challenges for the adoption, implementation and appropriation of an electronic procurement system in Costa Rica. Barahona et. al. San José Costa Rica, 2009

Results: Diagnosis of the Situation of the Country “Fragmented“ model  Model based on paper. An ineffective use of time. Lack of standardization (Single product catalog and vendors)

Experiencia Internacional Best Practices Experiencia Internacional

Best Practices Platform: ChileCompra It has: Single Vendors Catalog (300K companies) Single Products Catalog Covers the entire contracting cycle 900 affiliated agencies Cost Savings of $ 70 million annually Platform: CompraNet Started as a portal in 1996 In 2006 realized ​​$ 30 billion transaction 30,000 tenders annually 7,000 purchasing units

International Experience PanamáCompra New modalities such as minor procurement contracts, public bidding, bid for best value tendering framework agreement, reverse auction and direct contracting. It Has: Single electronic catalog of products and services Single vendor registration. Participants 7500. 180,000 procedures. Contracts awards value in $ 2.200 million. A portal that integrates a set of subsystems related to purchasing management. Average length of shopping in this modal is 10 days. It Has: Single vendor registration. Standardized Product Catalog System  The model encourages participation of small and medium enterprises and other priority sectors for national development

South Korea Single Window Real-time monitoring of procurement processes. Online marketplace, where real-time interaction tens of thousands of buyers with tens of thousands of vendors Paperless Signature and digital certificate All information is available via the Internet, through a centralized electronic record single case processed. Which can be obtained and accessed in real time.

Technologically feasible and tested South Korea Technologically feasible and tested 37,000 public institutions Single product registration: 120,000 products (UNSPSC Standard) Single vendor registration: registered companies 180,000 visits per day Cost Savings of $ 4,500 million annually (*) Allows the linkage to the vendor and information systems of all public institutions, financial and controlling entities. Follow the ASP business model (Application Service Provider) and which can provide or integrate with all the features of the procurement process.

e-Procurement System (KONEPS). That’s why in 2008, the Technical Secretariat of Digital Government initiated a technical cooperation relationship with the Government of South Korea. MOU(8) is signed, with a view to promoting the implementation of an electronic procurement system in Costa Rica, which takes as basis the standards and technologies of Korea Online e-Procurement System (KONEPS). In this system, then would call as ”Mer-link” On-line Marketplace. (8) Memorandum of understanding between the public procurement service of the Republic of Korea and the Intersectoral Commission for Digital Government of the Republic of Costa Rica in collaboration for managing acquisitions. May 9, 2008

What's Online Marketplace "Mer-link"?

Modernization of the State What is Mer-link? It is the country's response to the challenge of efficient and effective management of public procurement Modernization of the State Standardization Process Digitization Process

Mer-link implementation Phase I Mer-link Portal, Product Catalog, Vendor Registration and Bid notice Publication Phase II Electronic Bidding, Reverse Auction/ Auction, Electronic Contract, Electronic Appeal, Electronic Payment March 2nd, 2010 December, 2010

Progressive implementation Schedule Progressive implementation Project Started July 2009 2009 2010 March 2010 April 2010 May 2010 II Phase Dec 2010 I Phase I Phase I Phase

Main features Model is a “Paperless" which is accessed through Internet Digital signature application process Use of electronic documents Has a Single Vendor registration record Has a Product and Services Catalog e-Procurement’s Regulation Covered in an

“Paperless” Model Electronic Bidding Contract Receiving Payment Purchasing Request Bid notice Publication Electronic Bidding Opening proposals and awarding process Contract Receiving Payment Finalization Vendor Evaluation Single Vendor Registration and Product & Service Catalog

Using Digital Signature Applied during the process Authentication Signature of documents and records Legal value to acts

Electronic Documents

Single Vendor Registration Buyers Social Security Administration, National Registry, Heath, others Vendors

Product and Service Catalog

Benefits for vendors More Visibility into procurement processes (transparency). More customers Visibility of its goods and services. Simplification of procedures. Extended hours. (24 hours) Secured Documents. (Digital Signature) Mer-link’s Call Center. Participation and equality of conditions for small and medium enterprises No charge for use

Benefits for the country Savings of 2% of GDP in price and decrease processing time by up to 50% Contribution to improving transparency Modernization of the State

Lessons Learned "Do not reinvent the wheel" Based on best practices Partnership between public and private sector Demonstration of short-term results Credibility

“Everyone can access”