2. eGovernment Forum Electronic Procurement - the Commonwealth Perspective Mary Gorman Government Interoperability Facilitation Team 19 March 2003

3. Presentation Overview E-procurement - NOIE’s Role NOIE sponsored projects

4. National Office for the Information Economy NOIE’s Charter is to: provide strategic advice to government on the key factors driving the information economy; coordinate the application of new technologies to government administration, information and service provision, including assistance to public sector bodies to deliver services online; and promote the benefits of, and Australia’s position in, the information economy.

5. NOIE’s Role Strengthen Australia’s participation in the Information Economy, for the benefit of all Australians. Major Objectives: Provide leadership and better coordination within government on IT issues. Focus debate within the wider community on priority issues. Be an advocate and catalyst for change. Consult and cooperate with stakeholders and agencies in exploring issues of common interest.

6. Better Services, Better Government Six Key Objectives: Achieve greater efficiency and a return on investment; Ensure convenient access to government services and information; Deliver services that are responsive to the needs of individual Australian households, business and civic organisations; Integrate related services; Build experience, user trust and confidence in the use of new technologies; and Enhance closer citizen engagement in policy formulation and processes.

7. Government’s Role and Priorities Be an early adopter. Promote a trusted online environment. Reduce the barriers to open e-business through the adoption of national standards. Mobilise government e-business initiatives as a positive catalyst for change. Target activities to key strategic players to create pull through effect.

8. Inhibitors to E-commerce Uptake Industry appear to have four main barriers preventing uptake of e-commerce: Low awareness of benefits. Negative perceptions. No/low skills. Infrastructure issues.

9. Business Use of Selected Technologies Over Time Australian Bureau of Statistics Business Use of Information Technology 8129.0 2001-2002

10. Orders for Goods and Services via the Internet or Web Australian Bureau of Statistics Business Use of Information Technology 8129.0 2001-2002

11. E-procurement - NOIE’s Role Accelerate the uptake of e-business and e-procurement by SMEs Promote a trusted online environment Reduce the barriers Support Government e-business and e- procurement initiatives

12. NOIE’s Role: Government E-Procurement NOIE’s role includes: Encouraging the take-up of e-procurement in government  E-Procurement Demonstration Implementations Commonwealth Electronic Tenders System (CETS) Promoting Interoperability

13. Procurement - Australian Governments Australian governments have identified procurement as a strategic activity which can facilitate the achievement of government, community and industry outcomes in a non- discriminatory framework which focuses on buying outcomes.

14. Government Framework for National Cooperation on Electronic Procurement The Framework encourages the development of an open trading model based on international standards, and aims to promote a more low cost and secure online environment. The Framework will assist both government and business to realise the potential benefits from electronic commerce by promoting the adoption of an open and consistent trading environment.

15. Australian Procurement and Construction Council The APCC is the peak council of departments responsible for procurement and construction policy for the Australian Commonwealth, State and Territory Governments, and the New Zealand Government. It reports to the Australian Procurement and Construction Ministerial Council (APCMC), comprising Ministers with responsibility for procurement and construction policy.

16. APCC Electronic Commerce Action Team The APCC Electronic Commerce Action Team members are drawn from Commonwealth, State and Territory agencies. ECAT aims to develop a coordinated approach to common e-commerce implementation issues.

17. The E-procurement Environment E-procurement is being adopted by three tiers of Government - Commonwealth, State/Territory, Local. Business Case for e-procurement may vary depending on the nature and volume of procurement.

18. Implementing E-procurement in Government Government is implementing e-procurement for the same reasons the private sector is - to improve the way it does business. Government seeks to demonstrate the benefits of electronic trading to the community.

19. The Benefits of E-procurement Systems Can operate 24/7. Potential to integrate some business processes: invoice; payments; confirmation of receipt. Can provide a more sophisticated audit trail. Access to larger marketplace. Reduced processing costs.

20. Benefits of E-procurement to an Organisation More disciplined purchasing within the organisation Volume discounts can be achieved by reducing the number of suppliers used for the same products. Reduces the risk, and associated losses, of multiple accounts to one supplier.

21. Commonwealth Government Procurement Principles Value for Money; Efficiency and Effectiveness; Accountability and Transparency; Ethics; and Industry Development. (Commonwealth Procurement Guidelines Feb 2002)

22. Agency Implementation of E-procurement NOIE’s approach acknowledges the devolved environment and the need for implementation to deliver effective benefits to agencies. Most agencies have a basic e-procurement capability and are doing some online purchasing, generally with a few major suppliers. Individual agencies such as AFFA, the Australian Antarctic Division and Department of Defence are implementing specialised e-procurement systems.

23. NOIE Sponsored Projects Industry Government Standards

24. Industry Projects SME Connector Supply Chain Management ebXML Repository

25. Industry Projects

26. Government Projects Interoperability - XML Repository CETS Catalogue Interoperability Buyers Guide Demonstration Projects

28. XML Repository Project Purpose:  Operationalises G2G interoperability  Demonstrates an architecture to support collaboration in schema development  Works towards standard business semantics, for example: grants applications; driver’s licence details Involvement:  Agencies across jurisdictions.  Possible industry support. Benefit:  Reduced costs.  Greater consistency.

29. Commonwealth Electronic Tender System (CETS) Allows agencies to advertise tenders and publish tender documentation online. Allows suppliers to search for tenders, download tender documentation and submit bids electronically. Successfully trialled in 2001 with a small group of Commonwealth agencies. Is moving into full production in 2003.

30. Catalogue Interoperability Project Purpose:  To enable a buyer in one jurisdiction to discover a supplier in another jurisdiction through their respective e- catalogues. Involvement:  Several jurisdictions Benefit:  Greater exposure for buyers.  Identification of non-technical issues.

31. Buyers’ Guide Project Purpose  To provide a tool to assist agencies to manage e- procurement implementations and supplier relationships.

32. E-Procurement Demonstration Projects Project Purpose:  To encourage the uptake of e-procurement by Commonwealth agencies and to support the engagement of SME’s. Involvement:  Several agencies – project in place with Australian Antarctic Division, the ABC, CSIRO and SBS. Benefit:  Availability of up to date ROI data for agencies.  More SME’s trading electronically with the Commonwealth.

33. E-Procurement for Government Brian.Stonebridge@noie.gov.au

34. WWW.NOIE.GOV.AU