2. Mainstreaming Electronic Government Procurement (E-GP) Dr Paul Schapper Curtin University of Technology Paul.schapper@iinet.net.au Dr Paul Schapper Curtin University of Technology Paul.schapper@iinet.net.au

3.   An e-GP implementation strategy is a management and reform programme What is e-GP?  E-GP is not a software programme – if it was it would already be an icon on Windows XP

4.   Does e-GP really improve governance and reduce corruption?   Does e-GP really save money and add value?   Does e-GP really improve governance and reduce corruption?   Does e-GP really save money and add value? Some Questions

5. GDP Cost of transactions – 45% of GDP Value of Government Procurement – 20% of GDP E-GP reduces transaction costs by 25%-50% E-GP reduces costs of goods and services by 5%-25% Economic Significance of E-GP

6. Online Contract Management Designed to allow users to define, plan, develop, track and manage the contracting process Best Practice Guidelines & Checklists Templates and Case Studies Records Library Tendering Information & Process Management Tendering Information & Process Management Office systems E-Tender Board

7. Supplier Special Detail Supplier Detail Register Product/Services Register Participation Event Account Transaction Register Buyer Details Register Buying Rules Contracts Register (as appropriate) Supplier Register Logical Procurement Register Model

8. High set up & maintenance cost Finance management centric Legacy Systems Open standards based Market centric Web systems Existing Banking Infrastructure FINANCIAL SYSTEMS E-PROCUREMENT Financial Integration Purchasing / Commerce Cards Process mapping

9. Online Services - Concepts and Reality Identification Codes Classification Codes  Classifies products in relation to each other  Ordinal / Hierarchical  Management analysis  Market research  Supports e-market catalogues  Supports common language market search  Uniquely identifies products  Nominal / Unique  Tracking information  Audit  Supports in-house book-keeping  Supports common language inventory control CataloguesCatalogues

10. Value Added Services Contract E-Management Low Value, High Volume Procurement(E-PURCHASING) High Value, Low Volume Procurement(E-TENDERS) Governments Business Contract Development Web Based Contract Management Government Electronic Market Registries Catalogues Electronic Tender Lodgement Email Alerts Queries & Advice Tender Advertising Policies & Legislation Departments Department A Department B Department C Department D Department E Department F Department G e-Procurement Strategy Standardised Portal e-Procurement Strategy Standardised Portal Businesses Business A Business B Business C Business D Business E Business F Business G

11. Online Services - Concepts and Reality Departments Department A Department B Department C Department D Department E Department F Department G e-Procurement Separate Portals Multiple Standards e-Procurement Separate Portals Multiple Standards Businesses Business A Business B Business C Business D Business E Business F Business G E-GP Portals www.Version A www.Version B www.Version C www.Version D www.Version E www.Version F www.Version G

12. Requirements for B2G e-commerce  Compatible with BP  User friendly  Cost recovery  Transparent  Phased implementation  Connectivity - Internet cafes (legislation)  Compatible with BP  User friendly  Cost recovery  Transparent  Phased implementation  Connectivity - Internet cafes (legislation)

13. E-GP STRATEGY Private Sector Activation Infrastructure & Web Services Functionality & Standards Management, Legislation & Policy Government & Institutional Leadership E-GP Implementation is a Reform Program

14. Typical Implementation Schedule Year 2Year 3Year 1 Bulletin Board Bid Submissions Results & Plans Auto Search ` Online Payments & Securities Analysis & Scoping ` Standard Documentation & Templates ` Policies, Regs & Guides ` Bid Documentation & Plans ` E-Contract Management - Construction ` Goods & Services Catalogues Price Models ` Purchase Orders & Information ` E-Transactions ` Reverse Auctions ` Enabling Strategies – Infrastructure Enhancement, Business / Gov Connectivity & Awareness, Legislation, HR.Policy, etcetera

15. StatusPriorityResourcesResponsibleAction VisionEssential1LeadershipMinisterPublish Mandate & Policy Essential1Policy Minister / ICT TF Document & resource Lead Agency Essential1 Staff & Expertise CPU Career paths, Support Centre, etc Planning & Management Essential2ExpertiseCPU Implement- ation Plan Systems & Standards Essential2Expertise CPU / ICT TF Business Education & Training Essential2 Staff / Expertise CPU / Agencies Develop programme Private Sector Essential2Liaison CPU / Agencies Road shows / Online Info Infrastructure & Web Essential3 Policies / Funding ICT Task Force Telco policy Legislation & Regulation Regs3PolicyCPU Formulate E- Regs Implementation Matrix

16. The Lessons Learnt  Vision and leadership  Commitment  Small Business friendly  Management not technology  Get right expertise  International standards based  Don’t map existing processes  Education and training are essential  Vision and leadership  Commitment  Small Business friendly  Management not technology  Get right expertise  International standards based  Don’t map existing processes  Education and training are essential.

17. Electronic Government Procurement (E-GP) Dr Paul Schapper Curtin University of Technology Dr Paul Schapper Curtin University of Technology

18. LessonsLessons

19. Interoperability & Integration Potential Gain Departmental e-sites & processes Common site Tender advertising, results Common policies, Guidelines Auto search & industry Standard bid & submission E-lodgments Online contract management Online catalogues Online PO & Information Online payments E-reverse auctions e-Procurement Interoperability & Reform e-Procurement Interoperability & Reform Document downloads

20. ECONOMIC DEVELOPMENT Why E-GP? TRANSPARENCY EFFICIENCY E-GP The costs of transactions amounts to 45% of a developed country’s national income - Douglas C North

21. Five Challenges  Vision & leadership  Changing Government organization  Activating local businesses  Connectivity and Infrastructure  Standards, legislation & security  Vision & leadership  Changing Government organization  Activating local businesses  Connectivity and Infrastructure  Standards, legislation & security

22. Which Path?  How to start? Where to start?  E-Tendering?  E-Reverse Auctions?  E-Contract Management?  E-Purchasing?  Parallel Processes?  Timeframes?    How to start? Where to start?  E-Tendering?  E-Reverse Auctions?  E-Contract Management?  E-Purchasing?  Parallel Processes?  Timeframes?  

23. Basic Systems E-Tendering E-Purchasing Information & reporting system Management system also E-RA Online Contract Management E-Management – Works & Supply Chain

24. Phase 1 Information Service Tender Advertising Document Down-Loads Results Disclosure Bid Qualification Bid Up-Loads Bid Processing etc Phase 2 Contract Management Contract Development Phase 3a Catalogue Purchasing Online Transactions Online Workflow Phase 3b Online Bidding Reverse Auctions E-Tendering E-Contract Management E-Purchasing Phased Implementation

25. Online Services - Concepts and Reality Online Tender Service  Transparent and open  Audit trails, access logs  Promotes competition  Downloads tender documents and drawings  Uploads documents and drawings  Request a hardcopy  Search facilities  Early tender advice  Electronic lodgment  Tenders Seek facility  Pending Award, tracking  Awarded contract information  Archived contracts  Industry e-activation STATISTICS Cost to develop$US400,000 Time to develop v23-9 months Firms registered25,000 Tenders100 / day Staff required4 Electronic downloads70% ETL50% Access rate2000 / day User charges$0.0

26. Security infrastructure for electronic tender bids Agency Electronic Tender Box Online receipt of lodgement & email PGP Encryption 2048 bit SSL transmission encrypted to 128 bit Central Electronic Tender Box Logon to Bulletin Board Select tender Lodge tender submission before time lock All Tender Folders are Date & Time locked TENDERERS

27. e-Procurement Framework Portal to e-Government Procurement Public Purchasing Public Tendering Contracted Suppliers Buyer Profiles Search & request info RFQ & Reverse Auctions Shopping trolley requisition Order approved / sent / accepted Receipt of goods / services Supplier invoice & payment Supplier performance Transaction reports Buyer fees Supplier fees Summary reports Contract Development Contract Management Management Format Plan Single Supplier Registry Single Buyer Registry Drawings Online Core Online Contract Management Goods & ServicesConstruction Core Tender Development ETA Program Development Project Management Tender advert, lodge & award Tender Watch FMIS Data Warehouse & Reporting Inventory Government Contract Policy & Management The functionality is complex (but not excessively so) and there is more than one possible starting point

28.   MIKE BOARD – transparency   BREAKING SOLE SOURCE, UK ON WA, ARGENTINA SITE   DECENTRALISATION OF PROC VS SYSTEMS;   EVALUATING PROC EFFICIENCIES???   Business complaints and oversight, designing processes; timelines;   Probity Audits   Too many bidders can reduce value; cost comparison re last contract?   Check also WB presentation on benefits and potential;   Value for money means getting best that business can offer – a business proposition.   Process obfuscates transparency.   Cyber cafes.   Central regulators to accredit agencies will drive training;   Business complaints re different rules within the government   IBM Pinnacle Blue – staff misrepresentation   MIKE BOARD – transparency   BREAKING SOLE SOURCE, UK ON WA, ARGENTINA SITE   DECENTRALISATION OF PROC VS SYSTEMS;   EVALUATING PROC EFFICIENCIES???   Business complaints and oversight, designing processes; timelines;   Probity Audits   Too many bidders can reduce value; cost comparison re last contract?   Check also WB presentation on benefits and potential;   Value for money means getting best that business can offer – a business proposition.   Process obfuscates transparency.   Cyber cafes.   Central regulators to accredit agencies will drive training;   Business complaints re different rules within the government   IBM Pinnacle Blue – staff misrepresentation Case Studies