Download Electronic Government Procurement

Workshop on Implementing
Electronic Government Procurement (e-GP)
Delhi, India – May 18, 2006
The Role of e-GP in Improving
Public Procurement Performance
Knut Leipold
The World Bank
May 18, 2006
Workshop on Implementing e-GP
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Voice of the Pros
• “E-Procurement can protect life!”
• “You loose some USD 450,000 every day!”
• “It allows for increased competition and less fraud.”
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Voice of the Cons
• “Look at this! Not only that we have to use
this E-Procurement system, we even have
to pay USD 12,000 for it this year!”
• “We prefer the offline procurement process.”
• “We don’t like the e-Procurement system as
it increases our workload.”
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Objectives
• Opportunities & Challenges of
•
e for GP
e is a tool to improve GP
• Encourage to use
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e for GP
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Agenda
May 18, 2006
1.
Opportunities
2.
Challenges
3.
Lessons Learned
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Agenda
May 18, 2006
1.
Opportunities
2.
Challenges
3.
Lessons Learned
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Benefits of e-GP
• Transparency
• Efficiency
• Economic Development
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Transparency
• Information on public procurement function
• Information on procurement transactions
• Compliance
• Reduced corruption
• Audit trails & institutional memory
• Improved quality of public procurement
reporting, monitoring, and management
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Efficiency
 Price decrease
• Increased price transparency
• Increased competition (!)
• Aggregated demand
• Lower transaction costs for suppliers
• e-Reverse Auctions
 Reduced transaction costs
• staff, material, workflow
• online vs. offline publication
 Time is money!
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Economic Development
Public
Procurement
• Government = single largest
purchaser in a national economy
• Value of public procurement:
10-15% of GDP
• Redistribution of taxpayers’
money
GDP
• Private business activation
• Infrastructure development
• Capacity building
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Beneficiaries of e-GP
• Transparency
Government
• Efficiency
• Economic Development
Taxpayers
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What is the Problem?
Objectives of GP:
Benefits of e-GP:
• Open & fair competition
• Open & fair competition
• Efficiency
• Transparency
• Improved quality
• Efficiency
• Transparency
• Improved quality
E-GP does not replace GP. It is a tool that can improve and
reform GP. The challenge is successful e-GP implementation,
as it addresses far more than just HW & SW.
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Agenda
May 18, 2006
1.
Opportunities
2.
Challenges
3.
Lessons Learned
Workshop on Implementing e-GP
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e-GP Implementation
Understanding
Understanding
Techno-Technology
logy
Standards
Standards
May 18, 2006
ManageManagement
ment
e-GP
Infrastructure
Infra-
Policy
Policy
LegisLegislation
lation
Buyer &
Supplier
Activation
structure
Workshop on Implementing e-GP
Buyer &
Supplier
Activation
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Successful e-GP Adoption
Understanding
Management
Policy
• Think Big, Start Small
• Learn from Others
• Assess the Current Situation
Technology
e-GP
Legislation
• Develop a Strategy
• Implement the Strategy
Standards
May 18, 2006
Infrastructure
Buyer &
Supplier
Activation
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Agenda
May 18, 2006
1.
Opportunities
2.
Challenges
3.
Lessons Learned
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Lessons Learned: Dos (I)
• Have a vision and strategy
• Get a Champion on high political level
• Get stakeholder buy-in
• Develop appropriate legal framework
• Establish a Lead Agency
• Run an awareness raising campaign
• Build capacity
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Lessons Learned: Dos (II)
• Review procurement regulation and processes
• Follow international standards
• Phased implementation
• Select a sustainable business model
• Integration (link with other systems)
• Strengthen international dialogue
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Lessons Learned: Don’ts
• There is no reason to wait!
• E-GP is far more than technology!
• E-GP does not solve all public procurement issues!
• Decentralized public procurement does not require
decentralized e-GP systems
• Don’t mix digital with electronic signature!
• Don’t forget the private sector!
• Don’t set unnecessary barriers to the use of e-GP!
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For More Information
www.mdb-egp.org
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Thank You!
[email protected]
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Back-up slides
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Time Savings
Activity
Paper-based
Web-based
500 A4 pages mailed to 9 suppliers
4.500 pages
1.4 Mb disk
space
Preparation of tender
12 hours
0.5 hour
Data capturing – 10 fields per
record at avg. 5 characters per field
at 0.5 second per character for
2.000 items and 9 suppliers
125 hours
1 hour
Evaluation and what-if scenarios on
18.000 records
40 hours
1 hour
Contract preparation and other
documents
8 hours
0.5 hour
Total
185 hours
3 hours
Source: Intenda Ltd., Pretoria, South Africa, 2003
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Fighting Corruption with e-GP (I)
Reducing fraud and corruption in public procurement:
• online disclosure of procurement notices
• online disclosure of awarded contracts
• open and fair competition
• increased compliance with procurement policy
• less opportunity for corruptive, collusive, fraudulent, and
coercive practices
Potential for fraud and corruption:
• inappropriate application of technology
• e-Corruption
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Fighting Corruption with e-GP (II)
E-Procurement can reduce opportunity of fraud and
corruption in the context of government procurement if
• driven by political will
• implemented appropriately.
High level of transparency can be achieved at low
costs and no need of major changes of the existing
legal framework.
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