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E-Procurement Linkage System Operations

E-Procurement Linkage System Operations. 2013. 4. Public Procurement Service. PPS and KONEPS Linkage. Current Status of Linkages. Linkage Mechanics. Suggestions Related to Linkage. PPS and KONEPS Linkage. Mgmt. for Goods. 1. PPS and KONEPS Linkage.

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E-Procurement Linkage System Operations

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  1. E-Procurement Linkage SystemOperations 2013. 4. PublicProcurement Service

  2. PPS and KONEPS Linkage Current Status of Linkages Linkage Mechanics Suggestions Related to Linkage

  3. PPS and KONEPS Linkage

  4. Mgmt. for Goods 1. PPS and KONEPS Linkage PPS is the central procurement agency of Korean government providing goods, services and public works Mgmt. for Property Contract Service Construction Service Stockpile

  5. 1. PPS and KONEPS Linkage Total Procurement (101 billion USD) 35% of Total Korea’s public procurement market As of 2012 PPS (35 billon USD)

  6. 1. PPS and KONEPS Linkage PPS (35 billion USD) 20%open to international companies Market opening (7 billion USD) Asof 2012

  7. 1. PPS and KONEPS Linkage 6%of Total Market OpeningVolume Foreign suppliers (403 million USD) As of 2012 Market opening (7 billion USD)

  8. 1. PPS and KONEPS Linkage KONEPS- The Global e-Procurement Brand Major Milestones Overseas Cases • 2002: Launched • 2003: System upgrade • 2007: Expands standard linkage • 2009: Introduces mobile bidding • 2013: Next-generationKONEPS • 2008: Vietnam • 2009: Costa Rica • 2010: Mongolia • 2012: Tunisia Mongolia Uzbekistan Launched Tunisia Vietnam Being Ready Costa Rica Indonesia Peru

  9. 1. PPS and KONEPS Linkage Single Window ProcessStandardization One-stop Service

  10. Supplier Registration Invitation For Bid Bidding Bid Opening /Evaluation Contracting Delivery/ Inspection/ Acceptance Payment Supplier Registration Integrated Notice Bid Bond Encryption Time Stamp Contract / Performance/ Payment Bond Electronic FundTransfer 1. PPS and KONEPS Linkage Certificate Authorities Other Bidding Systems PG System (KFTC) Related Associations Certificate Authorities Financial and Accounting Systems G4C System Authentication Certificate Integrated Notice Commission for Bid Participation Supplier Data Authentication Certificate Contract information Certificate for Tax Payment G4C System Public Org Surely Company Encryption Key Issuance System Surely Company Financial and Accounting Systems Banks Online Transaction All processes are digitalized from supplier registration to payment One-stop service is provided by using the linkage with 144 external systems

  11. Current Status of Linkages

  12. 2. Current Status of Linkages The KONEPS can guarantee the precision of e-procurement transactions and seamless processing through linkages Info linkage Feature linkage Procurement task processing support • Supplier credit info • Past performance • Bond/ guarantees • Tax info • Product certification info • Public authentication • Electronic settlement • Electronic payment • Purchase request info • Bidding info • Contract info • Supplier registration info • Quality Certification info • Product info • Catalog info Procurement info linkage Basic info linkage Procurement info sharing

  13. 2. Current Status of Linkages 2.1 Procurement Processing Support: e-Bidding(1/2) KONEPS XML-SOAP Credit Rating Credit Info Credit Rating Agencies License, Human resource Registration License Info. Certificate Info Product Quality CertificateAuthorities Administrative measure, Unjust supplier Info BidSubmission LinkageDB HumanresourceInfo Pre-performedresult Associations by Industry EligibilityTest Credit level, Certificate Info etc. Administrative measure Public Org

  14. 2. Current Status of Linkages 2.1 Procurement Processing Support: e-Bidding(2/2) 115 types of information gathered from 60 organizations in four groups are linked for the purpose of providing bidding information Linkage Type Linked Entities Linked Info Comment Credit Rating Agencies 6 types 10 Credit info, debt info, etc. Product Quality Certificate Organization New Excellent Technology, Patent, KS Mark, etc. 9 10 Financial info, projects undertaken, key technical personnel, etc. Associations by Industry 10 11 Info on administrative measures, unpaid taxes, temporary or permanent closure, etc. Other PublicEntities 90 29

  15. 2. Current Status of Linkages 2.2 Procurement Processing Support: e-Contract, e-Payment (1/2) Make sure all conditions have been satisfied before signing the contract so that everything can be done with high confidence and precision Nationalfinance Localfinance Educationalfinance Otherfinances KONEPS Financial & Accounting System Bondpurchases Networkloans Commercialbanks Guarantees, bonds,stamp taxes,network loans Contractdeposits Paymentdeposits Contractsigning GuaranteeCompany LinkageDB Stamptaxpaymentinfo Tax payment certificate Taxinvoices NTS/ MOSPA Accounts, tax payments, guarantees Payment Bankaccountinfo KFTC

  16. 2. Current Status of Linkages 2.2 Procurement Processing Support: e-Contract, e-Payment(2/2) Linking 385 types of information in 38 organization in four groups for information linkage in contracts and payments Linkage Type Linked Entities Linked Info Comment Commercial Bank 13 types 17 Kookmin Bank, etc. Surety Company Seoul Guarantee InsuranceCo., etc. 18 19 2 5 National tax-related info Public agency Financial Accounting System National finance-related info 74 3

  17. 2. Current Status of Linkages 2.3 Procurement Processing Support – Related Feature Linkage (1/2) In the case of shared services that can be used for general purpose, more effective, reliable service execution is possible through professional services KONEPS Security Authentication Public authentication module Authenti- cation info Public authentication Performs security authentication on log-in & sent/received documents Electronic Approval Electronic approval module Public Institutions Approval info Performs electronic approval when processing approval in stages Electronic Payment PG module KFTC Payment info Performs electronic payment when making payments

  18. 2. Current Status of Linkages 2.3 Procurement Processing Support - Related Feature Linkage (2/2) By using link modules provided by each institution, service linkage is made in real time whenever needed Purpose Comment Linked Entities Linked Info Public authentication certificate management; electronic signatureprocessing Public authentication organization CA/RA/TSA systems 6 including Korea Info Certificate Authority Public Authentication E-approval institution management; e-approved document processing Electronic Approval MOSPA “On-Nara” System National institution standards Payment account management; payment transfer processing ElectronicPayment KFTC e-Payment System Limitedlinkage

  19. 2. Current Status of Linkages 2-4. Sharing of Procurement Information (1/2) Basic procurement information is collected from public entities and the comprehensive information gathered can be shared widely among users of the KONEPS Public Entities KONEPS Linked system National Finance System Public Entities Contract Request Bidding Notice+ Bid opening Procurement Request E-bidding Self-bidding System Private Suppliers Self-contract Request Status+ Contract Status E-contract Inspection/supervision Public Entity System Associations by Industry Bidding Notice Supplier status+ Supplier performance Payment

  20. 2. Current Status of Linkages 2-4. Sharing of Procurement Information (2/2) The shared information provided by the KONEPS is in XML and data formats; this is then reprocessed into other usable formats for linked systems KONEPS Linked system Product Certification Authorities Public Entities Screening system to test contract fulfillment abilities CertificationInfo NEP/NET Good Software 3 Finance Systems Recycled Produce Product Info Catalog Info Patent Utility Model Associationsby Industry ShoppingMall System Catalog System KS Mark ……

  21. LinkageMechanics

  22. 3. Linkage Mechanics Document Send/Receive Type Other Bidding System Credit Certificate Authorities 20 9 Using the standard linkage solution of KONEPS, procurement information is sent and received in real time or in batches in document format Credit Info Government/ Public Org Supplier Registration Info Bid, Contract Info Tax calculation sheet, Billing statement, Order sheet 28 26 Inquiry Service Type Contract, Invitation tender Catalog Info. Product Quality Certificate Authorities Quality Certified Info Only the information requested by an entity is provided in XML format in real time Catalog Info Standard Linkage System 10 guarantee Surety Company Bank Housing bond, development bond, network Loan Bid, Contract Info RelayType Certified Info 19 15 Pre-performed result Contract Info Document relay is mediated through KONEPS between procurement info company and supplier Related Associations Certificate Authorities 12 4

  23. 3. Linkage Mechanics KONEPS has the structure of sending and receiving linked information through web service Web Service Architecture of PPS Service Provider ServiceProvider Bind Publish Linked Institution System Publish Bind Service Broker Service Requester Web Service Architecture Find Service Broker Service Requester Find Repository

  24. 3. Linkage Mechanics KONEPS provides the API solution for standardize linkage based on web service KONEPS CONNECTION SYSTEM REMOTE SYSTEM Interface system Messaging system Webservice system Document transfer Communication processing call Service log Monitoring module Logging module Schema (file) validation APP execute Schema validation check module Communication check module Error handling Header processing processing Header processing Packaging module Packaging module Logging module Error log module XML Doc store XMLtoDB DBtoXML Header Security Security Header processing processing processing module processing Logging file directory Packaging 호출 module Packaging module Security Security processing module User check User check module Error log module Schema Webservice log Schema validation Logging module validation check module check (file) APP execute Document module Error handling ’ receiving Service link 감시 호출 processing Service binding XML Doc creation Receivin XML storage Services Sending XML storage XML Remote individual system Integrated contract Info Supplier Info

  25. Suggestions Related to Linkage

  26. 4. Suggestions Related to Linkage 4-1. Matters to Note Maintaining intimate partnership system with linked institutions • Partnership terms must be explicitly specified through set of rules or MOU • In particular, credit info and supplier performance must be updated with latest data • For PPS, maintain partnership through national contract law and MOU Use of single standard under common protocol • To maintain a huge amount of info in a consistent manner,it is critical to follow standards • This is more important for info used by many institutions • For PPS, linkage is maintained through compliance of standards like XML and SOAP • Depending on type of linked info, security guarantee must be made in varying degrees • In particular, containing personal info or sensitive corporate info calls for special attention • For PPS, public authentication-based encryption and electronic signature be used Strict insistence on security guarantee appropriate for different sets of information

  27. 4. Suggestions Related to Linkage 4-2. Way Forward Expansion of international procurement information • By linking bidding notices of many countries,one can raise opportunity of participating high-quality suppliers • Can improve reliability of bidding info through the use of trustful eligibility info • To encourage international procurement, standardization of internationalprocurement process and information items is called for • After standardizing the basic process and info items,the same can be applied to individual processes and info items Standardization of international procurement process and info items Use of commone-procurement system for international transactions • Overlapping procurement tasks, use of a common system may be possible • Using a common system can guarantee high reliability and improved efficiency

  28. 4. Suggestions Related to Linkage If there is a system which owns valuable information for procurement Just Link If there is no system and information go by the wayside manually Provide Service and Acquire Information

  29. Jin Sung Jung jsjung@korea.kr

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