“Using IT as a Control Method over Public Contracting in Colombia”

1. “Using IT as a Control Method over Public Contracting in Colombia” Julio César Turbay Quintero General Comptroller of the Colombian SAI President of OLACEFS

2. CONTENT • INFORMATION TECHNOLOGIES BACKGROUND –IT- • IT IN THE GOVERMENT ACTIVITIES • IT IN FISCAL CONTROL • INFORMATION SYSTEM FOR MONITORING STATE CONTRACTING -SICE- • 5. E-CONTROL PROSPECTS

3. 1. IT BACKGROUND • Telecommunications, extended to the concept of information technologies and communications, which are in permanent evolution, generates the globalization of different human activities, economics and culture bridging geographic distances, which is required to be "connected". • Our country has been involved in this networked world integration process, where efforts must be made for social inclusion and competitiveness.

4. 2. IT in Goverment Activities • Colombia has take in the recent years some measures to insert IT into society, which can be seen in the Information Technology and Communication National Plan"PN ICTs" which basically promote: 1)The development of an institutional and regulatory framework to consolidate the necessary infrastructure that generates prosperity. 2) Expand the use and appropriation of IT in the community, businesses and government entities.

5. 2. IT in Goverment Activities The Colombian SAI strategy has been focused on the implementation of the Intranet Governmental in: • Technological platform that facilitates the flow and exchange of information between entities. • More efficient use of state resources and optimum development of government services .

6. 3. IT IN FISCAL CONTROL • The Colombian SAI is responsible for overseeing the efficient management of public resources. • During recent years we have made the effort to introduce "e-control", through various tools including the Information System for State Procurement Supervision - SICE. • In 2000 through the issuance of Law 598 SICE obtained his legal feasibility.

7. 4. SICE • SICE is an information system that integrates relevant data from state procurement process, allowing self-regulation, institutional control and visibility of operations. • Grant for public and private actors know the ease of real-time buying the state with their quantities and prices, who produces, who sells them and how often. • This thought from the control as a technology [Web-enable and N-tier], which allows to compare data and to identify price distortions employed against the market.

8. 7 2 1 10 9 8 6 5 4 11 3 4. SICE Legal Framework and Evolution Resolution 5554 de 2004 (Sanctions) Resolutions 5313 and 5314 of 2002 Decree 2170 of 2002 (Art. 6) Case law C – 892 of 2001 Case law C – 716 of 2002 Resolution 5339 of 2002 Resolution 5447 of 2003 Case law– 384 of 2003 Act 598 DE 2000 Decree 3512 2003 Resolution 5373 2000 2001 2003 2004 2002 ACTS JURISPRUDENCE DECREES

9. 4. SICE Control Entities State Entities Citizenship Current actors involved in the SICE implementation Operator System Suppliers DANE, Publishing, FormerFinanceMinister, Guilds Cooperating Entities Special Users

10. Public Private Fiscal Control Budget National Press Records Procurement Plans Records Consultation DECLARES Facing update What Prices Goods and services Contract Prices When LP IP How Reference Prices CD 4. SICE SICE Components Goods and Services Single Catalog Demand Offer Control STATE SUPPLIERS COLOMBIAN SAI PRICE LIST Intelligent Control

11. Information System Comparison and Interpretation COTEJA - - INTERPRETA % de Contratación % de Contratación % de Contratación Recruitment % % de Contratación Suppliers NIT (Proveedores) Capacidad Residual Risk map Mapa de riesgo Mapa de riesgo Residual capacity price thresholds Umbrales de Precios Nacional Natio Sujetos de Sujetos de Sujetos de Información Information Regional Control Control subjects Control Control for DIAN para la DIAN Local Local Information for DIAN (custums) Información para la DIAN Identifying universes Identificar Universos Identificar Universos y Recurrencias And recurrences y Recurrencias 4.SICE Intelligent Control

12. 4. SICE Unique Catalog of Goods and Services TYPE CLASS SUBCLASS GROUP ITEM Goods and services classification with international standards Specific groups skills From general to specific

13. 4. SICE Qualifiers ITEM Weight 50 Gr 75 Gr Size Material letter legal Presentation Concentration Bond Shape Ream (500 pcs) Dozen (12 u.) Color Accessories Use 1.52.2.1.2 = Ream (500 u) of Bon paper letter size of 75 gr

14. 4. SICE PRICES SICE price recorded in the following terms Price per unit Tax included Geographical Location of delivery Reference Prices Monetary compensation for the goods or services acquisition, which consideres all the commercial terms offered by the provider Offer Prices

15. 4. SICE Prices Reference Prices Cut prices upper limit Price Thresholds Indicative Price Lower Limit Cut prices

16. Entidades del Estado Entidades del Estado Entidades del Estado Entidades del Estado Entidades del Estado Entidades del Estado INTERNET INTERNET INTERNET Indicative price consultation pre-adjudication Purchasing Plan Award Award publicaction Issuing invitations Contracts registration Indicative price consultation Receiving and publishing offers 1 1 2 2 2 8 8 8 9 9 9 10 10 10 11 11 11 12 12 12 14 14 14 1 1 2 2 2 8 8 8 9 9 9 10 10 10 11 11 11 12 12 12 14 14 14 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 13 13 15 15 15 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 13 13 15 15 15 Reference price record Bid invitations Search of the demand for procurement plans and invitations to tender Results of calls Recruitment monitoring License prices Consultation of target prices to bid Suppliers 4. SICE INTERNET

17. 4. SICE SUPPLIERS OBLIGATIONS Registration Password Reference Prices Registration -RUPR- (in spanish)

18. 4. SICE 2001 2004 2005 2002 2003 April 53 (47) Pilot Institutions 1 Renewal Program for Public Administration: splits, mergers, liquidations August 110 (77) Entities 2 July 410 Entities December 3 126 Sectional + Entities 4

19. 4.SICE System Statistics

20. 5. SICE Prospects through e-control -State systems integration with related State procurement process • SECOP (in spanish): Procurement Plans and State contracts • SIIF (in spanish): Budget • National Press: Contracts publication • Control Tool for Territorial Comptrollers • Control component development to generate risk maps for control subjects and sectors