GeBIZ - New Procurement Method

1. GeBIZ - New Procurement Method CHIA PUAY LONG PROGRAM MANAGER, GEBIZ E-COMMERCE DIVISIONDEFENCE SCIENCE & TECHNOLOGY AGENCY 29 Jul 2003

2. Agenda • What is GeBIZ ? • Functionalities and Features • e-Procurement Methods • Benefits of GeBIZ • GeBIZ Implementation Approach • Challenges Faced • Future of GeBIZ

3. GeBIZ - Government Electronic Business • “One stop, non-stop” centre for Government business • For public service officersto interact with their trading partners for procurement activities • One-stop centre for suppliers to trade with the entire Government • GeBIZ is a Singapore Government wide e-commerce initiative

4. The Partnership • Joint collaboration between • Defence Science & Technology Agency (DSTA) • Ministry of Finance (MOF) • Infocomm Development Authority of Singapore (IDA)

5. What is GeBIZ? • Adopts some features of private sector portals e.g. convenient on-line shopping experience but adheres to public sector procurement disciplines (GPA compliant) which ensures: • Transparency • Fair and open competition • Value for money

6. Trading Partners Ministries & Statutory Boards GeBIZ Enterprise GeBIZ Partner Financial Systems (Oracle, SAP, PeopleSoft) GeBIZ Professional E-Supplier Registration Application & Users

7. GeBIZ Enterprise • Intranet application for government agencies • Decentralised procurement activities Goods Receipt Check Payment Status Invoice Verification Invitation to Quote (ITQ) Framework (RFQ) Invitation to Tender (ITT) Direct Purchase Financial Systems Interface Credit Note Construction Procurement Portal Tender Publication Catalogue Management GeBIZ Admin Estate Management System Period Contract (includes e-Catalogues)

8. GeBIZ Trading Partners • Internet application for trading partners, both local and overseas • Single stop for business opportunities Trading Partner Information Update On-line Supplier Registration View Tender Notices & ITQ Submit Quotations & Response to ITT Receive Purchase Order Submit E-Invoice View Payment Status View Period Contract Details

9. Access to Business Opportunities • Tender Notices, Schedules, Awards • Qualification Notices • Auction Notices • Invitation-To-Quote (ITQ)

10. Electronic Supplier Registration • One-stop registration for GeBIZ trading partners & EPPU (Expenditure Procurement & Policies Unit) • Integrated with government supplier debarment information • Source database for suppliers trading with Govt On-line Payment Upgrade/ Renew Existing Supply Heads Supply Head Application Supplier Debarment Workflow for Supplier Head Applications/ Upgrade/ Renewal View Payment Status Reporting

11. GeBIZ Functionality Features • System is centrally managed but procurement activities are decentralized • Public Sector users can access GeBIZ from the intranet, and approval of requisitions can be done via email or web pages • Support end-to-end transactions with trading partners for various modes of purchasing for ANY goods and services

12. GeBIZ Functionality Features • Supports end-to-end transaction processing with standard SAP, Oracle and Peoplesoft Financial systems • Support personalization & configuration by Agencies • Component based application architecture which is generic and re-usable across applications

13. Catalogues ITQ Purchase Request Approval Purchase Order Receiving GeBIZ- Procurement to Payment AGENCY SUPPLIER GeBIZ Enterprise GeBIZ Partner Tender Tender Notices View Tender Notices Publish Tender Notices Issue Requisition Update catalogue & price Invitation Fill up shopping cart to Quote Submit ITQ Submit quotation Generate Purchase Request Prepare Quotation Submit PO to supplier Approval Process Seek Approval Submit PO Process to supplier Purchase Order Purchase Fund Order Commitment Send invoice Goods receiving Generate Invoice Purchase Order Payment Delivery Prepare invoice for billing Financial Invoice Systems

14. Financial Systems Interface Financial Systems (SAP, Oracle, Peoplesoft) GeBIZ Purchase Order Fund Commitment Status Purchase Requisition Pre-encumbrance Status Financial Systems Financial Systems Supplier Master Chart of Account Interface Gateway Staging Area Staging Area Material Master Goods Receipt Item Category Goods Return Closed PO Invoice Payment Status

15. E-Procurement Methods in GeBIZ • Catalogue Buy - Established Period Contract • Electronic Catalog • Printed Catalog • Framework Agreement Buy • Request For Quotation (RFQ) • Self-Service Buy • Invitation To Quote (ITQ) • Assisted Buy • Complex ITQ or Invitation To Tender (ITT)

16. Differences between ITQ and RFQ • Request For Quotation • Framework Agreement established between buyer and suppliers • 2. Closed among awarded suppliers • 3. Quotation Approval Authority Limit is S$1M Invitation To Quote • No Pre-defined agreement established 2. Open / Closed 3. Quotation Approval Authority Limit is S$70K

17. Typical Buying Scenario Items found in framework agreement? Simple Purchase? Items found in printed catalog? Items found in e-Catalog? N N N N Start Y Y Y Y Call ITQ (self-service buy) Assisted Buy Raise RFQ to buy from framework Buy from printed catalog Buy from E-catalog Issue PO

18. GeBIZ PO Goods Receipt E-Invoice Verification View Payment Status Close PO Financial System Typical Buying Scenario

19. New Procurement Method: Online Reverse Auction Since Jan 2001, Defence Science and Technology Agency has conducted 27 online reverse auctions and achieved a total of S$10m (or 11%) savings from S$89m worth of purchases As part of our e-Government programme, DSTA is now assisting other ministries with reverse auctions so that the benefits of procurement through reverse action can be enjoyed by all public sector agencies. The intention is to aggregate demand from different ministries and agencies so as to purchase in bulk and enjoy even lower prices for Government purchases.

20. Benefits of GeBIZ - Buyers • Increase transparency in Government Procurement • Encourage competitive bidding • Promote Fair and Open Competition • Best value for money • Global reach to suppliers • Better overview of procurement activities and purchasing patterns within the agency • Aggregation of requirements to establish cross-agency period contracts or framework agreements

21. Benefits of GeBIZ -Buyers • Better work efficiency and reduce procurement lead-time • Streamlined workflow processes eliminate duplicate data entry • Increase data accuracy & reliability • Online reference to past procurement records

22. Benefits of GeBIZ - Suppliers • Open access to business opportunities • transparency of opportunities and information on government procurement • Convenience • One-Stop Business Centre to trade with entire Government sector electronically • Online transactions & enquiry • Increased confidentiality • Responses are encrypted • Low start-up cost

23. Phased Implementation Approach Jun 2000 – Catalog buy, Tender Publication, reach to all agencies, Set up of GeBIZ Service Centre (GSC) GeBIZ Phase I GeBIZ Phase IIA Nov 2001 – ITQ, TP Registration, Financial Interfaces to ORACLE & SAP GeBIZ Phase IIB Apr 2002 – RFQ Sep 2002 – ESR GeBIZ Phase III GeBIZ ITT, credit note, FI with PeopleSoft, deployment of FI, Direct PO Current – NFS FI, E-link with MINDEF, Billing, Mgmt Reporting, Demand Aggregation (Planned) GeBIZ Phase IV

24. Mandatory Use of GeBIZ • FC 15/2000 • Issuance of electronic PO via GeBIZ fro Service-Wide period Contract from 1 December 2000 • FC 4/2002 • Online tender publication via GeBIZ starting from 1 Apr 2002 • FC 5/2002 • Use of Framework Agreement Module from Aug 2002 • Use all GeBIZ modules (except GeBIZ Professional by July 2003

25. Challenges Faced • Project Management Challenges • System is dynamic, new requirements surfaced almost every week • Phased Implementation Approach • “Think big, start small, scale fast” Manage the complexity • Technical Challenges • Scalability and robustness • Need to integrate many components Strong system and process integration capability is key

26. Challenges Faced • Design Challenge • One system for ALLagencies and ALL type of purchases • Diversity of requirement and practices across different agencies • effort on process rationalization, streamlining & standardization • flexibility in configuration to cater to specific scenarios • Standardization of Financial System Interface for different financial systems

27. Challenges Faced • Getting the Users On-Board • Buyer and Supplier Community Ramp-Up • Change management across all agencies • Convince buyers & suppliers of benefits • Revise internal procedures • Manage the transition • Confidence-building • Involve end-users in requirement-gathering • Solicit feedback regularly • Provide adequate training • Provide good post-training support • Operation Support for large buyer and supplier base • Proactive helpdesk support

28. Challenges Faced • Other Challenges • Security, Audit, Legal Issues • Terms & Conditions to govern the conduct of e-procurement electronically • Maintain traceability and accountability

29. Future of GeBIZ • Portal to enable all e-commerce transactions with Govt of Singapore (GOS) to be performed electronically • Integral part of e-government services • Aggregation of demand across GOS and achieve best value for money for all agencies including publicly funded agencies • GeBIZ as a means to explore new business model and processes enabled by technology • Primary means to promote e-commerce adoption amongst trading community in Singapore

30. e Thank You Welcome to visit us at : www.gebiz.gov.sg