Mainstreaming Electronic Government Procurement (E-GP)

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

2. 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

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

4. GDP Economic Significance of E-GP 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% Cost of transactions – 45% of GDP

5. 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 Tendering Information & Process Management Office systems Records Library E-Tender Board

6. Logical Procurement Register Model Product/Services Register Supplier Register Buyer Details Register Supplier Detail Register Participation Event Supplier Special Detail Buying Rules ContractsRegister (as appropriate) Account TransactionRegister

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

8. Catalogues • 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 Identification Codes Classification Codes

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

10. Departments E-GP Portals Businesses Department A www.Version A Business A Department B www.Version B Business B www.Version C Business C Department C www.Version D Business D Department D Business E Department E www.Version E www.Version F Business F Department F www.Version G Department G Business G e-Procurement Separate PortalsMultiple Standards

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

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

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

14. Implementation Matrix

15. 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 The Lessons Learnt . WHAT IT TAKES TO DELIVER

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

17. Lessons

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

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

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

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

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