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Brazil Electronic Government Procurement ExpoXangai – feb/2010

MINISTRY OF PLANNING Secretariat of Logistics and Information Technology. Brazilian Government Procurement. Brazil Electronic Government Procurement ExpoXangai – feb/2010 . MINISTRY OF PLANNING Secretariat of Logistics and Information Technology. WHO AM I?

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Brazil Electronic Government Procurement ExpoXangai – feb/2010

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  1. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Brazilian GovernmentProcurement Brazil Electronic Government Procurement ExpoXangai – feb/2010

  2. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology WHO AM I? • Name: CARLOS HENRIQUE DE AZEVEDO MOREIRA • Education: CIVIL ENGINEER POST GRADUATE IN PHILOSOPHY OF EDUCATION M. Sc. SYSTEMS ENGINEERING AND COMPUTER SCIENCE • From: BRAZIL - MINISTRY OF PLANNING, BUDGET AND MANAGEMENT • Position: DIRECTOR OF LOGISTICS, WORKS WITH PUBLIC PROCUREMENT SINCE 2000

  3. MINISTRY OF PLANNING GOALS OF THIS PRESENTATION TALKING ABOUT: The Brazilian experience in procurement • Regulations • Information Systems • Electronic Procurement, Information Technology structure • Results, options, strategies • Lessons learned

  4. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology BRAZIL´s Context • Territory Extension • 27 states; 8.5 million km2; large social and infrastructure variations • Administrative Organization (spheres) • Union, states and municipalities • Unique competitive bidding act (Act.8.666) • Federal Executive structure • Ministry of Planning, Budget and Management • Secretariat for Logistics and Information Technology

  5. Federal Constitution • The Brazilian Constitution is a codified and partially entrenched text with over 200 articles, due to the characteristics of Roman law. • Among other ample issues, it states that the whole body of the Public Administration in Brazil must abide by the laws and regulations of government procurement procedures, except for a list of special cases that can either be waived or deemed as inapplicable (i.e.: emergencies and disasters, war, Intelligence agencies, Armed Forces, etc).

  6. Act 8666-93 • This Actestablishes general rules on government procurement for every sphere of the Federation (Federal Government – or Central Government; the states; the Federal District and the municipalities). • It also states some of the principles under which government purchases must be held: isonomy, reverse auction, promotion of sustainable national development, legality, impartiality, morality (honesty), equality, publicity, abidance by the procurement notice, public awarding to the winner.

  7. Act 8666-93 Procurement modalities in Brazil: • I - competitive bidding; • II - request for quotes; • III - request for proposals; • IV - public contest; • V - auction.

  8. Act 8666-93 • Competitive bidding – for purchases and contracts ranging between R$ 650.000,00 to R$ 1.500.000,00 and above. • Request for quotes – for purchases and contracts ranging between R$ 150.000,00 and R$ 1.500.000,00 (for engineering works and services) or from R$ 80.000,00 to R$ 650.000,00 (for purchases and services).

  9. Act 8666-93 • Request for proposals – An invitation to participate in the bidding process is sent directly to at least three suppliers. For purchases and contracts from R$ 80.000,00 to R$ 150.000,00. • Public contest – for technical, scientific or artistic works. The winners are awarded prizes or prizes in cash as previously defined in the procurement notice. • Auction – designed for the sale of used assets no longer useful to the Administration; products legally seized; or Federal Government's estates.

  10. Act 8666-93 Procurement proceedings may be deemed as inapplicable: • I - for the acquisition of equipment that can only be supplied by an exclusive (single) supplier; • II - for contracting specialized technical services; • III - when contracting with artists.

  11. Law 10520-2002 • Reverse auction – used for purchasing goods and common services; • Can be held through electronic means.

  12. Technologies • Requirements • System Archtecture • Monitoring • Administration Services • Services Level Agreement (SLA) The Comprasnet & SIASG Architecture

  13. Requirements & Technologies  Government Purchases Sub-systems  Government Procurement Publicity  The Comprasnet & SIASGnet Portals Evolution of Government purchases through Electronic Reverse Auction Systems Architectures Monitoring Services managementService Level Agreement Management (SLA) The Comprasnet & SIASG Architecture

  14. Windows Architecture The Comprasnet & SIASG Architecture

  15. SITE TRONCO INTERNET INTERNET Windows Architecture INTELLIGENT WEB BALANCING + EXCLUSIVE ZDM COMPRASNET FIREWALL ROTEADOR DE BORDA ZDM COMPRASNET BALANCEAMENTO DE CARGA + CONCENTRAÇÃO LAN Legenda SERVIDORES BANCO DE DADOS Gigabit Ethernet - 1000 Mbps Sentido comunicação usuários SERVIDORES WEB - COMPRASNET.GOV.BR Sentido comunicação web - BDs The Comprasnet & SIASG Architecture

  16. Linux Environment The Comprasnet & SIASG Architecture

  17. Mainframe Environment The Comprasnet & SIASG Architecture

  18. Infrastructure The Comprasnet & SIASG Architecture

  19. Infrastructure The Comprasnet & SIASG Architecture

  20. Technology High Availability Database Cluster File server cluster Load balance (CSS) Hardware Blades Rack Storage High Availability High speed Raid Lan Free Backup Softwares SQL Server PostgreSQL Windows Linux RH The Comprasnet & SIASG Architecture

  21. Monitoring The Comprasnet & SIASG Architecture

  22. Monitoring The Comprasnet & SIASG Architecture

  23. Customer Services Central SERPRO –SERPRO Services Central (24 X 07) 1st level 2nd level – specialized customer services • 0800 Exclusive Line - 0800 978 2329 • Access viaWEB Form • Access viae-mail: css.serpro@serpro.gov.br The Comprasnet & SIASG Architecture

  24. Services Central The Comprasnet & SIASG Architecture

  25. The MSW, known as The Robot, works on Linux platform in both internet and intranet environments, showing the following alerts: Incident Management Service available Connecting Ocasional error (unstable situation) Frequent error (critical situation) The Comprasnet & SIASG Architecture

  26. Service Level Agreement Management (SLA) • Daily monitoring of SLA. • Coordination of the virtual Situation Room – interaction w/ Operations and Development to solve highly critical incidents. • Management Reports. • Coordination Situation Room/Command center. • Support to the implementation of new services. The Comprasnet & SIASG Architecture

  27. Service Level Agreement Management (SLA) • SLA per architecture • Supported users and transactions volume • Service availability • Technical support availability • Incident recovery • Load Balance, Cluster and servers quantity • Service center • Service desk community • Systems development and support • Training • Security management The Comprasnet & SIASG Architecture

  28. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Procurement Nowadays: • Mandatory use for Central government • Suppliers – must register; system keeps records of participation and compliance of taxes • Reverse auction (since 2000) • Live auction • Electronic auction • physical (live) paradigm • communication infrastructure

  29. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Quantity and value contracted, by type of tender – 2009 (USD)

  30. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Percentage of value contracted, by type of tender – 2009

  31. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Price Contracted, by item type and year – 2002 to 2009

  32. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Share on purchase values, by economic sector and year – 2002 to 2009, Jan-Dec

  33. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Annual Variation on buying processes of common goods and services, by type of tender¹ – 2002 to 2009 ¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid.

  34. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Annual Variation on buying values of common goods and services, by type of tender¹ – 2002 to 2009 ¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid.

  35. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology ABC Curve on buying values of material groups from the Reverse Electronic Auction –2009

  36. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology ABC Curve on buying values of services groups from the Reverse Electronic Auction – 2009

  37. OECD - Performance Indicators

  38. OECD - Performance Indicators

  39. OECD - Performance Indicators

  40. Procurement System SIAFI SUPPLIERS MATERIALS / SERVICES Procurement Datawarehouse COMMITMENT EXECUTION CONTRACT RESULTS / REGISTERED PRICES Public Session PUBLISHING TRANSFER TO OTHER SPHERES REVERSE ACTION

  41. Official Journal Government Procurement Publicity Official Press Adds at Adds at Reverse Auction Notice Adds at Adds at UASG / Purchases Units SIASG SIDEC Adds to Adds at E-mail Supplier Consults Auction Notices The Comprasnet & SIASG Architecture

  42. The Comprasnet Portal The Comprasnet & SIASG Architecture

  43. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Some Numbers

  44. Systems – Cronology: MINISTRY OF PLANNING Secretariat of Logistics and Information Technology • List of Suppliers (1995) • Material Catalog (1995) • Electronic Publication (1997) • Reverse Live Auction (2000) • Reverse Electronic Auction (2000) • Automatic Commitment (2001) • Other Systems Integration (2002) • Price Registration System (2002) (Framework contracts)‏ • Preferential treatment to small businesses (2006) • (*) IDB and IBRD accept Brazil´s electronic action (2007)

  45. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Perspectives: • Standardization and Scale • Green purchases • Changes in the Public Procurement Law: • Reverse Auction for works under USD 3.4 millions; • Use of IT in all types of tenders.

  46. Using Purchasing Power • In recent years, the Brazilian Government has used the purchasing power to promote public policies: • Supplementary act 123-2006 and Decree 6204-2007 – incentive to the recruitment of small businesses (exclusive auctions; preference criteria in the event of a tie). • Act 8248-1991 and Decree 7174-2010 – incentive to companies that invest in technology development in Brazil (preference criteria in the event of a tie). • Normative Instruction 1-2010 - define criterias to sustenability

  47. Gráfico MPEs Secretariat of Logistics and Information Technology Share on purchase values, by economic sector and year – 2002 to 2009, Jan-Dec

  48. MINISTRY OF PLANNING Lessons Learned: • It is important to start gradually (virtuous circle) • People are the most important value • You must have political support

  49. MINISTRY OF PLANNING “Electronic Procurement is not a PANACEA”; “it is an incremental process”. “Every journey begins with the first step”, … …but “it’s easier when you know a good way”

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