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Innovating Public Procurement through Korea ON-line E-Procurement System

Innovating Public Procurement through Korea ON-line E-Procurement System. Global Forum, Washington D.C. October 2010. Chong-suk Kang Public Procurement Service. Functions of KONEPS. Single Window for Public Procurement.

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Innovating Public Procurement through Korea ON-line E-Procurement System

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  1. Innovating Public Procurement through Korea ON-line E-Procurement System Global Forum, Washington D.C. October 2010 Chong-suk Kang Public Procurement Service

  2. Functions of KONEPS Single Window for Public Procurement • All public tender notices and related information are available at a single website • Bidders can participate in all public biddings after one-time registration Integration of Entire Procurement Procedures • Entire process ranging from vendor registration, tender notice, bidding, contract awarding through payment • Easily issue purchase order at the Online Shopping Mall One-stop Service • 166 types of documents are handled online thru the data exchange linkage with 100 other information systems

  3. Sub-systems of KONEPS KONEPS processes the entire procurement procedures through the 4 major sub-systems: e-bidding, e-contracting, e-payment & the online shopping mall e-Contracting e-Bidding Contract Registration Composition and Sealing of Contracts Contract Review Tender notice / Bidding Price Assessment Evaluation / Analysis KONEPS e-Payment Online Shopping Mall E-Payment Expenditure Mgmt. Fee Management Product Registration E-Catalogue Product Search Online Purchase Order

  4. Enhanced efficiency and transparency Saves $8.1 bil. of transaction costs annually Creates transparent doing-business environments Impacts of KONEPS • $6.6 bil. on the suppliers’ side & $1.5 bil. in the public sector • Reduction of physical contacts, contract-related documents, and etc • Savings of labor time for searching for tender information • Additionally, budget savings from increased competition • Minimizes face-to-face contacts • All the information are gathered on a real time basis • The number of bid participants has increased by 300%

  5. Extended coverage & increased productivity Covers public procurement more broadly Increases productivity by 500% Impacts of KONEPS • More than 70% of total public procurement is conducted thru KONEPS • $122 bil. (Total PP) > $86 bil. (KONEPS) > $42.7 bil.(PPS) • Barometer of productivity = No. of contracts / No. of employees • Contracts per employee : 179 (yr. 1997) → 890 (yr. 2008)

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