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Electronic Procurement the Experience of the Brazilian Federal Government

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Electronic Procurement the Experience of the Brazilian Federal Government. Marcos Ozorio de Almeida Secretariat for Logistics and Information Technology. Ministry of Planning, Budget and Management. Federal Government Guidelines. Less red tape Efficient processes Standard procedures

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slide1

Electronic Procurement

the Experience of the Brazilian Federal Government

Marcos Ozorio de Almeida

Secretariat for Logistics and Information Technology

Ministry of Planning,

Budget and Management

slide2

Federal GovernmentGuidelines

  • Less red tape
  • Efficient processes
  • Standard procedures
  • Support information tools for the public manager
  • Managerial controls on expenditures
  • Increased Competition on tenders
  • Cost Reduction
  • Transparency
topics presentation
General Explanation on the General Services System – SISG, the SIASG IT support system and SIASG/COMPRASNET environment

Inverse Auction and Virtual Inverse Auction

Brazilian cooperation initiatives on government procurement

Topics Presentation
sisg and siasg it system and comprasnet
SISG and SIASG IT system and COMPRASNET
  • Modules
  • Characteristics
  • ITC & interactivity incorporation on the Internet
  • Managerial tools facilities
  • Transparency, accountability and social control characteristics
  • Some statistics on procurement of goods and services
  • Facilities offered
general services system sisg
General Services System- SISG

Other

Branches

SISG

States and Municipalities

information system
Information System

COMUNICA

SIDEC

SICAF

SISPP

SICON

SIASG

CATMAT

SISME

COMPRASNET

Federal Government

Procurement Portal

unified system for pre registration of suppliers sicaf
Unified System for Pre-registration of Suppliers - SICAF
  • Certifies fiscal compliance through on-line consultation (on-line checking of SRF, FGTS, PGFN, INSS registers)
  • Provides fast and unbureaucratic pre-registration of Federal Government suppliers
  • Allows pre-registration through internet “SICAFWeb”
  • 170 thousand registered suppliers
  • 2,000 new registrations a month
number of suppliers registered

Year

1997

1998

1999

2000

2001

2002

Number of Suppliers

61.113

84.701

106.563

130.384

150.600

170.113

Number of Suppliers Registered
types of suppliers registered

Type of Supplier

Professional

Micro Enterprises

Small Enterprises

Others

Total

Reg. until 1997

7.106

12.892

20.058

21.057

61.113

Reg. until 1998

10.367

19.195

26.895

28.244

84.701

Reg. until 1999

14.124

25.816

31.589

35.034

106.563

Reg. until 2000

17.811

32.712

36.407

43.454

130.384

Reg. until 2001

21.353

39.715

40.115

49.417

150.600

Reg. until 2002

24.956

45.869

44.211

55.077

170.113

Types of Suppliers Registered
electronic posting of purchases and contracts sidec
Electronic Posting of Purchases and Contracts - SIDEC
  • Electronic forwarding of documents for publication in the Federal Government’s Official Journal
  • Automatic posting of invitations to bid and tender results on the Internet
  • Allows searching and download of invitations to bid
slide11

Year

1997

1998

1999

2000

2001

2002

Of. Journal

660

1.958

7.779

11.307

12.457

13.379

Comprasnet

1.400

4.068

17.994

26.055

29.092

25.331

Tenders Announced by SIDEC

integrated price posting system sispp
Integrated Price Posting System - SISPP
  • Registers and stores in a data base the prices practiced by the Federal Administration in previous contracts
  • Provides public managers with a price reference, for assessment of procurement convenience
contract management system sicon
Contract Management System– SICON
  • Allows registration and financial monitoring of contracts undertaken within the Federal Administration
generation of draft awards system sisme
Generation of Draft Awards System - SISME
  • Automatic issuance of Award drafts, linked to financial execution of the National Treasury - SIAFI
  • Ensures that all Federal Administration contracting and purchases go through the System
supplies and services catalog catmat
Supplies and Services Catalog - CATMAT
  • Defines specifications and quality standards for supplies and services purchased by the Government, adopting the Federal Supply Classification criteria.
  • 45 thousand supply items already catalogued, organized into 13 thousand supply lines and 2 thousand service lines
management information
Management Information
  • Data warehouse – Aggregated data on government purchases for monitoring of indicators.
  • Comprasnet Bulletin – monthly statistical information on current expenditures
www comprasnet gov br

Federal Government

Procurement Portal

CORPORATE

SYSTEMS

SIAFI

SIASG

SUPPLIERS

MANAGEMENT

UNITS

COMPRASNET

SOCIETY

STN

SRF

PGFN

INSS

FGTS

NAT. PRESS

www.comprasnet.gov.br
some data on siasg comprasnet in 2001
Some data on SIASG/ Comprasnet in 2001
  • Accesses on the Portal: 2,400,000 (average monthly – 300,000)
  • Tenders posted: 29,092 (in 2001)
  • Suppliers registered: 170,000 (December 2002)
  • Subscribers: > 40,000 suppliers (September 2002)
  • Tenders published: 160 a day (average of 2002)
  • Total tenders published in 2001: 41,549
information and services available at comprasnet
Information and Services available at COMPRASNET
  • Public access through the Internet
  • Linked to www.e.gov.br (Government Network)
  • Electronic inverse bidding
  • Live inverse bidding
  • Electronic Price Quoting
  • Price of purchase registration
  • Publications and legislation
  • Complete bidding documents
  • Tender announcements
information and services available at comprasnet21
Information and services available at COMPRASNET
  • Tender results
  • Contract statements
  • SICAF Payment Form
  • E-mail by interest profile/Preference Lists
  • Specialized forum
  • Payment gateway
examples of transparency and social control
Examples of Transparency and Social Control
  • Electronic Price Quoting (e-shopping)
  • Tender Announcements
  • Inverse Auctions Agenda
  • Inverse Auctions Underway
  • Inverse Auctions Results: Aid Memoirs
legal framework
Legal Framework
  • Law nº 8.666, 1993
  • Provisional Measure n.º 2.026, de 4/5/2000
  • Decree nº 3.555, de 8 of August of 2000
  • Decree nº 3.693, de 2 of December of 2000
  • Decree nº 3.697, de 21 of December of 2000
  • Decree nº 3.784, de 6 of April of 2001
  • Law nº 10.520, de 17 of July of 2002
inverse auction and virtual inverse auction
Inverse AuctionandVirtual Inverse Auction
  • Background information on the adoption of the new mode of procurement
  • Operational procedures
  • Impacts of the use of the reverse auction
slide34

Advantages of the Inverse

Auction

  • Increased competition
  • Ease of use
  • Transparency and Social Control Guarantied
  • Increased participation opportunities
  • Use of new technologies
inverse auction
Inverse Auction
  • New tendering modality, introduced in August 2000
  • Allows direct confrontation between suppliers
  • Successive bids are made until a winner is announced
  • There are two forms:
    • Live inverse bidding
    • Electronic inverse bidding
inverse auction use

COMMON SERVICES

  • Cleaning, security and maintenance
  • Renting and maintenance of equipment
  • Meal voucher
  • Telephony
  • Transport
  • Health insurance
  • COMMON GOODS
  • Office supplies
  • Furniture
  • General appliances
  • Equipment
  • Fuels and lubricants
  • Microcomputers
Inverse Auction Use
  • Procurement of “common goods and services”
  • Performance and quality standards objectively defined in invitation for bid

EXAMPLES

electronic inverse auction
Electronic Inverse Auction

STAGES

  • I - Announcement
  • II - Qualification
  • III - Registration of proposals
  • IV - Presentation of bids
  • V - Award
ii qualification
II - QUALIFICATION
  • Interested suppliers are previously qualified by the administrator of the electronic inverse auction system
  • They receive access codes that allow participation in any reverse auction
iii registration of proposals
III - REGISTRATION OF PROPOSALS
  • Bidders make their price proposals through the Internet, on the day and time defined on the Invitation to Bid
  • the inverse auction begins with the opening of the proposals
iv presentation of bids
IV - PRESENTATION OF BIDS
  • Bidders can make their bids on the Internet
  • the system only accepts prices that are lower than the lowest initial proposal or the previous bid
  • the bidding stage may be concluded in two ways:

1. Randomly

2. Upon the reverse auctioneer\'s

decision

v award
V - AWARD
  • The winner is announced immediately on the electronic system (Aid Memoirs of the session)
  • the winner must prove eligibility to supply to the Federal Government
  • the system posts the results of all approved reverse auctions
impacts of the inverse auction
Impacts of the Inverse Auction
  • Total expenditure on procurement of goods and services: R$ 14,2 (US$ 5.7) billion/year (2002 – US$ 1.00 x R$ 2,50)
  • Out of this total, 20% has been procured by means of inverse auctions - amounting to R$ 3,1 (US$ 1.24) billion/year
  • Estimated direct economy in 20 % of the expenditures, i.e. R$ 620 (US$ 248) million/year
impacts of the inverse auction77
Impacts of the Inverse Auction
  • Number of Inverse Auctions: until December of 2002 - 8,550
  • Value of goods and services acquired: R$ 1,953 billion (US$ 781.2 million)
inverse auctions awarded until august of 2002

Year

Type of Auction

Numbar of Auctions

Value in R$

2000

Live

81

29.140.348,09

Electronic

1

67.120,00

2001

Live

2,236

786.556.105,00

Electronic

63

8.687.286,96

2002

Live

5,861

1,071,934,336.28

Electronic

308

56,417,596.69

Total

8,550

1.952.802.793,83

Inverse Auctions Awarded:until August of 2002*

Source: Monthly COMPRASNET Statistical Bulletin

impacts of the inverse auction81
Impacts of the Inverse Auction
  • The purchases by means of the reverse auction may reach 40 % of the total contracts undertaken by means of competitive bidding (around R$ 5.7/ US$ 2.3 billion a year)
impacts of the inverse auction82
Impacts of the Inverse Auction
  • Increased amount of purchases made under competitive modalities
  • More transparency and opportunities to participate
  • More agile and non bureaucratic procedures
  • Suppliers pre-register only once
  • Reduction in the time required for Qualification of suppliers
  • Less time required for tendering
  • Electronic posting of tender with ample access by the interested parties
  • Staff freed for more complex activities
inverse auction in the states
Inverse Auction in the States
  • Law 10.520/2002 has extended use of the inverse auction by states and municipalities
  • Several States (São Paulo, Bahia, Pernambuco, Mato Grosso etc.) developed, bought or entered into partnerships of their own inverse auction systems
cooperation initiatives underway
Cooperation initiatives Underway
  • Multilateral initiatives (World Bank, IADB, OAS)
  • Bilateral initiatives (Governments of Bolivia, Peru, Colombia, Nicaragua, Paraguay, Argentina, India etc.)
  • States and municipalities
  • National & international recognition (COMDEX, CONIP, Hélio Beltrão Prize European Union e-gov Best Practice, UN-UNOPS Fair of July 2001, B2B Best Practices in e-commerce.)
possible cooperation initiatives
Possible Cooperation initiatives
  • Planning
  • Legislation
  • Human Resources Training
  • IT Information systems modelling
  • Experience interchange
  • Standards for procurement procedures and bidding documents and regulations
slide87
Marcos Ozorio de Almeida

Secretariat of Logistics and Information Technology

Ministry of Planning, Budget and Management

Tel: 55 61 313-1400

Fax: 55 61 322-1393

E-mail: [email protected]

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