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Innovating Public Procurement through Korea ON-line E-Procurement System. April 2010 Istanbul, Turkey Key-Man Lee Director General Public Procurement Service Republic of Korea. Contents. Korea ON-line E-Procurement System (KONEPS) Impacts of KONEPS 3. Success Factors

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

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Innovating public procurement through korea on line e procurement system

Innovating Public Procurement through

Korea ON-line E-Procurement System

April 2010

Istanbul, Turkey

Key-Man Lee

Director General

Public Procurement Service

Republic of Korea


Innovating public procurement through korea on line e procurement system

Contents

  • Korea ON-line E-Procurement System (KONEPS)

  • Impacts of KONEPS

  • 3. Success Factors

  • 4. Global Recognition and International Cooperation


Innovating public procurement through korea on line e procurement system

1. Korea ON-line E-Procurement System (KONEPS)


Innovating public procurement through korea on line e procurement system

Public Procurement System in Korea

Combination of Centralized and Decentralized Procurement

  • Medium to large scale procurement for central government agencies : handled by Public Procurement Service (PPS)

  • Small scale procurement: handled by each government agency

  • Local governments and public enterprises: autonomous procurement

Increasing SME’s Market Opportunities

Public Procurement Service (PPS)

  • PPS is the central government procurement agency of Korea under the Ministry of Strategy and Finance

  • Total procurement volume of 45 billion USD in 2009


Innovating public procurement through korea on line e procurement system

Korea ON-line E-Procurement System (KONEPS)

KONEPS

  • Government-wide e-Procurement System

  • Developed and operated by PPS

  • Commonly used by all public agencies for procuring goods, services, and construction works

KONEPS


Innovating public procurement through korea on line e procurement system

Problems Prior to KONEPS


Innovating public procurement through korea on line e procurement system

Innovation through e-Procurement


Innovating public procurement through korea on line e procurement system

Characteristics of KONEPS

Single Window for Public Procurement

  • Publication of all public tender notices and related information at a single website

  • Bidders can participate in all public biddings after one-time registration


Innovating public procurement through korea on line e procurement system

Characteristics of KONEPS

Integration of Entire Procurement Work

  • Entire procurement processes from supplier registration, bidding through to payment are conducted via the internet

One-stop Service

  • 160 types of documents handled online through the data exchange linkage with 100 other public sector & private sector information systems


Innovating public procurement through korea on line e procurement system

41,000 Public Entities

191,000 Registered Suppliers

Transactions through KONEPS

$86 bn

$63 bn

$56 bn

In 2009, over 70% of Korea’s total public procurement (122 billion USD) was conducted through KONEPS

2008

2009

2007

Total Volume of Transactions

Conducted via KONEPS


Innovating public procurement through korea on line e procurement system

e-Biddings through KONEPS

235,178

207,960

213,539

207,633

23.2

20.9

20.5

20.8

2006

2007

2008

2009

Number of e-Biddings

Total number of bid participants (unit: million)


Innovating public procurement through korea on line e procurement system

2. Impacts of KONEPS


Innovating public procurement through korea on line e procurement system

Saves US$8.1B worth of transaction costs annually

Improves transparency in doing business with the government

Enhancing Efficiency and Transparency

  • Reduction of manual work & contract-related papers, time-saving, etc

  • Minimized face-to-face contacts

  • All the information is published on-line on a real time basis


Innovating public procurement through korea on line e procurement system

Work Productivity has risen 5 fold

'08

'08

'08

Improved Productivity


Innovating public procurement through korea on line e procurement system

3. Success Factors


Innovating public procurement through korea on line e procurement system

Strong will of the government for reform

Rich experiences from a long history of procurement

The world-class Internet infrastructure already in place

Application of systematic BPR/ISP and new technologies

Training and education of users

Success Factors

  • Establishment of ‘special committee for e-government’

  • 93% of Korean households use broadband Internet network

  • Improvement of purchasing procedures prior to system development

  • Adoption of new technologies (e-signature, encryption, e-documents)

  • into KONEPS system

  • PPS Training Center, On-line customer support and CBT Program


Innovating public procurement through korea on line e procurement system

4. Global Recognition and International Cooperation


Innovating public procurement through korea on line e procurement system

Global Recognition

International Recognition for KONEPS

2004

2003

2005

KONEPS procedures

reflected in

international standards

1st UN

Public Service Award

“No further action further action required” OECD

2007

2006

E-ASIA AWARD

Global IT Excellence Award

from WITSA


Innovating public procurement through korea on line e procurement system

International Cooperation

Support for System Implementation

  • Support for system implementation in Vietnam (pilot system) and Costa Rica(full implementation) using KONEPS modules

Feasibility Studies for

e-Procurement Implementation

e-Procurement Workshops

  • E-Procurement Workshops with ADB, UN,the World Bank

  • Training Program for countries interestedin e-Procurement implementation

  • Vietnam, Pakistan (2005)

  • Mongol, Georgia (2007)

  • Costa Rica, Uzbekistan, Tunisia (2008,2009)


Innovating public procurement through korea on line e procurement system

THANK YOU


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