Electronic Government Procurement E-GP Concept to Reality

1. Electronic Government Procurement (E-GP)Concept to Reality

2. What legislation is required? Can e-GP work where there is poor infrastructure? Should e-GP be centralised? Is e-GP centralisation of procurement? Are there security risks? What about the suppliers? Does e-GP really save money? Where to start? Country Questions

3. Implementation

4. It is an iterative process and the model that you adopt needs to be the Kuwait model. It is an iterative process and the model that you adopt needs to be the Kuwait model.

6. The functionality, business design and implementation of an e-marketplace for the public sector therefore comes in two parts and is guided by the structure of government business dealings – especially by the division between simple and complex procurement. It is common for governments around the world to differentiate simple from complex procurement and the rules, policies and systems associated with these. This differentiation occurs partly for reasons of enhancing transparency for larger acquisitions but also it is usually the case that larger acquisitions are not off-the-shelf purchases and require processes of specification and bidding. The first part is e-tendering & contract management, which relates to high-value, low-volume procurement. The second part is e-purchasing which relates to low-value, high-volume procurement, typically these purchases will be off-the-shelf catalogue items such as office supplies. The fastest and most effective way for government to initiate its e-procurement strategy is to begin with high value / low volume complex procurement or e-tendering. This requires minimal supplier capability and yet adds value for suppliers at little or no cost. The functionality for e-tendering does not require substantial re-engineering of government systems or bureaucracy. The functionality, business design and implementation of an e-marketplace for the public sector therefore comes in two parts and is guided by the structure of government business dealings – especially by the division between simple and complex procurement. It is common for governments around the world to differentiate simple from complex procurement and the rules, policies and systems associated with these. This differentiation occurs partly for reasons of enhancing transparency for larger acquisitions but also it is usually the case that larger acquisitions are not off-the-shelf purchases and require processes of specification and bidding. The first part is e-tendering & contract management, which relates to high-value, low-volume procurement. The second part is e-purchasing which relates to low-value, high-volume procurement, typically these purchases will be off-the-shelf catalogue items such as office supplies. The fastest and most effective way for government to initiate its e-procurement strategy is to begin with high value / low volume complex procurement or e-tendering. This requires minimal supplier capability and yet adds value for suppliers at little or no cost. The functionality for e-tendering does not require substantial re-engineering of government systems or bureaucracy.

7. E-Bidding Systems Procurement Portal Single Window All policies and regulations Audit trails, access logs Downloads tender documents and drawings Uploads documents and drawings Request a hardcopy Search facilities Early tender advice Electronic lodgment Tenders Seek facility Pending Award, tracking Awarded contract information Archived contracts information Supplier / Buyer Registration Industry e-activation / competition The basic functionality for e-tendering includes: Tender e-Notice Board: a daily updated online tendering information service, available 24 hours a day, 7 days a week. The e-tender service also needs to publish information about recent contract awards. Industry and Regional Search capabilities which provide businesses with intelligent search tools Online Downloading of tender documents, enabling suppliers to obtain tender documents online. Early Tender Advice, providing notice of forthcoming tenders several months in advance. Tender Tracking to allow progress of a tender submission to be monitored by business. Tender Seek allows for reverse searching whereby potential suppliers are automatically notified of relevant tender postings. Electronic Tender Lodgement, a high security system for submitting bids online. Drawings Online, enabling a supplier to obtain construction drawings and other technical plans over the internet. A Central Supplier Registry that establishes links between a buyer and suppliers and underpins the e procurement trading environment. This e-tender service can be expected to have profound results in a short time frame with relatively modest investment. Experience has shown that the e-tender service, complemented by a communication strategy, can be expected to activate thousands of small businesses into the new technologies in less than 12 months with minor government expenditure. This service generally has required no changes to regulations or legislation. However to promote rapid take-up government may mandate the use of the service by government bureaucracy. An e-tendering service can be assessed as a success if more than half of all tender documentation and more than half of all tenders submitted are delivered electronically through the internet. E-tendering can be a powerful vehicle for industry activation into online technologies. The most technically demanding component of this service is Electronic tender Lodgement which has very strong security requirements.The basic functionality for e-tendering includes: Tender e-Notice Board: a daily updated online tendering information service, available 24 hours a day, 7 days a week. The e-tender service also needs to publish information about recent contract awards. Industry and Regional Search capabilities which provide businesses with intelligent search tools Online Downloading of tender documents, enabling suppliers to obtain tender documents online. Early Tender Advice, providing notice of forthcoming tenders several months in advance. Tender Tracking to allow progress of a tender submission to be monitored by business. Tender Seek allows for reverse searching whereby potential suppliers are automatically notified of relevant tender postings. Electronic Tender Lodgement, a high security system for submitting bids online. Drawings Online, enabling a supplier to obtain construction drawings and other technical plans over the internet. A Central Supplier Registry that establishes links between a buyer and suppliers and underpins the e procurement trading environment. This e-tender service can be expected to have profound results in a short time frame with relatively modest investment. Experience has shown that the e-tender service, complemented by a communication strategy, can be expected to activate thousands of small businesses into the new technologies in less than 12 months with minor government expenditure. This service generally has required no changes to regulations or legislation. However to promote rapid take-up government may mandate the use of the service by government bureaucracy. An e-tendering service can be assessed as a success if more than half of all tender documentation and more than half of all tenders submitted are delivered electronically through the internet. E-tendering can be a powerful vehicle for industry activation into online technologies. The most technically demanding component of this service is Electronic tender Lodgement which has very strong security requirements.

10. Online Contract Development The functionality of online contract management includes document and records management, systems integration, best practice guidelines, and publishing and reporting. This system is aimed at strengthening contract management governance, including payment schedules for complex works, checklists and deadline bring-ups. These services have achieved significant savings in time and money for both governments and industry and achieved unprecedented levels of transparency and accountability. More than this, the E-tendering service has proved to be a catalyst for organisational change and further private investment in technology and technological literacy. Research shows that many small business owners have become Internet-enabled specifically to access these E-tendering services. The functionality of online contract management includes document and records management, systems integration, best practice guidelines, and publishing and reporting. This system is aimed at strengthening contract management governance, including payment schedules for complex works, checklists and deadline bring-ups. These services have achieved significant savings in time and money for both governments and industry and achieved unprecedented levels of transparency and accountability. More than this, the E-tendering service has proved to be a catalyst for organisational change and further private investment in technology and technological literacy. Research shows that many small business owners have become Internet-enabled specifically to access these E-tendering services.

11. Security Infrastructure for E-Bids The security requirements of online tender lodgment are very strong partly to instill confidence by business. These requirements should engage date and time-locks at high levels of encryption subject to independent audit and public openings if required. The security requirements of online tender lodgment are very strong partly to instill confidence by business. These requirements should engage date and time-locks at high levels of encryption subject to independent audit and public openings if required.

12. Financial Integration

13. Legislation, Digital Signatures& Standards

14. Cyber Legislation and Procurement

15. Legislation

16. I now would like to turn to the all-important issue of standards. To illustrate the significance of this issue I remind you of the space science probe the Mars Polar Lander – Nov 10 1999 which, at great cost, was lost without providing any information at all. The fault which led to this disaster was caused by satellite engineers confusing metric and imperial measurements - a simple lack of standards. Other international standards include SWIFT which enables banking to take place and ISA which is essential for air travel. Similarly I have seen a small business maintaining five separate systems with five licensing arrangements and five catalogues to manage five major clients online. In these circumstances the lack of standards means that the costs to businesses for online technologies can easily exceed the benefits, making it very difficult to roll online technologies throughout the economy. It is the role of standards to resolve this issue, so that a supplier only needs to develop one catalogue and have one platform in order to deal online with numerous other entities using a variety of systems. I now would like to turn to the all-important issue of standards. To illustrate the significance of this issue I remind you of the space science probe the Mars Polar Lander – Nov 10 1999 which, at great cost, was lost without providing any information at all. The fault which led to this disaster was caused by satellite engineers confusing metric and imperial measurements - a simple lack of standards. Other international standards include SWIFT which enables banking to take place and ISA which is essential for air travel. Similarly I have seen a small business maintaining five separate systems with five licensing arrangements and five catalogues to manage five major clients online. In these circumstances the lack of standards means that the costs to businesses for online technologies can easily exceed the benefits, making it very difficult to roll online technologies throughout the economy. It is the role of standards to resolve this issue, so that a supplier only needs to develop one catalogue and have one platform in order to deal online with numerous other entities using a variety of systems.

17. e-Procurement Separate PortalsMultiple Standards

18. Lessons

19. Electronic Government Procurement (E-GP)Concept to Reality