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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. 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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  1. 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

  2. Contents • Korea ON-line E-Procurement System (KONEPS) • Impacts of KONEPS • 3. Success Factors • 4. Global Recognition and International Cooperation

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

  4. 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

  5. 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

  6. Problems Prior to KONEPS

  7. Innovation through e-Procurement

  8. 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

  9. 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

  10. 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

  11. 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)

  12. 2. Impacts of KONEPS

  13. 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

  14. Work Productivity has risen 5 fold '08 '08 '08 Improved Productivity

  15. 3. Success Factors

  16. 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

  17. 4. Global Recognition and International Cooperation

  18. 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

  19. 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)

  20. THANK YOU

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