Mainstreaming Electronic Government Procurement E-GP Dr Paul Schapper

Mainstreaming Electronic Government Procurement (E-GP) Dr Paul Schapper Curtin University of Technology Paul. schapper@iinet. au

What is e-GP? Ø An e-GP implementation strategy is a management and reform programme Ø E-GP is not a software programme – if it was it would already be an icon on Windows XP

Some Questions Ø Does e-GP really improve governance and reduce corruption? Ø Does e-GP really save money and add value?

Economic Significance of E-GP Value of Government Procurement – 20% of GDP E-GP reduces transaction costs by 25%-50% GDP E-GP reduces costs of goods and services by 5%-25% Cost of transactions – 45% of GDP

Online Contract Management Designed to allow users to define, plan, develop, track and manage the contracting process Best Practice Guidelines & Checklists Templates and Case Studies Office systems Tendering Information & Process Management Records Library E-Tender Board

Logical Procurement Register Model Supplier Register Supplier Special Detail Supplier Detail Register Product/Services Register Participation Event Contracts Register Account Transaction Register (as appropriate) Buyer Details Register Buying Rules

Financial Integration Process mapping Existing Banking Infrastructure E -P R O C U R E ME N T Finance management centric High set up & maintenance cost F I N A N C I A L S Y S T E MS Legacy Systems Purchasing / Commerce Cards Web systems Market centric Open standards based

Online Services - Concepts and Reality Classifies products in relation to each other Uniquely identifies products Ordinal / Hierarchical Nominal / Unique Management analysis Tracking information Market research Audit Supports e-market catalogues Supports in-house book-keeping Supports common language market search Supports common language inventory control Identification Codes Classification Codes Catalogues

e-Procurement Strategy Standardised Portal Businesses Value Departments Governments Added Services Department A Department B Department C Policies & Legislation Tender Advertising High Value, Low Volume Procurement Queries & Advice (E-TENDERS) Email Alerts Business A Business B Business C Electronic Tender Lodgement Department D Department E Low Value, High Volume Catalogues Procurement (E-PURCHASING) Registries Business D Business E Government Electronic Market Department F Web Based Contract Management E-Management Business F Department G Contract Development Business G

Online Services - Concepts and Reality e-Procurement Separate Portals Multiple Standards Departments E-GP Portals Businesses Department A www. Version A Business A Department B www. Version B Business B Department C www. Version C Business C Department D www. Version D Business D Department E www. Version E Business E Department F www. Version F Business F Department G www. Version G Business G

Requirements for B 2 G e-commerce Ø Compatible with BP Ø User friendly Ø Cost recovery Ø Transparent Ø Phased implementation Ø Connectivity - Internet cafes (legislation)

E-GP Implementation is a Reform Program Government & Institutional Leadership Management , Legislation & Policy E-GP STRATEGY Private Sector Activation Infrastructur e & Web Services Functionality & Standards

Typical Implementation Schedule Year 1 Year 2 Year 3 Analysis & Scoping Bulletin Board Results & Plans Auto Search ` Policies, Regs & Guides ` Standard Documentation & Templates ` Bid Documentation & Plans Bid Submissions ` Online Payments & Securities ` E-Contract Management - Construction ` Goods & Services Catalogues Price Models ` Purchase Orders & Information ` E-Transactions ` Reverse Auctions Enabling Strategies – Infrastructure Enhancement, Business / Gov Connectivity & Awareness, ` Legislation, HR. Policy, etcetera

Implementation Matrix Status Priority Resources Responsible Action Vision Essential 1 Leadership Minister Publish Mandate & Policy Essential 1 Policy Minister / ICT TF Document & resource Lead Agency Essential 1 Staff & Expertise CPU Career paths, Support Centre, etc Planning & Management Essential 2 Expertise CPU Implementation Plan Systems & Standards Essential 2 Expertise CPU / ICT TF Business Education & Training Essential 2 Staff / Expertise CPU / Agencies Develop programme Private Sector Essential 2 Liaison CPU / Agencies Road shows / Online Info Infrastructure & Web Essential 3 Policies / Funding ICT Task Force Telco policy Regs 3 Policy CPU Formulate ERegs Legislation & Regulation

The Lessons Learnt Ø. Vision and leadership Ø Commitment Ø Small Business friendly Ø Management not technology Ø Get right expertise Ø International standards based Ø Don’t map existing processes Ø Education and training are essential

Electronic Government Procurement (E-GP) Dr Paul Schapper Curtin University of Technology

Lessons

Five Challenges Ø Vision & leadership Ø Changing Government organization Ø Activating local businesses Ø Connectivity and Infrastructure Ø Standards, legislation & security

Which Path? Ø Ø Ø Ø Ø How to start? Where to start? E-Tendering? E-Reverse Auctions? E-Contract Management? E-Purchasing? Parallel Processes? Timeframes?

Basic Systems E-Tendering Information & reporting system E-Purchasing Management system also E-RA E-Management – Works & Supply Chain Online Contract Management

Phased Implementation Phase 1 Phase 2 Phase 3 a Information Service Tender Advertising Document Down-Loads Results Disclosure Bid Qualification Bid Up-Loads Bid Processing etc Contract Management Contract Development E-Tendering E-Contract Management Catalogue Purchasing Online Transactions Online Workflow Phase 3 b Online Bidding Reverse Auctions E-Purchasing

e-Procurement Framework Portal to e-Government Procurement Search & request info Single Buyer Registry Project Management Drawings Online Buyer fees Supplier fees Summary reports Inventory Data Warehouse & Reporting FMIS Core Online Contract Management Transaction reports Tender advert, lodge & award Goods & Services Supplier invoice & payment Supplier performance ETA Management Shopping trolley requisition Order approved / sent / accepted Receipt of goods / services Tende r Watch Form at RFQ & Reverse Auctions Program Development Construction Contract Management Buyer Profiles Single Supplier Registry Plan Contracted Suppliers Public Tendering Core Tender Development Contract Development Public Purchasing Government Contract Policy & Management The functionality is complex (but not excessively so) and there is more than one possible starting point