Asia Development Bank e-GP Conference 21 November 2011, Bali, Indonesia

E-Procurement as a Tool for Transparency and Efficiency in Public Service Delivery

Supporting U.N. Member States by Disseminating the MDBs Toolkit and E-Procurement assets
Jonas Rabinovitch United Nations Department of Economic and Social Affairs Division for Public Administration and Development Management DPADM

Governance
A Broader Concept than Government

State

Creates Enabling Political and Legal Environment; Protects rights; Facilitates Services

Generates investments, jobs, income, goods and services, growth

Private
Sector

Advocates and facilitates political and social interaction/ dialogue

Civil Society

United Nations Public Administration Country Studies (UNPACS) www.unpan.org

Government Institutional and Human Resource Development Electronic and Mobile Government

Citizen Engagement in Managing Development Programmes

Open Government Data

UN E-Government Survey and UN Public Sector Report Two publications that can help set the context for E-Procurement
UN E-Government Survey World Public Sector Report - Reconstructing Public Administration after Conflict: Challenges, Practices and Lessons Learned in 2010

Overview
E-Procurement Consultation Seoul March 2011
Merits x Challenges Misconceptions x Realities Lessons Learned

Expert Group Meeting - New York October 2011

Background and Review E-Procurement as a Tool for Transparency and Efficiency in Public Service Delivery A Knowledge Guide on E-Procurement

http://www.UNPAN.org/DPADM/

Seoul Consultation in March 2011

15 professionals from 6 countries: Korea, China, Italy, Japan, Mexico, and the Philippines International organizations: The Asian Development Bank, The World Bank, Pan-European Public Procurement OnLine of European Commission, and DPADM-UNDESA and UNPOG.

http://www.UNPAN.org/DPADM/

Merits and Challenges 1

Merits
Transparency Audit trail, Traceability, Diminish Corruption
Value for Money Reduced Procurement Costs, Facilitates Online Catalogue Purchases, Improved Market Intelligence

Challenges
Lack of Awareness and Capacity Resistance to Change to Convert to E-GP Internet Readiness Digital Divide, Internet not Mature for E-Commerce Features E-Signatures Cross-Border and Domestic Recognition

http://www.UNPAN.org/DPADM/

Merits and Challenges 2

Merits
SMEs participation Improved Market Access for SMEs, Reduced Marketing Costs Work Efficiency Reduced Disputes, Improved Streamlining and Standardization, Reduced Procurement Time, Better Regulation Enforcement

Challenges
Lack of Intra-Gov. Coordination Legislation and Coordination Difficulties, Too Many Platforms jeopardize long-term goals
Ineffective Implementation Improper BPR, Digitalization Without Procurement Reform

http://www.UNPAN.org/DPADM/

Misconceptions and Reality 1

Misconceptions
E-GP is an ICT project
E-GP is only about Procurement

Reality
E-GP should be led by Procurement Experts
If Governance is not in place, effective E-Procurement may not succeed

E-GP is a digital replication of traditional procurement

E-GP is re-engineering: Procurement Reform

http://www.UNPAN.org/DPADM/

Misconceptions and Reality 2

Misconceptions
E-GP will eradicate corruption

Reality
Enhanced Traceability and Data Analysis, BUT it may lead to new forms of corruption by allowing illicit access to bidding data and manipulation of results
Does not require heavy legislation; empirical data does not confirm job losses

Requires heavy legislation and causes loss of jobs

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Lessons Learned 1
1) Harvest the low-hanging fruits first: embarking on the most burdensome components of e-GP, such as e-Ordering, eCatalog, should be considered after harvesting the more immediately achievable components including e-Notice and e-Submission. 2) At an initial stage, it is strategically wise to limit the project scope to components that require a manageable level of change management and organizational capacity.

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Lessons Learned 2
3) Dont forget suppliers: e-GP is about the government but also about the suppliers. The system needs to be in harmony with the business practices and technologies used in the private sector. 4) Don't set unnecessary barriers for the participants by implementing e-Procurement: one of the critical success factor of e-Procurement is to get the buy-in from the private sector. Without the overarching power, nothing will be solved.

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Lessons Learned 3
5) E-Procurement requires solid political will: A commonly recognized requirement for a successful e-Procurement adoption is a strong commitment and leadership in the political dimension. As e-Procurement brings cross-governmental impacts on the purchasing behavior of a large number of contracting authorities, its implementation requires a leading agency capable of inter-ministerial coordination and the overarching power from the top political level.

http://www.UNPAN.org/DPADM/

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Lessons Learned 4
6) Procurement regime: Is a mandatory use strategy effective for successful conversion to e-Procurement ? The discussion yielded divided opinions. Korea, the Philippines, and Mexico presented positive opinions on the mandatory use strategy. Experts from the WB and ADB expressed concerns for possible discriminatory effect that may be created by the mandatory use strategy, since many remote areas in developing countries do not have the access to the internet. As possible solutions for this concern, they recommended the establishment of regional internet access points, as well as leaving the option of paper bid submission for suppliers.

http://www.UNPAN.org/DPADM/

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Conclusions 1
1) Some issues raised in the Meeting were new even among e-Procurement professionals, such as the issue of illicit lending and borrowing of e- authentication certificates needed for bidders to enter the system. 2) It also brought to attention a few most commonly committed mistakes in planning for e-Procurement adoption, which will constitute a part of core framework for e-Procurement to be developed in time.

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Conclusions 2
3) The Meeting identified the obstacles that hinders the dissemination of e-Procurement, and proposed potential solutions. For example, it addressed the similarities and differences in adopting e-Procurement under a decentralized procurement regime or a central procurement regime. 4) Recognized the need for grouping countries by current e-Procurement status, and developing roadmaps accordingly.

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Conclusions 3
5) Lastly, the Meeting provided a platform for cooperation among national and international organizations, including UN, MDBs, EC, and individual countries. The participants expressed their willingness to support the UN Public Administration Programme (DPADM, UNPOG) for undertaking future e-procurement activities, including the sharing of survey results, and knowledge products.

http://www.UNPAN.org/DPADM/

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EGM Expert Group Meeting

Multilateral Development Banks: AFDB, IADB, World Bank, Regrets from ADB PEPPOL (European Union) Italy Korea USA

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Stakeholders (MDBs, National Govs, Other Agencies )

National Policy Context - E-Gov Development

Knowledge Guide Conceptual Framework

Pre Award
Key Activities
Public Purchases Strategy, Feasibility, Selection of Suppliers, Data Validation

Award
Contract Definition

Post Award
Contract Management, Evaluation of Results

Operational and Implementation

Purchasing strategies, Feasibility Analysis for Public Acquisitions, Public Contracting of Services and Data Validation

Terminology for Public Purchases, Implementation Applications, References for Suppliers

Contract Management and ICT, Dissemination, Communication, Verification of Results Qualitative Models and References, Examples of Best Practices Applied to Contracts

References and Partnerships

Examples to be Collected

Examples to be collected

Best Practices and Standards

Examples to be collected

Examples to be collected

Examples to be collected

Content Management System (PACS)