Government Procurement @ Your

Fingertips:
Strategic Framework of the World Bank

Knut Leipold
October 2003

October 2003

Table of Contents
1. e-GP Basics
Definition
Benefits
Key Success Factors

2.

e-GP Strategy of theWorld Bank

World Bank Procurement Policy
Strategic Framework

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e-Confusion

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Shared e-GP Definition

e-GP is the use of information technology (especially the
Internet) by governments in conducting their procurement
relationships with suppliers for the acquisition of works,
goods, and consultancy services required by the public
sector.
e-GP breaks down the physical barriers of space and time
and allows a more transparent and efficient information flow
and wider access to information and services.

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e-Tendering vs. e-Purchasing

e-Tendering:
A solution designed to electronically handle the process of
public tender for the acquisition of specialized works, goods,
and consulting services that are of high value and low
volume. Introduction can be phased and provides wide
exposure to e-GP at low incremental cost.
e-Purchasing:
A solution designed to electronically facilitate the acquisition
of low value and high volume standard goods and services.
Key components of the system tend to be complex and
require substantial system development.
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Functional Requirements
e-Tendering:
Disclosure

Download

Clarification

Upload

Opening

Tracking

e-Purchasing:
Best quotation
Pre-qualification

Reverse Auction
Catalogue

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Ordering &
Payment

Benefits
Transparency
Reduced corruption
Increased competition
Lower transaction costs and prices
Shorter procurement cycles
Improved quality

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Benefits & Beneficiaries

Government
Transparency

Anti-corruption
Increased number of suppliers
Better integration and interaction between governments
Professional procurement
monitoring/management
Higher quality of procurement
decisions and statistics
Political return from the public

Costs

Efficiency
Time

Supplier

Public

Increased fairness/competition
Improved access to govt. market

Access to public
procurement information
Monitor public expenditure information
Participation
Government accountability

Open the government market to

new suppliers
Stimulation of SME
participation
Improved access to public
procurement information
Government accountability

Lower prices/transaction costs

Staff reduction
Reduction in fiscal expenditure

Lower transaction costs

Staff reduction
Improved cash flow

Redistribution of fiscal

Simplification/elimination of
repetitive tasks
Communication anywhere/time
Shorter procurement cycle

Simplification/elimination of

Communication
anywhere/time

repetitive tasks
Communication anywhere/time
Shorter procurement cycle

October 2003

expenditure

Benefits (Examples)
By using the national education portal www.feonline.net in Great Britain, some 500 schools achieve price reductions
of up to 100 million British Pounds per year and time reduction of about 90% in order processing.
Source: Public E-Procurement, Gehrmann/Schinzer, 2002

With the phased introduction of the Government electronic Procurement System (GePS), Korea is able to save some
US$ 2.7 billion of all government procurement (US$ 17.1 billion) as compared to US$ 26 million investment. Between
1998 and 2002, staff of the Public Procurement Service PPS were reduced from 1,058 to 935, while the total
government procurement volume increased by some 30% (from US$ 12..8 billion to US$ 17.1 billion). Payments to
suppliers are electronically transferred which usually takes no longer than 4 hours.
Source: DRAFT Discussion Note, The World Bank, 2003

Romania uses a government-wide e-Procurement system bringing together about 1,000 public agencies and 8,000
suppliers. During the first 4 months of 2003, more than 60,000 transactions were completed. According to the Ministry
of Communications and Information Technology, the savings through this e-GP platform amount to some 22% (US$
35.5 million) of the volume of purchased goods and services (US$ 161.4 million).
Source: IDA, 2003
During the first three years of the procurement portal COMPRASNET, the Federal Government of Brazil spent about
US$ 7million on system development and maintenance. During the first two years of on-line reverse auction use, the
Federal Government is estimated to have saved up to US$ 1.5 million. While the normal procurement process takes
more than two months, the on-line reverse auction may be completed in less than 15 working days. The use of on-line
procurement has also increased the participation of small businesses in government supplies.
Source: http://www.egov4dev.org/brazeproc.htm, 2002

October 2003

Key Success Factors

Policy & Legal Framework
Enabling environment
e-GP strategy
Roles & Responsibilities
Flexibility

Human Resources
Awareness raising
Capacity building
Incentives
User help desk

Policy & Legal

Framework

Technology
Infrastructure
Compatibility & standards
Scalability & security
e-GP system ownership

Technology

Human
Resources
Government Leadership
Taking the drivers seat
Vision and goals
Collective commitment for change
Partnerships with private industry

Government
Leadership

Institutional Change
Institutional
Procurement process (BPR)
Organizational
Changestructures

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e-GP & World Bank Procurement Policy

Compatibility of e-GP with WB procurement policy
and goals:

Modernization, simplification
Economy & efficiency
Equal access
Encouragement of local industry
Transparency

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e-GP and Procurement Methods

E-Tendering

E-Purchasing

ICB

NCB

Shopping

Direct Contracting
1

Pre-qualification

Reverse Auctioning
100% price evaluation

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Strategic e-GP Framework

Awareness Raising

Capacity Building

Policy
&
Guidelines

Countrybased
work

Procurement
Operations
&
Monitoring

Harmonization

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Strategic e-GP Framework

Policy & Guidelines
Awareness Raising

Capacity Building

Harmonization

Simplification & modernization

Revision of guidelines for procurement
under IBRD Loans and IDA Credits and
Procurement
Policy
CountryOperations
for&selection of consultants
based
&
Assessment of e-GP
Guidelines
worksystems
Monitoring
e-GP guideline
Develop harmonized policies for the
use of e-GP in MDB-financed
procurement
Revision of harmonized SBD for
Goods

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Strategic e-GP Framework

Country-based work
Awareness Raising

Capacity Building

Harmonization

Country-specific support
Inclusion of e-GP in CPARs
Training
Procurement
Policy
Country Knowledge
exchange (e.g. VC,Operations
BBL)
&
based
Project financing
&
Guidelines
work
Monitoring
e-GP toolkit (e.g. readiness assessment,
roadmap)
Joint website with forum, database, tools
3rd International e-GP Conference

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Strategic e-GP Framework

Procurement Operations & Monitoring
Awareness Raising

Capacity Building

Harmonization

Client Connection Portal

Project Portal
Self-entry system for the publication
of procurement notices Procurement
Policy
CountryOperations
awarded contracts
&Disclosure ofbased
&
Guidelines
work
e-Procurement
system for hiring of
Monitoring
consulting firms and individual
consultants by the World Bank
Procurement reporting systems
Integration
Interactive bidding documents

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