Brazil Electronic Government Procurement

ExpoXangai – feb/2010

ContextBrazil: Administrative Spheres Federal Executive structure Ministry of Planning, Budget and Management Secretariat for Logistics and Information Technology

Goals of this presentation: Brazilian experience Results, options, estrategies Lessons learned

BRAZIL – Public Procurement Nowadays:

RESULTS:

Procurement

Providers

Reverse electronic auction

Price Contracted, bt item type and year – 2002 to 2009

Itens Contracted

85% 87% 89% 92% 94% 94%81%

15% 13% 11% 8% 6% 6%19%

94%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009

ServicesGoods

Year Goods Services Total

2002 6.714.436.227,77 13.110.982.956,74 19.825.419.184,512003 6.239.584.416,48 7.905.994.920,67 14.145.579.337,152004 7.824.759.603,72 12.683.403.463,73 20.508.163.067,442005 12.852.792.348,21 12.217.478.931,71 25.070.271.279,922006 17.155.321.422,86 12.643.773.310,91 29.799.094.733,772007 18.196.557.330,44 17.026.034.187,04 35.222.591.517,492008 13.970.504.893,71 13.144.200.690,79 27.114.705.584,502009 22.761.175.025,94 26.968.931.791,38 49.730.106.817,32

Average 13.214.391.408,64 14.462.600.031,62 27.676.991.440,26

Quantity and value contracted, by type of tender – 2009 (R$)

Type Number of Processes Value ContractedCompetitive Bid 1.443 13.632.187.195,97

International Competitive Bid 46 968.713.110,71

Contest 16 987.197,81

Invitation 1.520 63.451.627,07

Exemptiom from Tender 235.688 5.399.712.320,25Inelegibility from Tender 15.838 5.824.096.648,18Reverse electronic auction 34.342 20.471.916.665,42Reverse physical auction 1.091 2.740.335.020,74

Price survey 1.719 628.707.031,16

Total 291.703 49.730.106.817,32

Percentual of value contracted, by type of tender – 2009

Value Contracted1,3%

41%

6%

2%

11%

12%

27%

Competitive BidInternational Competitive BidContestInvitationExemptiom from TenderInelegibility from TenderReverse electronic auctionReverse physical auctionPrice survey

Share on buying values, by economic sector and year – 2002 to 2009, Jan-Dec

Year Industry Commerce Services Others Total2002 2.170.846.859,79 3.010.529.295,88 12.347.612.578,07 2.296.430.450,77 19.825.419.184,512003 2.013.939.738,25 2.496.934.121,52 7.886.286.252,66 1.748.419.224,72 14.145.579.337,152004 2.575.989.695,44 3.217.862.562,60 12.818.664.238,01 1.895.646.571,39 20.508.163.067,442005 4.348.207.918,94 2.384.522.898,93 16.831.383.444,08 1.506.157.017,97 25.070.271.279,922006 3.780.890.181,14 5.791.407.950,95 17.894.371.444,07 2.332.425.157,61 29.799.094.733,772007 4.171.100.304,06 7.806.856.747,62 20.645.368.868,52 2.599.265.597,28 35.222.591.517,492008 3.616.822.993,73 7.873.070.336,60 14.318.522.630,64 1.306.289.623,53 27.114.705.584,502009 6.983.208.249,17 11.147.393.384,73 28.661.510.700,86 2.937.994.482,55 49.730.106.817,32

Average 3.707.625.742,56 5.466.072.162,35 16.425.465.019,61 2.077.828.515,73 27.676.991.440,26

Value Contracted

14% 13% 17%12% 13% 14%

15%18%

16% 10% 22%29% 22%

63% 67% 60% 59%53%

58%

12% 12% 9% 6% 8% 7% 5% 6%

13%11%

19%

62% 56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009

OthersServicesCommerceIndustry

¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid.

Annual Variation on buying processes of common goods and services, by type of tender¹ – 2002 to 2009

Buying Processes

5% 3% 2% 2% 3%

60% 62%55%

36%

22%13% 12%

4%

14%9%

8%

6%

4%

5%

8%

37%67%

79%86%

19% 21%26%

19%

7% 3% 3%

1% 1,4% 2%

3,2%

3%

4%

2%

77,1%

4,8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009Competitive Bid Invitation Price SurveyReverse Electronic Auction Reverse Physical Auction

¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid.

Annual Variation on buying values of common goods and services, by type of tender¹ – 2002 to 2009

Value Contracted

47%40%

15% 11%

36%

5%

8%

6%

4%

6%

22%

55%

34%43%

59%

23%

11% 7%

54,9%

13%7%

5,9%

0%

1%1%

2%

7%

2%

8%

2%

1%2%

3%

0,9%

79% 74%

62%

12%

29,9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009

Competitive Bid Invitation Price surveyReverse Electronic Auction Reverse Physical Auction

ABC Curve on buying values of material groups from the Reverse Electonic Auction –2009

Reverse Electronic Auction: Materials Groups

15%

9%

8%

7%

5%

4%

4%

2%

16%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Equipment for automatic data processing, (including firmware), software,accessories and support equipment

Equipments and medical, dental and veterinary supplies

Vehicle

Instruments and laboratory equipments

Construction materials

Food supply

Furniture

Machinery for specialized industry

Hygiene products

Value Contracted (%)

ABC Curve on buying values of services groups from the Reverse Electronic Auction – 2009

Reverse Auction: Group of Services

15,0%

11,4%

6,9%

6,1%

5,1%

3,7%

3,4%

3,2%

2,8%

2,7%

2,5%

2,4%

2,2%

13,5%

0% 5% 10% 15% 20% 25%

Other Support Services

Maintenance and repair of products made of metal, machinery and equipments

Special Types of Construction Services

Travel Agency Service, Tour Operator and Tour Guide

Iinvestigation Service and Security

Cleaning Services

Leasing services for the right to use non-financial intangible assets

Leasing Services or rental Services of machinery and equipment w ithout operator

Leasing services relating to rental or other goods

Other services/miscellaneous

Other business, technical and professional services

Consultancy Services and management/administration

Land transport services

Engineering Services

Value Contracted (%)

Numbers

Providers 335,000Users 66,000Simultaneous users 22,000Downloads/year 115,000Byers Oficcers 4,000Goods 195,000

Systems – Cronology:

List of ProvidersMaterial CatalogAutomatic PublicationAutomatic CommitmentOther systems IntegrationReverse Physical AuctionReverse Electronic AuctionPrice Registration System (Framework contracts)Preferential Treatment to small business(*) IDB and BIRF accept Comprasnet procurement BI

Perspectives:

Standardization and Scale

Electronic quotation for emergency procurement

Changes in the Public Procurement Law:

Reverse Auction mandatory for lowest price;

Reverse Auction for works under 3.4 millions;

Use of IT in all types of

tenders.

Lessons Learned:“Pioneering pay a price”

“It is not a PANACEA”

“It is a incremental process”.

“every journey begins with the first step....

but you must know the direction”

Starting

Difference made by people

Price Contracted, by Individuals and providers and year – 2002 to 2009

Year Individuals Companies Total2002 1.874.902.343,09 17.950.516.841,42 19.825.419.184,512003 1.468.482.943,44 12.677.096.393,71 14.145.579.337,152004 1.572.669.642,64 18.935.493.424,80 20.508.163.067,442005 2.701.298.291,58 22.368.972.988,34 25.070.271.279,922006 2.805.577.550,75 26.993.517.183,02 29.799.094.733,772007 2.202.176.037,99 33.020.415.479,50 35.222.591.517,492008 1.938.176.468,14 25.176.529.116,36 27.114.705.584,502009 3.055.483.150,43 46.674.623.666,89 49.730.106.817,32

Average 2.202.345.803,51 25.474.645.636,75 27.676.991.440,26

Itens Contracted

3% 2% 2% 1% 1% 3%

97% 98% 98% 99% 99% 97%

0%1%

100%99%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009¹

CompaniesIndividuals

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