Download - Government Supplies Department
Presentation to IIAC
by Stanley Wong Deputy Director of Government Supplies
Government Supplies Department
Purchasing agent for government departments and non-government public bodies (including Hospital Authority) acquiring high value goods and services
Store and deliver common user items
Total value of purchases : HK$6,794 million
(US$873 million)
Registered suppliers : 4,864 Tender invitations issued : 44,680 Tender offers received : 9,711 Contracts awarded : 4,124
Key Procurement Statistics 1999
computer equipment and software :HK$2,513 million (US$324 million) 37%
pharmaceuticals :HK$1,288 million (US$166 million) 19%
aircraft and spares:HK$737 million (US$95 million)11%
hospital and medical equipment :HK$413 million (US$53 million) 6%
telecommunications equipment and spares:HK$272 million (US$35 million) 4%
Major categories of purchases
Key Procurement Statistics 1999
Key Procurement Statistics 1999
Major categories of purchasesscientific, analytical and laboratory equipment
and consumables :HK$190 million (US$25 million) 3%
medical consumables :HK$164 million (US$21 million) 2%
photographic and audio/video equipment and consumables :
HK$146 million (US$19 million) 2%other categories :
HK$1,071 million (US$138 million) 16%
Purchased products were manufactured in 38 different countries or administrative regions
Less than 2% of products originated in Hong Kong
Approx. 90% of tenders submitted by branches/agents in Hong Kong
Key Procurement Statistics 1999
IT Systems Being Maintained Two mid-range based computer systems
Goods On-line Ordering, Distribution, Stock Management and Accounting Network System (GOODSMAN)
Procurement Management System Upgrade (PMSU) One web-based system
Electronic Tendering System (ETS)
GOODSMAN The system supports
2 LANs with 43 and 15 workstations at GSD Headquarters and GLC
285 remote terminal users Major functions of the system provided to
remote terminal users includeOn-line orderingOn-line Enquiry
The system was enhanced in June 1999 by a barcode function whichImproves the efficiency of warehouse operationImproves the accuracy of stock verification, picking and
goods receipt functions
PMSU Supports more than 100 user licenses
installation and Chinese character processing Electronic Data Interchange (EDI) ready Internet ready with web enabled version
available Enables GSD to enhance tender processing, the
evaluation of offers, order/contract monitoring and supplier performance monitoring
Establishes an on-line linkage between remote clients and GSD Procurement Division to facilitate information interchange
Services provided by electronic means to subscribersregistration of suppliersnotification of tendersissue of tender documentsreceiving and responding to enquiriessubmission of tender offersnotification of contract award
Suppliers have choice between manual system and electronic tendering system
Electronic Tendering System
Operating Statistics (as at 22 September 2000)
403No. of subscribers
-2000
200400600
7-Apr-
0014
-Apr-
0021
-Apr-
0028
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ay-00
12-M
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19-M
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26-M
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2-Jun
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16-Ju
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23-Ju
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30-Ju
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7-Jul-
0014
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021
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1-Sep
-008-S
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15-Se
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22-Se
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Weekly total Withdrawal/DeletionAccumulative total
Operating Statistics (as at 22 September 2000)
526No. of tenders issued through ETS(total value HK$669 million)
0200400600
7-Apr-
0014
-Apr-
0021
-Apr-
0028
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005-M
ay-00
12-M
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19-M
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26-M
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2-Jun
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16-Ju
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23-Ju
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30-Ju
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7-Jul-
0014
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1-Sep
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22-Se
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Weekly totalAccumulative total
Operating Statistics (as at 22 September 2000)
2,666No. of tender documents downloaded
0
1000
2000
3000
7-Apr-
0014
-Apr-
0021
-Apr-
0028
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005-M
ay-00
12-M
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19-M
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26-M
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2-Jun
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16-Ju
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23-Ju
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30-Ju
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7-Jul-
0014
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021
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028
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11-A
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18-A
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25-A
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1-Sep
-008-S
ep-00
15-Se
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22-Se
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Weekly totalAccumulative total
Operating Statistics (as at 22 September 2000)
355No. of offers received
0100200300400
7-Apr-
0014
-Apr-
0021
-Apr-
0028
-Apr-
005-M
ay-00
12-M
ay-00
19-M
ay-00
26-M
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2-Jun
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16-Ju
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23-Ju
n-00
30-Ju
n-00
7-Jul-
0014
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021
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028
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04-A
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11-A
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18-A
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25-A
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1-Sep
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15-Se
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22-Se
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Weekly totalAccumulative total
Operating Statistics (as at 22 September 2000)
Percentage of e-tenders out of all tenders issued
72% of total number of tenders
75% of total value of tenders
Security ConsiderationsSecurity Considerations
Application Security FrameworkApplication Security Framework
Privacy Authenticity
Integrity Non-repudiation
TotalSecuritySolution
Points to note Technical infrastructure, including
security features, have worked satisfactorily
Take up rate slow but rising steadily
Suppliers may need to redesign their business processes
Future developments Can lead to wider system linking
suppliers with many different public sector and private sector organizations
GSD System Supplier
Supplier
Supplierinitial system
extended system
System
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
GSD
other public
sector purchasers
private sector
purchasers
Future Developments Enhancement to GOODSMAN
To support international barcodes To support web-based ordering of common-user items To accept EDI interface with Hospital Authority
Enhancement to PMSU To provide online interface with Pharmaceutical Supplies System of Hospital Authority in EDI format To cope with ETS enhancement to support CTB tenders and eCert To cope with GOODSMAN enhancement to support international barcodes
Enhancement to ETS Extension of ETS to tenders with value above HK$10 million Other parts of public sector may also use electronic tendering
Wider applications of e-commerce Electronic marketplace
For low value purchasesPurchasers display their requirements and potential suppliers respond with their offers
Electronic products cataloguesrange of available products and prices displayed in purchasing organization’s product cataloguesuppliers maintain the content of their page of product catalogue, provide updates to product features and pricesend-users select from catalogue the product brand that is available in the most favourable terms
Suppliers can offer more comprehensive packaging of related products and services with flexibility to adapt to unexpected changes Increases power of the purchaser vis à vis the supplier
more comprehensive product search and analysis to find best available offeryour alternative supplier is just a mouse-click away
Government procurement may become truly internationalsuppliers may seek access to a wider range of government markets
How will the Internet change Government Procurement?
Possibilities for government purchasersgovernments may eventually need to
follow the trend to Internet tradingprocurement rules may need to be
modified to take account of the changing environment
purchasers should retain flexibility to adapt to rapid changes in product features, prices and package deals
How will the Internet change Government Procurement?
Information Systems Strategy Study (ISSS)
Information Systems Strategy Study (ISSS) To assess the information technology
development potential To quantify the IT requirements of GSD in the
next 5 years To assess the following IS opportunities in
arriving at a portfolio of strategic applications:To enhance the GOODSMAN systemTo enhance the PMSU systemTo enhance the relevant PC-based applications of
Allocation Stores Ledger Posting System (ASLPS)Feasibility study on computerization of inventory and
uniform records maintained in departmental supplies section
Information Systems Strategy Study (ISSS)
To explore on the following IT opportunity:Contract Management (using Internet technology)Auto-replenishment of stock by suppliersBusiness improvement opportunities with the use of IT with a view to enhancing productivity, reducing costs, and improving customer serviceElectronic Payment (with GSD contractors)Electronic Tendering and Electronic Procurement for other bureaux/departments
Conclusions Successful migration to e-Commerce requires:
User maturityAn advanced, stable technological infrastructureProcurement rules may need to be modified to take
account of the changing environment
END