www.ppi-ebrd-uncitral.com. -. reform of public procurement system what is needed for quick...
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www.ppi-ebrd-uncitral.com
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REFORM OF PUBLIC PROCUREMENT SYSTEM
What is needed for quick introduction of e-procurement system?
Public procurement problems in Post-Soviet countries
Non healthy competition
Systemic Corruption
Non fully implemented reforms
Complex bureaucratic procedures
High compliance costs
Geographical inequality
О К
А К У П
Г О С З
Е М А
C И С Т
05.11.2013 2
“Paper based” procurement systems are less effective than electronic ones
According to the international experience, the introduction of e-procurement system saves at least 10% of the procurement budget due to higher efficiency and transparency
For example, public procurement budget of Azerbaijan is around $ 5.7 bln per annum. Every day of non-reforming will cost
$ 1 500 000 per day
Some advantages of e-Procurement1. Increased transparency – Everyone Sees EverythingMaximum transparency of all procedures. Better mechanisms (including public ) of control over the government spending secure the increased efficiency. Minimization of systemic corruption2. Increased efficiency due to IT technologiesUse of the modern IT solutions, process automatization 3. Savings due to increased competition Openness and increased accessibility of the system promotes greater competition. Average number of participants is increased4. Wider geography of the suppliers, minimization of “geographical inequality” Geographical distance – no problem any more (one click distance)
The future is for e-Procurement
Some countries are better in e-Procurement
Absolute transparency Any document, any information, related to public procurement (annual plans, tender notices, tender documentation, bids, decisions of evaluation committees, contracts and their implementation, payments etc) have to be open and freely accessible online;
All tenders – only electronic;
Estimated value of the contract is open (argument: closed information is getting corruptive value); Bidder can not submit the bid higher than estimated value of the contract;
Documents from state institutions (extract from company registry, tax leniency certificate, certificate on insolvency proceedings, etc.) are required at the end of the procedures and only from the winning bidder; Principle of self declaration
Use of e-signature is not mandatory neither for suppliers’ registration, nor for the bid submission
Essential decisions, that will ensure successful introduction of e-Procurement in post soviet countries
Reverse auction is part of the tender. Bidders are free to decide whether participate or not.
Winner is identified using pass/fail criteria. Sequential evaluation of the lowest bid, i.e. bidders are not evaluated all at once, but the lowest bidder first. If the latter complies with the technical and qualification requirements, he deems to be the winner;
Any registered user can request the clarification of tender documents, using electronic Q&A module. The relevant procuring entity is obliged to post the clarification in due time;
Any registered user can appeal and freeze any tender, using the electronic appeal module. Tender freeze period shall be minimal (e.g 10 days in Georgia);
Critical decisions that will ensure the effectiveness of the reform
System architecture: Georgian model, 2009
Bidding
Supplers
DatabaseDB
Modules
Web application
Anti corruption officer
“Roof” for these two
Reformer- top person at State Procurement Agency Anti corruption officer – top person at relevant law enforcement body Roof for these two – top person from the Government
Reformer
Тtroika – reform champions
Optimal solution multi platform system, where the database and e-reverse auction module is operated by the state (system administrator), while all other modules (front end) are “de monopolized” and can be developed and operated by private companies
The system is cross accessible – the user of platform A can participate in the tender at the platform B and vice versa. This enables private platforms to develop and operate the same or additional services, thus spurring competition between them
Advantages of such approach are obvious:
• Increased competition between e-procurement platforms and their service orientation
• Single point of access and consolidated data
System architecture: Ukraine model concept, 2014
System architecture: Ukraine model concept, 2014
Database
Bidding module
Private platformsSuppliers
MonitoringBusiness
intelligence
Concept of Ukraine e-Procurement system
• Open source• One, common database• One, common e-reverse auction module• Many user interfaces• Interaction through API • e-Signature is not mandatory• Standard protocols for data exchange• Simple, easy to implement solutions• MVP – minimum viable productMore than 50 IT specialists (architects, analysts and developers), divided into eight thematic working groups)
are actively involved in the elaboration of the detailed ToR and development of the pilot e-procurement software. First release of the MVP is ready
Ukraine – innovative development of open source e-Procurement system
The development process is fully openFull inclusion of many public and professional IT associations
Concept of e-Procurement system development in Ukraine: https://drive.google.com/file/d/0B2…
MoU between the state institutions and public and professional associations on the implementation of the Concept https://drive.google.com/file/d/0B2...
ToR on development of e-Procurement system https://drive.google.com/open?id=1uriNzZ554KbsNam21aTzf7DOifnFuh6xf5hR1U019t0
GitHub Repository and APIhttp://www.github.com/openprocurement/openprocurement.apihttp://www.github.com/openprocurement/openprocurementhttp://api-docs.openprocurement.org
