E-Procurement for Improving Governance
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1 E- for Improving Governance A World Bank live e-learning event addressing the design and implementation of e- procurement infrastructure Session 2b: Creating a Strategic
2 Topics An analysis of an electronic Public System Creating a Strategic Plan for Public Why an Strategic Plan? What should the Strategic Plan address?
3 Reforming in Panama Before PanamaCompra RFPs published in newspapers No central location for bid opportunities Vendors paid for bidding documents Process not transparent Contracts were not public Government budgets were secret Costly and slow process Focused on complying with cumbersome procurement laws Needed to promote trust via complete transparency PanamaCompra Today New approach based on best practices PanamaCompra procurement portal All government agencies required to publish bids All procurement info readily accessible Increased accountability e-catalogs Purchasing now more efficient Substantial direct and indirect savings Supports over $2 billion USD in purchases Prompted government Increased Transparency more transparent and Increased business participation accountable Increased visibility of Source of information on procurement activities procurement activities open for public review
4 Reforming in Panama Before PanamaCompra RFPs published in newspapers No central location for bid opportunities Vendors paid for bidding Strategic Plan documents for Public Process not transparent Contracts were not public Government budgets were secret Costly and slow process Focused on complying with cumbersome procurement laws Needed to promote trust via complete transparency PanamaCompra Today New approach based on best practices Strategic Plan Purchasing Elements: now more PanamaCompra procurement efficient portal 1.More technology Substantial direct and All government agencies 2.Standard indirect docs/processes savings required to publish bids 3.Leveraging Supports the market over $2 billion All procurement info readily USD in purchases accessible 4.Training Prompted government Increased Transparency 5.Purchasing more plan transparent and Increased business participation 6.Follow-up accountable and Monitoring Increased visibility of Source of information on procurement activities procurement activities open for public review Final objective: Align institution s purchases to Government Budget Increased accountability e-catalogs
5 A Strategic What is a Strategic Why create a Strategic? What is the objective of a Strategic Provides a roadmap that will allows the country to improve all business processes around public procurement. Helps coordinate work with all parties involved, from both the public sector and the private sector. Provides a roadmap for automating the whole public procurement system, while promoting principles such as transparency, efficiency and savings.
6 A Strategic What is a Strategic Why create a Strategic? What is the objective of a Strategic International experience has demonstrated that legal reforms and the implementation of an electronic procurement system are only the first steps for the modernization of all the public procurement system. In order to consolidate the transparency, efficiency and technological advances of an e system, it is important for components of the public procurement system to modernize as well. A strategic plan is required to make sure that this modernization process is both cohesive and coordinated.
7 A Strategic What is a Strategic Why create a Strategic? Objective: Establish a Culture of Planning that helps ensure that all government institution purchases are aligned with the Government s national budget. What is the objective of a Strategic
8 Participation by all Stakeholders is Critical One key to success to communication and active collaboration between all parties involved in the public procurement system. Buyers Vendors Government Success depends on being able to The private institutions, involve as all stakeholders. sector, including PanamaCompra s SMBs users Participation and collaboration between interested parties from both from the public and private Citizens sectors is critical Public vigilant of all procurements processes
9 1. More Technology 2. Standard Procs/Docs Faster processes Increase competition Create savings Simple processes Standard docs More efficiency Pillars of the Strategic 3. Leveraging the market High volume purchases Framework contracts Savings 4. Training Certify procurement HHRR Know-how 5. Planning Purchasing from budget Savings Efficiency 6. Monitoring Follow-up reports Process indicators
10 Pillars of the Strategic 1. More Technology Technology eases standardization of both processes and documents Buyers and vendors learn from these processes Every transaction is logged for auditing Decision-making based on information 2. Standard Documents/Processes Standard bidding documents Clear terms and conditions for all contracts. Categories based on UNSPSC. Cost savings Increased compliance with regulations
11 Pillars of the Strategic 3. Leveraging the market No more dispersed acquisitions - Government applies focused buying power to achieve: Better bargaining Better pricing Target quantities - no less, no more One simple contract for goods and services Lower barriers to vendor entry 4. Training experts: less errors, better performance Buyers profile: job stability Less claims. Code of ethics
12 Pillars of the Strategic 5. Planning Better planning = faster budget execution Budgets based on plan - No more, no less Transparent Markets - Vendors know procurement needs in advance Speculation is punished On-time payment 6. Monitoring Performance indicators support better auditing Government is accountable to its citizens Management through performance Risks prevention ex ante ex post concurrent
13 Current Status of Panama s Strategic According to the first pillar, Panama is already transforming its electronic procurement system. Version 2.0 improvements will make possible the use of electronic commerce tools, which translates very well in both efficiency and cost savings. Panama is currently presenting this plan to all parties involved in the public procurement system Involving all parties is key to a successful implementation of the strategic plan for public procurement. Electronic documents Electronic signatures Proposals via Internet Electronic catalog Information searching tools Vendor registry Electronic messaging Electronic payment Business intelligence Purchase orders Contract Management Systems integrations with other Goverment apps Transparency + Efficiency + Savings + Citizen Audit
14 Discussion Issues: What is your country s current state of transparency, competition, and accountability within your procurement systems? What roadblocks do you think you would encounter when reforming the procurement systems within your country? How can you promote coordination and participation between stakeholder groups within your country? Are your procurement staff prepared for changes in the planning and procurement systems?
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