Public Procur ement. Global competition era has dawned. Renewed recognition on the role of procurement

Transcription

1 February 2011

2 Public Procurement Service Function Introduction to PPS Background of KONEPS Rationale Development Characteristics of KONEPS Single Window (One stop / Integration) Market share KONEPS Architecture KONEPS at a Glance Process Contributions to Public Procurement International Recognition and Cooperation

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4 Global competition era has dawned Renewed recognition on the role of procurement Public Procur ement Increase of net profit possible thru reduction of procurement cost Enhancement of procurement administration efficiency is gaining importance Budget saving is required

5 Changing procurement paradigm due to IT development Public Procur ement Shifting from B2C to B2B & G2B because of e-commerce growth Changing procurement procedures as a result of automation, simplification & easier information sharing Public procurement encompasses public enterprises in WTO Agreement WTO Agreement changing to provide for enhancement of transparency to facilitate trade liberalization

6 Combination of centralized and decentralized systems The Central Procuring Agency (PPS) Departments and Agencies The volume of Public Procurement (FY 2009) : US$ 122B Centralized : $ 43B(35%) Decentralized : $ 79B(65%) Centralized 35% Decentralized 65%

7 As Governmental Body for Procurement, PPS is - responsible for procurement of goods and construction works with the following threshold Other procurement : each public entity

8 Introduction to PPS <Symbol> Representing the World s best Transparent and Fair e-procurement system P in PPS * PPS : Public Procurement Service e in e-procurement C in Clean Procurement 1st - World premier <Slogan> Put Customers First! Customer-oriented business management * Slogan usually goes with the symbol

9 Vision " World-renowned procurement agency with customer satisfaction" Mission Based on professionalism and transparency, PPS provides best-value products, services, and construction works in a timely fashion and thereby effectively supporting government organizations to undertake their duties

10 Created in 1949 as a provider of supply-related services for government departments and agencies customers Central & Local governments, State-owned enterprises, etc suppliers Operated on a business-like, fee-for-service basis. 2

11 Roles and responsibilities Buys goods and services valued more than US$ 100K Contracts for construction services valued more than US$ 3M Stockpiles raw materials such as aluminium, copper, etc. Manages government-owned properties Operates Korea ON-line E-Procurement System (KONEPS)

12 PPS organization Administrator Deputy Administrator Audit and Inspection Officer General Services Division Office of Planning & Coordination e-procurement Service Bureau International Goods Bureau Procurement Service Bureau Construction Works Bureau Quality Management Office 11 Regional PPSs Overseas Procurement Offices (NY, Chicago, Tokyo, London, Beijing)

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16 Development of KONEPS Preparation Period ( ) Electronic Document Exchange System (1997) Online Shopping Mall System (1998) e-tendering System (2000) e-guarantee and e-payment System (2001) KONEPS Introduced ( ) All bidding, contracting, and payment procedures processed through a single web site

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22 KONEPS Architecture

23 KONEPS Structure The on-line procurement system whereby whole procurement procedures are processed automatically is composed of 4 major solutions bidding, contracting, purchasing and payment. e-bidding Bid Notice Registration Price Assessment/RFQ Auction Management Evaluation / Analysis e-payment Payment Request Payment Verification Expenditure Mgmt. Monetary Transfer Fee Management KONEPS System e-contracting Contract Registration Contract Composition Contract Review Contract Closure e-shopping Mall Product Registration Product List Inquiry Product Search e-mall

24 KONEPS at a Glance

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30 E-payment is made after inspecting and accepting the final products

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36 Transactions through KONEPS 42,400 Public Entities 195,000 Registered Suppliers $56 bn $63 bn $86 bn In 2009, over 70% of Korea s total public procurement (122 billion USD) was conducted through KONEPS Total Volume of Transactions Conducted via KONEPS

37 Transactions through KONEPS 140 $122 bn 120 $86 bn $42.7 bn Total KONEPS PPS

38 e-biddings through KONEPS 235, , , , Number of e-biddings Total number of bid participants (unit: million)

39 Enhancing Efficiency and Transparency Saves US$8.1B worth of transaction costs annually Reduction of manual work & contract-related papers, time-saving, etc Improves transparency in doing business with the government Minimized face-to-face contacts All the information is published on-line on a real time basis

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45 Strong will of the government for reform Establishment of special committee for e-government The world-class Internet infrastructure already in place 93% of Korean households use broadband Internet network Application of systematic BPR/ISP and new technologies Improvement of purchasing procedures prior to system development Adoption of new technologies (e-signature, encryption, e-documents) into KONEPS system Training and education of users PPS Training Center, On-line customer support and CBT Program Employees professionalism and their aspiration for change

46 Recommendations Integrate and share all information about public procurement Make a single e-procurement system for all public organizations Standardize procurement process and electronic document (XML) with digital signature Take the step-by-step approach from integrated bid information and e-bidding Need to make more clear rules and regulations according to the reforming the process

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51 International Cooperation Support for System Implementation Support for system implementation in Vietnam (pilot system) and Costa Rica (full implementation) using KONEPS modules Feasibility Studies for e-procurement Implementation Vietnam, Pakistan (2005) Mongol, Georgia (2007) Costa Rica, Uzbekistan, Tunisia (2008,2009) e-procurement Workshops E-Procurement Workshops with ADB, UN, the World Bank Training Program for countries interested in e-procurement implementation

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53 Proactive Technical Schemes Preventing Bid Rigging Automatic Prevention of Unqualified Suppliers from Using KONEPS - to bar unqualified (bankrupt, business-suspended, non-existing) suppliers from entering KONEPS at the outset Bio-Fingerprint Recognition System - to deter illegal use of other bidders authentication certificates PC Remote Control Use Blocking System - to prevent illegal use of other non-owner certificates via any PCs Collusion Detection System - to analyze the bidding pattern and results to detect any evidence of collusion