Do’s and Don’ts of

e-procurement
ADB PPI – Vietnam 2010

01/12/2010
E-GP Systems

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E-GP Systems

 Tender Boards
 Electronic Bid Box
 Reverse Auction
 Market Place
 Vendor/Contractor Registry
 Contract Monitoring
 Electronic Document Distribution
 Automatic Notification
 Payment and budget controls
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About e-GP

 E-GP is a Business process

 E-GP is not a short term IT project
 E-GP is not procurement reform on its own
 E-GP needs legislative and regulatory
support
 E-GP needs government commitment
 E-GP needs a champion

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Value of e-GP
 An e-GP System is an information gateway between
vendors and government buyers.
 Primary result is transparency by making information available.
 An open competitive procurement environment that
generates best value for government
 – critical mass = more value for both government and vendors.
 Content has more value than the features and functions of
the system.
 Opportunity for Information Management, Reporting, and
Monitoring
 Centralize Management with de-centralized responsibility.
 Opportunity to implement and manage standard processes.

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E-GP Considerations

 You can make your system as simple or as

comprehensive as you need.
 The more integrated your system is with other
systems, the more dependencies you create.
 The system should support policy not drive
policy.
 E-GP is not just technical implementation– it is a
business re-engineering process.
 E-GP will introduce new complexities to the
procurement process.
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Planning E-GP

 Decide what you want to address

 Transparency
 Increase Competition
 Anonymity
 Security
 Economic Development
 Trade
 Manage Risk
Business Models
 Capacity for Change
Skills, environment, resources
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E-GP Business Models

 Shared Service Environment

 Canada, India (NIC)
 Public Private Partnership Government
India - GoK
 Owned and Operated
 Singapore
 Government Managed, 3rd party operation
 Philippines

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Primary Decision for Model
 Funding
 The implementation of a full e-GP system can require
significant upfront investment for the applications and
infrastructure to support the system operation.
 A sound business plan could provide the necessary
funding to support the e-GP operation.
 Managing Risk
 Many government organizations do not necessarily have
the required resources or skill sets to manage all aspects
of the system development and operation.
 This creates a significant risk that may be associated with
delays or system failures during the delivery and
operation.
 A 3rd party partner can help alleviate some of the risk with
regards to resources and future technology advances.

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System Needs

 Service Level Agreements

 Capacity Planning
 Back-up and Recovery Solutions
 Disaster Recovery Plans
 Disclaimers / Privacy Policies
 Limitation of Liabilities
 Instructions to Bidders
 Policies for system failures
 User Terms and Conditions
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Business Needs
 Clear terms of use to protect the operator of the
system in the event of system failure or issues that
may occur.
 Clear definition of ownership and rights to
information and system to ensure government is
protected.
 Establish a support organization and funding to
guarantee sustainability of the operation of the
system.
 Establish a training and communication plan to
support the system implementation.
 Long-term plan - e-GP is a life long business re-
engineering program not just a short-term ICT
project.
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Business Management

 LifeCycle Development – 15 year plan

 Evolve over time.
 Content is Key.
 Large User Base is required.
 Plan for failures.
 Security is more than just the system.
 Training –system and procurement.
 Marketing and Business Development
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Do’s

 Identify
your objectives for e-GP
 Ensure strong support for e-GP initiative
Government Champion
Regulation and legislative support
Funding
Operations / Support Organization
Management/Steering Committee
Business Development / Marketing
Analysis and on-going planning
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Don’ts

 Do not underestimate the challenges in

changing a process.
 Do not assume everyone will have the same
interpretation of a law, regulation or directive.
 Do not make system processes a law –
directives are easier to change than a law.
 Do not assume all users and organizations
are equal.
 Do not assume your system will never fail.
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Things to Remember

 Stuff Happens
 True value is the content
 System design is more important than the code
 System training and procurement training are 2
separate but related task.
 Need a strong partnership between business
and technology providers
 Let the system evolve and grow
 You can’t outsource responsibility
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 Thank You
Joseph Fagan
E-GP Consultant with the ADB
joseph.fagan@gmail.com

01/12/2010