[email protected] –4-21-05 1 reducing corruption through electronic procurement eduardo talero...
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[email protected] –4-21-05
Reducing Corruption through Electronic Procurement
Eduardo Talero Washington, April 21, 2005
[email protected] –4-21-05
OVERVIEW
• What is e-procurement?
• What is the e-procurement cost/benefit function?
• How can e-procurement reduce corruption?
• What are the key points to remember?
[email protected] –4-21-05
e-GP: FULL SYSTEM
SUPPLIERS
BUYERS
User Support Facilities
Transaction Facilities
Disclosure Facilities
Systems Integration Facilities
Procurement AuthorityLegislatureExecutivePublic
[email protected] –4-21-05
e-GP DISCLOSURE FACILITIES
BUSINESS OPPORTUNITIES
CONTRACT AWARDS
LAWS / REGULATIONS
BIDDING DOCUMENTS
Disclosure Facilities
SUPPLIER ROSTER
SUPPLIERS
BUYERS
Procurement AuthorityLegislatureExecutivePublic
CODING SCHEME
STATISTICAL DATA BASE
[email protected] –4-21-05
VOLUME
COST
E-Purchasing
High
Online Auctions Bidding Reverse Bidding
Online Shopping
High
Low
Low
e-GP: TRANSACTION FACILITIES
E-Tendering
Framework Contracts
[email protected] –4-21-05
e-GP: USER SUPPORT FACILITIES
Supplier Registration & Alerts
Solicitation Preparation Support
Bid Preparation Support
Bid Evaluation Support
Research Support
Reference Prices
Electronic Payments
SUPPLIERS
BUYERS
Procurement AuthorityLegislatureExecutivePublic
[email protected] –4-21-05
E-Government
e-GP: INTEGRATION FACILITIES
Integrated Fiscal Management
Requisitioning
Contract Management
Inventory Control
Asset Management
SUPPLIERS
BUYERS
Procurement AuthorityLegislatureExecutivePublic
[email protected] –4-21-05
OVERVIEW
• What is e-procurement?
• What is the e-procurement cost/benefit function?
• How can e-procurement help reduce corruption?
• What are the key points to remember?
[email protected] –4-21-05
User Support Facilities
Transaction Facilities
Disclosure Facilities
Integration Facilities SYNERGY
ECONOMY
EFFICIENCY
TRANSPA-RENCY
THE e-GP COST-BENEFIT FUNCTION
IMPACTe-GP SYSTEMINPUTS
Governance
Leadership/Human
Resources
Institutional Change
Technology
Financing
[email protected] –4-21-05
Leadership and policy reform
• Declares e-GP system official publication vehicle• Mandates publication through the system of
business opportunities, bidding documents, questions and answers, contract awards.
• Establishes publication time standards to be enforced by the system.
• Declares non-compliant transactions invalid.• Makes management responsible for accuracy of
information.
Example: Chile: Jan.,2003 Executive Order
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e-GP COST – BENEFIT RATIO
Full e-GP System
Financing: US$ 2.5 – 3.5
million/Country
Over 8% of GDP
10-20% Transaction cost reduction
Non
-Fin
anci
al In
puts
EFFICIENCY
TRANSPA-RENCY
ECONOMY10% cost reduction (0.8% of GDP)
SYNERGY
•E-Government•Fiscal Management•Systems Integration
[email protected] –4-21-05
OVERVIEW
• What is e-procurement?
• What is the e-procurement cost/benefit function?
• How can e-procurement help reduce corruption?
• What are the key points to remember?
[email protected] –4-21-05
HOW CAN E-PROCUREMENT HELP REDUCE CORRUPTION?
• Illuminating the playing field
• Facilitating entry
• Standardizing communications
• Keeping score
• Leveling the playing field
• Enforcing the rules
[email protected] –4-21-05
e-GP: TRANSPARENCY BENEFITS
OVER 8% OF GDP
•HEALTH SERVICE RECIPIENTS•PUBLIC TRANSPORT USERS• STUDENT POPULATION•MOTORISTS•ETC.
•MID SIZE BUSINESSES•LARGE SUPPLIERS•SMALL SERVICE FIRMS
•ALL GOVERNMENT
[email protected] –4-21-05
e-GP: TRANSPARENCY BENEFITS
OVER 8% OF GDP
•HEALTH SERVICE RECIPIENTS•PUBLIC TRANSPORT USERS• STUDENT POPULATION•MOTORISTS•ETC.
•MID SIZE BUSINESSES•LARGE SUPPLIERS•SMALL SERVICE FIRMS
•ALL GOVERNMENT
[email protected] –4-21-05
How can e-procurement help reduce corruption?
• Illuminating the playing field
• Facilitating entry
• Standardizing communications
• Keeping score
• Leveling the playing field
• Enforcing the rules
[email protected] –4-21-05
How can e-procurement help reduce corruption?
• Illuminating the playing field
• Facilitating entry
• Standardizing communications
• Keeping score
• Leveling the playing field
• Enforcing the rules
[email protected] –4-21-05
e-GPSTANDARDIZES COMMUNICATIONS
SUPPLIERS
BUYERS
Clarification questions
Proposals
Bidding documentsClarifications
Request for documents
Clarification questions
Payment
Purchase plans
RFQs & RFPs
Notice of Award
Clarifications
[email protected] –4-21-05
How can e-procurement help reduce corruption?
• Illuminating the playing field
• Facilitating entry
• Standardizing communications
• Keeping score
• Leveling the playing field
• Enforcing the rules
[email protected] –4-21-05
How can e-procurement help reduce corruption?
• Illuminating the playing field
• Facilitating entry
• Standardizing communications
• Keeping score
• Leveling the playing field
• Enforcing the rules
[email protected] –4-21-05
Policy Reform + Institutional Reform + Human resource development
STAGED DEVELOPMENT OF e-GP SYSTEM
INTEGRATION FACILITIES
TRANSACTION FACILITIES
DISCLOSURE FACILITIES
E-catalog Purchases
Reverse Bidding E-Tendering
[email protected] –4-21-05
How can e-procurement help reduce corruption?
• Illuminating the playing field
• Facilitating entry
• Standardizing communications
• Keeping score
• Leveling the playing field
• Enforcing the rules
[email protected] –4-21-05
OVERVIEW
• What is e-procurement?
• What is the e-procurement cost/benefit function?
• How can e-procurement help reduce corruption?
• What are the key points to remember?
[email protected] –4-21-05
E-GP AND CORRUPTION: KEY POINTS TO REMEMBER
• Political leadership and policy reform are critical
• Success not possible without culture change
• Gradual development is possible and desirable
• Modest start yields large transparency benefits
• Overall impact can be major
• Every country case is different