1. e-Procurement System (SETAD)
Iran Center for e-Commerce Development (ICeCD)
November 2013
Iran Public
e-Procurement System (SETAD)

2. Public e-Procurement System
Phases 1
Small & Medium purchases
Definition
Iran Public e-Procurement System that is called “SETAD”, is a web based solution for doing all transactions (Tenders & Auctions) by public organizations.
This system enables the buyer executive agencies to do all stages of the purchase & Auction process in a decentralized and integrated system.
SETAD is the largest IT project in the country 2
e-Auction 3
e-Tender (Major purchases) 4
Purchasing of Services 5
Foreign purchases

3. Public e-Procurement System
Goals and objectives
Improve efficiency & transparency in purchasing process (55% achieved)
Managing and supervising public sector purchases (68% reached)
Following the same & common purchasing policies and processes by the public sectors (85% achieved)
Security management and application of digital signature in the country (100% achieved)

4. Public e-Procurement System
Goals and objectives
Product management and application of national classification system (Iran-code) in the country (82% achieved)
Preparation for market control & price stability (47% achieved)
Data and information management (62% achieved)

5. General view of Iran Public e-Procurement System (SETAD)
Purchasing
e-Auction
e-Tender
Registration
Registration
Registration
Purchase Request
Auction Notice
Tender Notice
Request For Quote (RFQ)
Prepare Offer (Bids)
Prepare Offer (Bids)
Ordering
Opening & Award
Opening
Delivering
Return Of The Deposit
Evaluation
Payment
Payment & Exit Permit
Award
Delivery
Contract
Execute Contract
Payment

6. Iran Public e-Procurement Stake holders
Ministry Economic Affairs and Finance
Suppliers
Banks
Certificate Bodies
Corporative Organization
Transportation Companies
SETAD Stake holders
Standard Certification Body
Digital Signature Certificate Authority (CA)
Supreme Audit Court
Public Buyers
Trade and Merchants affairs center
Iran Code
Insurance Companies

7. Public e-Procurement System
Challenges
SETAD user resistance in all governmental agencies to do their purchases through the system
Internal end users resistance to learn multiple procurement systems and procedures
Immaturity of suppliers
Lack of the end user IT knowledge
Public e-Procurement System

8. Methodology Analysis phase Design phase Development phase
Deployment and maintenance phase
Software
Security
Doing bench marketing studies
Doing feasibility study project
Defining the project scope and the
schedule to run the project
Determining the Priorities, risks and
software development processes
Identifying the Strategies and the solutions available to reduce the risks 8

9. Methodology Analysis phase Design phase Development phase
Deployment and maintenance phase
Software
Security
Stabilizing the product requirements
Designing the software architecture
Specifying the features, terms and
limitations of the system
Defining and designing the user
interfaces (UI)
Testing and evaluating the prototype
made, to eliminate the risks
To ensure that the proposed vision is
able to be implemented within the
software architecture 9

10. Methodology Analysis phase Design phase Development phase
Deployment and maintenance phase
Software
Security
To develop physical model from the
logical model
To ensure the product stability
To ensure that all the project
stakeholders are ready for system
deployment
To ensure the accuracy and quality
of the developed system 10

11. Methodology Analysis phase Design phase Development phase
Deployment and maintenance phase
Software
Security
Training the users
Supporting documents
Including the user guides documents
FAQs
Online manuals
Making facilities and executing call
center and help desk
Evaluated, prioritized and designed
needs and necessary changes 11

12. Methodology Analysis phase Design phase Development phase
Deployment and maintenance phase
Software
Security
Developed in J2EE
Using IBM DB2
Communication protocols: TCP/IP V4.0
Security in 3 main layers :
1-Application layer
2-Web Server layer
3-Database layer 12

13. Methodology Analysis phase Design phase Development phase
Deployment and maintenance phase
Software
Security
Using digital signature in documents
Equipping the system with PKE (Public Key Enabled) capabilities
Creating Security Operation Center
The possibility of encryption using
conventional hardware such as HSM
The possibility of time stamping critical events
Provide a comprehensive solution to
facilitate security operation center
conceptual model 13

14. Re-Engineering
Analysis of the Iranian government buying process in order to facilitate the buying process and process integration
Standardization of the buying forms through the Iran Public e-Procurement System
Standardization of the electronic goods catalogs

15. Standards
Risk Assessment and Use the controls based on ISO27000 series of standards to reduce the risks
UNCEFACT /BRS/ TBG1 in catalogue process
RUP with UML
SOA
J2EE
JDBC Type 4
Web service
PKCS7 for Certification

16. Action taken so far
Developing modules and processes that is needed by public departments based on government laws
Using the national classification system (Iran code) for the goods and services
Coordinating and settlement with public supervision bodies and organization
Preparing facilities for internet payment from government account to suppliers based on state cabinet laws

17. Statistical reports 1 Trained public agencies Users (Purchase) 2,490
Row
Index
Number 1
Trained public agencies Users (Purchase)
2,490 2
Trained public agencies Users (Auction)
300 3
Digital Signature certificate Issued (Purchase)
1,010 4
Digital Signature certificate Issued (Auction) 5
number of product code (Iran Code)
1,600,000

18. Total number of registered suppliers (Purchase)

19. Total number of registered buyer executive agencies (Purchase)

20. Total number of purchases

21. Total number of registered bidders (Auction)

22. Total number of auctions

23. The volume of auctions ($)

24. Achievements & Results
Improvement
General
Reducing human errors approximately up to 65%
Electronic security and more protection against illegal activities
Reducing corruption and preventing abuse in executive bodies by 35%
Increasing competition
Ability to provide different kinds of managerial and supervisory reports
Ability to on-line subtle control of public purchase process at any time and any place

25. Achievements & Results
Improvement
Purchase & Tender
Increase efficiency in purchasing process
- Improvement in management costs by 38%
- Reduction of buying costs by 54%
- Reducing business cycle time by 62%
Reduction of paper costs up to 70%
Reduction of opening time from 8 hours to 35 minutes

26. Achievements & Results
Improvement
Auction
Reduction of opening time from 10 hours to 30 minutes
Possibility of holding several auctions simultaneously compared to the manual system
Profit increase by 100% compared to the manual system

27. Next Step Onward Development of a site for private buyers
Developing system in order to carry out foreign purchases
Developing system in order to provide online insurance services for suppliers
System development in order to provide transportation services for buyers and suppliers
Allow the use of SMS to inform the users
Using the mandatory and optional standards for goods
System improvement

28. Thank You

29. General view of SETAD in Purchasing
Goods
Services
Real State
Subject Of Purchase
Ministries Staff
Sub Ministries
Departments
All Governmental
Agencies
Scope Of Implementation
Buyer
Registration
Supplier
Registration
User Profiles
eCatalogue
Registration Modules
Purchasing Modules
Purchase
Request
Request For
Quote (RFQ)
Ordering
Delivering
Payment
Management
Reports
Review
Complaints
Supplier
Evaluation
Supplier
Survey
Additional Modules
Small
Transactions
Medium
Transactions
Volume Of Purchase
Return
Purchase Type 1
Purchase Type 2
(Board)
Type Of Purchase

30. General view of SETAD in Auction
Movable
Immovable
Subject Of Auction
Ministries Staff
Sub Ministries
Departments
All Governmental Agencies
Scope Of Implementation
Registration
User Profile
Registration Modules
e-Auction
Modules
Auction Notice
Prepare
Offer(Bids)
Opening &
Award
Return Of The
Deposit
Payment &
Exit Permit
Delivery
Management
Reports
Review
Complaints
Sale
Additional Modules
Medium
Transaction
Great Deals
Volume Of Auction
Return
Type Of Auction
Limited
Public

31. General view of SETAD in Tender
Goods
Services
Subject Of Tenders
Public
(1or 2 Stage)
Limited
(1or 2 Stage)
Qualitative
Evaluation
Type Of Tender
Scope Of
Implementation
Ministries Staff
Sub Ministries
Departments
All Governmental
Agencies
Registration
Modules
Tenderer
Registration
Bidder
Registration
User Profile
e-Catalogue
e-Tendering Modules
Tender Notice
Prepare
Offer(Bids)
Opening
Evaluation
Award
Contract
Execute Contract
Payment
Additional Modules
Management
Reports
Review
Complaints
Document
Management
Archiving
Digital signature
Time Stamp
Hashing &
Encoding
Security infrastructures
Return
Volume Of Tender
Major
Transaction