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Electronic Procurement the Experience of the Brazilian Federal Government Electronic Procurement the Experience of the Brazilian Federal Government Marcos.

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Presentation on theme: "Electronic Procurement the Experience of the Brazilian Federal Government Electronic Procurement the Experience of the Brazilian Federal Government Marcos."— Presentation transcript:

1 Electronic Procurement the Experience of the Brazilian Federal Government Electronic Procurement the Experience of the Brazilian Federal Government Marcos Ozorio de Almeida Secretariat for Logistics and Information Technology Marcos Ozorio de Almeida Secretariat for Logistics and Information Technology Ministry of Planning, Budget and Management Ministry of Planning, Budget and Management

2 Federal Government Guidelines Less red tapeLess red tape Efficient processesEfficient processes Standard proceduresStandard procedures Support information tools for the public managerSupport information tools for the public manager Managerial controls on expendituresManagerial controls on expenditures Increased Competition on tendersIncreased Competition on tenders Cost ReductionCost Reduction TransparencyTransparency

3 Topics Presentation General Explanation on the General Services System – SISG, the SIASG IT support system and SIASG/COMPRASNET environmentGeneral Explanation on the General Services System – SISG, the SIASG IT support system and SIASG/COMPRASNET environment Inverse Auction and Virtual Inverse AuctionInverse Auction and Virtual Inverse Auction Brazilian cooperation initiatives on government procurementBrazilian cooperation initiatives on government procurement

4 SISG and SIASG IT system and COMPRASNET ModulesModules CharacteristicsCharacteristics ITC & interactivity incorporation on the InternetITC & interactivity incorporation on the Internet Managerial tools facilitiesManagerial tools facilities Transparency, accountability and social control characteristicsTransparency, accountability and social control characteristics Some statistics on procurement of goods and servicesSome statistics on procurement of goods and services Facilities offeredFacilities offered

5 General Services System - SISG SISG Other Branches Executive Branch Direct Administration Indirect Administration Autonomous Agencies Foundations States and Municipalities

6 Information System SIDEC SICON CATMAT COMUNICA SIASG SISME SICAF SISPP COMPRASNET Federal Government Procurement Portal

7 Unified System for Pre-registration of Suppliers - SICAF Certifies fiscal compliance through on- line consultation (on-line checking of SRF, FGTS, PGFN, INSS registers)Certifies fiscal compliance through on- line consultation (on-line checking of SRF, FGTS, PGFN, INSS registers) Provides fast and unbureaucratic pre- registration of Federal Government suppliersProvides fast and unbureaucratic pre- registration of Federal Government suppliers Allows pre-registration through internet SICAFWebAllows pre-registration through internet SICAFWeb 170 thousand registered suppliers 170 thousand registered suppliers 2,000 new registrations a month 2,000 new registrations a month 170 thousand registered suppliers 170 thousand registered suppliers 2,000 new registrations a month 2,000 new registrations a month

8 Year Number of Suppliers Number of Suppliers Registered

9 Types of Suppliers Registered Type of SupplierProfessionalMicro Enterprises Small Enterprises OthersTotal Reg. until Reg. until Reg. until Reg. until Reg. until Reg. until

10 Electronic Posting of Purchases and Contracts - SIDEC Electronic forwarding of documents for publication in the Federal Governments Official JournalElectronic forwarding of documents for publication in the Federal Governments Official Journal Automatic posting of invitations to bid and tender results on the InternetAutomatic posting of invitations to bid and tender results on the Internet Allows searching and download of invitations to bidAllows searching and download of invitations to bid

11 Tenders Announced by SIDEC Year Of. Journal Comprasnet

12 Integrated Price Posting System - SISPP Registers and stores in a data base the prices practiced by the Federal Administration in previous contractsRegisters and stores in a data base the prices practiced by the Federal Administration in previous contracts Provides public managers with a price reference, for assessment of procurement convenienceProvides public managers with a price reference, for assessment of procurement convenience

13 Contract Management System– SICON Allows registration and financial monitoring of contracts undertaken within the Federal AdministrationAllows registration and financial monitoring of contracts undertaken within the Federal Administration

14 Generation of Draft Awards System - SISME Automatic issuance of Award drafts, linked to financial execution of the National Treasury - SIAFIAutomatic issuance of Award drafts, linked to financial execution of the National Treasury - SIAFI Ensures that all Federal Administration contracting and purchases go through the SystemEnsures that all Federal Administration contracting and purchases go through the System

15 Supplies and Services Catalog - CATMAT Defines specifications and quality standards for supplies and services purchased by the Government, adopting the Federal Supply Classification criteria.Defines specifications and quality standards for supplies and services purchased by the Government, adopting the Federal Supply Classification criteria. 45 thousand supply items already catalogued, organized into 13 thousand supply lines and 2 thousand service lines45 thousand supply items already catalogued, organized into 13 thousand supply lines and 2 thousand service lines

16 Management Information Data warehouse – Aggregated data on government purchases for monitoring of indicators.Data warehouse – Aggregated data on government purchases for monitoring of indicators. Comprasnet Bulletin – monthly statistical information on current expendituresComprasnet Bulletin – monthly statistical information on current expenditures

17 Federal Government Procurement Portal COMPRASNET PGFNSRFSTNNAT. PRESSFGTSINSS SIASG CORPORATE SYSTEMS SIAFI SUPPLIERS MANAGEMENT UNITS SOCIETY

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19 Some data on SIASG/ Comprasnet in 2001 Accesses on the Portal: 2,400,000 (average monthly – 300,000)Accesses on the Portal: 2,400,000 (average monthly – 300,000) Tenders posted: 29,092 (in 2001)Tenders posted: 29,092 (in 2001) Suppliers registered: 170,000 (December 2002)Suppliers registered: 170,000 (December 2002) Subscribers: > 40,000 suppliers (September 2002)Subscribers: > 40,000 suppliers (September 2002) Tenders published: 160 a day (average of 2002)Tenders published: 160 a day (average of 2002) Total tenders published in 2001: 41,549Total tenders published in 2001: 41,549

20 Information and Services available at COMPRASNET Public access through the InternetPublic access through the Internet Linked to (Government Network)Linked to (Government Network) Electronic inverse biddingElectronic inverse bidding Live inverse biddingLive inverse bidding Electronic Price QuotingElectronic Price Quoting Price of purchase registrationPrice of purchase registration Publications and legislationPublications and legislation Complete bidding documentsComplete bidding documents Tender announcementsTender announcements

21 Information and services available at COMPRASNET Tender resultsTender results Contract statementsContract statements SICAF Payment FormSICAF Payment Form by interest profile/Preference Lists by interest profile/Preference Lists Specialized forumSpecialized forum Payment gatewayPayment gateway

22 Examples of Transparency and Social Control Electronic Price Quoting (e-shopping)Electronic Price Quoting (e-shopping) Tender AnnouncementsTender Announcements Inverse Auctions AgendaInverse Auctions Agenda Inverse Auctions UnderwayInverse Auctions Underway Inverse Auctions Results: Aid MemoirsInverse Auctions Results: Aid Memoirs

23 Electronic Price Quoting

24 General View

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26 Tender Posting

27 General View

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31 Inverse Auction Agenda

32 Legal Framework Law nº 8.666, 1993Law nº 8.666, 1993 Provisional Measure n.º 2.026, de 4/5/2000Provisional Measure n.º 2.026, de 4/5/2000 Decree nº 3.555, de 8 of August of 2000Decree nº 3.555, de 8 of August of 2000 Decree nº 3.693, de 2 of December of 2000Decree nº 3.693, de 2 of December of 2000 Decree nº 3.697, de 21 of December of 2000Decree nº 3.697, de 21 of December of 2000 Decree nº 3.784, de 6 of April of 2001Decree nº 3.784, de 6 of April of 2001 Law nº , de 17 of July of 2002Law nº , de 17 of July of 2002

33 Inverse Auction and Virtual Inverse Auction Background information on the adoption of the new mode of procurementBackground information on the adoption of the new mode of procurement Operational proceduresOperational procedures Impacts of the use of the reverse auctionImpacts of the use of the reverse auction

34 Increased competitionIncreased competition Ease of useEase of use Transparency and Social Control GuarantiedTransparency and Social Control Guarantied Increased participation opportunitiesIncreased participation opportunities Use of new technologiesUse of new technologies Advantages of the Inverse Auction

35 Inverse Auction New tendering modality, introduced in August 2000New tendering modality, introduced in August 2000 Allows direct confrontation between suppliersAllows direct confrontation between suppliers Successive bids are made until a winner is announcedSuccessive bids are made until a winner is announced There are two forms:There are two forms: –Live inverse bidding –Electronic inverse bidding

36 Inverse Auction Use Procurement of common goods and servicesProcurement of common goods and services Performance and quality standards objectively defined in invitation for bidPerformance and quality standards objectively defined in invitation for bid COMMON GOODS Office supplies Furniture General appliances Equipment Fuels and lubricants Microcomputers COMMON SERVICES Cleaning, security and maintenance Renting and maintenance of equipment Meal voucher Telephony Transport Health insurance EXAMPLES

37 Electronic Inverse Auction STAGES I - AnnouncementI - Announcement II - QualificationII - Qualification III - Registration of proposalsIII - Registration of proposals IV - Presentation of bidsIV - Presentation of bids V - AwardV - Award

38 II - QUALIFICATION Interested suppliers are previously qualified by the administrator of the electronic inverse auction systemInterested suppliers are previously qualified by the administrator of the electronic inverse auction system They receive access codes that allow participation in any reverse auctionThey receive access codes that allow participation in any reverse auction

39 Suppliers View

40 General View

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42 III - REGISTRATION OF PROPOSALS Bidders make their price proposals through the Internet, on the day and time defined on the Invitation to BidBidders make their price proposals through the Internet, on the day and time defined on the Invitation to Bid the inverse auction begins with the opening of the proposalsthe inverse auction begins with the opening of the proposals

43 Suppliers View

44 Inverse Auctions Underway

45 IV - PRESENTATION OF BIDS Bidders can make their bids on the InternetBidders can make their bids on the Internet the system only accepts prices that are lower than the lowest initial proposal or the previous bidthe system only accepts prices that are lower than the lowest initial proposal or the previous bid the bidding stage may be concluded in two ways:the bidding stage may be concluded in two ways: 1. Randomly 2. Upon the reverse auctioneer's decision decision

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47 Suppliers View

48 General View

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51 Inverse Auctions Aid Memoirs

52 V - AWARD The winner is announced immediately on the electronic system (Aid Memoirs of the session)The winner is announced immediately on the electronic system (Aid Memoirs of the session) the winner must prove eligibility to supply to the Federal Governmentthe winner must prove eligibility to supply to the Federal Government the system posts the results of all approved reverse auctionsthe system posts the results of all approved reverse auctions

53 General View

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69 Tender Results

70 General View

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74 Inverse Auction Simulator

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76 Impacts of the Inverse Auction Total expenditure on procurement of goods and services: R$ 14,2 (US$ 5.7) billion/year (2002 – US$ 1.00 x R$ 2,50)Total expenditure on procurement of goods and services: R$ 14,2 (US$ 5.7) billion/year (2002 – US$ 1.00 x R$ 2,50) Out of this total, 20% has been procured by means of inverse auctions - amounting to R$ 3,1 (US$ 1.24) billion/yearOut of this total, 20% has been procured by means of inverse auctions - amounting to R$ 3,1 (US$ 1.24) billion/year Estimated direct economy in 20 % of the expenditures, i.e. R$ 620 (US$ 248) million/yearEstimated direct economy in 20 % of the expenditures, i.e. R$ 620 (US$ 248) million/year

77 Impacts of the Inverse Auction Number of Inverse Auctions: until December of ,550Number of Inverse Auctions: until December of ,550 Value of goods and services acquired: R$ 1,953 billion (US$ million)Value of goods and services acquired: R$ 1,953 billion (US$ million)

78 Inverse Auctions Awarded: until August of 2002* YearType of Auction Numbar of Auctions Value in R$ 2000Live ,09 Electronic , Live2, ,00 Electronic , Live5,8611,071,934, Electronic30856,417, Total 8, ,83 Source: Monthly COMPRASNET Statistical Bulletin

79 Services acquired by inverse auction: main by value

80 Materials acquired by inverse auction: main by value

81 Impacts of the Inverse Auction The purchases by means of the reverse auction may reach 40 % of the total contracts undertaken by means of competitive bidding (around R$ 5.7/ US$ 2.3 billion a year)The purchases by means of the reverse auction may reach 40 % of the total contracts undertaken by means of competitive bidding (around R$ 5.7/ US$ 2.3 billion a year)

82 Impacts of the Inverse Auction Increased amount of purchases made under competitive modalitiesIncreased amount of purchases made under competitive modalities More transparency and opportunities to participateMore transparency and opportunities to participate More agile and non bureaucratic proceduresMore agile and non bureaucratic procedures Suppliers pre-register only onceSuppliers pre-register only once Reduction in the time required for Qualification of suppliersReduction in the time required for Qualification of suppliers Less time required for tenderingLess time required for tendering Electronic posting of tender with ample access by the interested partiesElectronic posting of tender with ample access by the interested parties Staff freed for more complex activitiesStaff freed for more complex activities

83 Inverse Auction in the States Law /2002 has extended use of the inverse auction by states and municipalitiesLaw /2002 has extended use of the inverse auction by states and municipalities Several States (São Paulo, Bahia, Pernambuco, Mato Grosso etc.) developed, bought or entered into partnerships of their own inverse auction systemsSeveral States (São Paulo, Bahia, Pernambuco, Mato Grosso etc.) developed, bought or entered into partnerships of their own inverse auction systems

84 Brazilian cooperation initiatives on government procurement

85 Cooperation initiatives Underway Multilateral initiatives (World Bank, IADB, OAS)Multilateral initiatives (World Bank, IADB, OAS) Bilateral initiatives (Governments of Bolivia, Peru, Colombia, Nicaragua, Paraguay, Argentina, India etc.)Bilateral initiatives (Governments of Bolivia, Peru, Colombia, Nicaragua, Paraguay, Argentina, India etc.) States and municipalitiesStates and municipalities National & international recognition (COMDEX, CONIP, Hélio Beltrão Prize European Union e-gov Best Practice, UN- UNOPS Fair of July 2001, B2B Best Practices in e-commerce.)National & international recognition (COMDEX, CONIP, Hélio Beltrão Prize European Union e-gov Best Practice, UN- UNOPS Fair of July 2001, B2B Best Practices in e-commerce.)

86 Possible Cooperation initiatives PlanningPlanning LegislationLegislation Human Resources TrainingHuman Resources Training IT Information systems modellingIT Information systems modelling Experience interchangeExperience interchange Standards for procurement procedures and bidding documents and regulationsStandards for procurement procedures and bidding documents and regulations

87 Marcos Ozorio de Almeida Secretariat of Logistics and Information Technology Ministry of Planning, Budget and Management Tel: Fax:


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