Brazil Electronic Government Procurement ExpoXangai – feb/2010 MINISTRY OF PLANNING Secretariat of Logistics and Information Technology Brazilian Government Procurement

WHO AM I? Name: CARLOS HENRIQUE DE AZEVEDO MOREIRA Education: CIVIL ENGINEER POST GRADUATE IN PHILOSOPHY OF EDUCATION M. Sc. SYSTEMS ENGINEERING AND COMPUTER SCIENCE From: BRAZIL - MINISTRY OF PLANNING, BUDGET AND MANAGEMENT Position: DIRECTOR OF LOGISTICS, WORKS WITH PUBLIC PROCUREMENT SINCE 2000 MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

GOALS OF THIS PRESENTATION TALKING ABOUT: The Brazilian experience in procurement Regulations Information Systems Electronic Procurement, Information Technology structure Results, options, strategies Lessons learned MINISTRY OF PLANNING

BRAZIL´s Context Territory Extension 27 states; 8.5 million km2; large social and infrastructure variations Administrative Organization (spheres) Union, states and municipalities Unique competitive bidding act (Act.8.666) Federal Executive structure Ministry of Planning, Budget and Management Secretariat for Logistics and Information Technology MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

Federal Constitution The Brazilian Constitution is a codified and partially entrenched text with over 200 articles, due to the characteristics of Roman law. Among other ample issues, it states that the whole body of the Public Administration in Brazil must abide by the laws and regulations of government procurement procedures, except for a list of special cases that can either be waived or deemed as inapplicable (i.e.: emergencies and disasters, war, Intelligence agencies, Armed Forces, etc).

Act This Act establishes general rules on government procurement for every sphere of the Federation (Federal Government – or Central Government; the states; the Federal District and the municipalities). It also states some of the principles under which government purchases must be held: isonomy, reverse auction, promotion of sustainable national development, legality, impartiality, morality (honesty), equality, publicity, abidance by the procurement notice, public awarding to the winner.

Act Procurement modalities in Brazil: I - competitive bidding; II - request for quotes; III - request for proposals; IV - public contest; V - auction.

Act Competitive bidding – for purchases and contracts ranging between R$ ,00 to R$ ,00 and above. Request for quotes – for purchases and contracts ranging between R$ ,00 and R$ ,00 (for engineering works and services) or from R$ ,00 to R$ ,00 (for purchases and services).

Act Request for proposals – An invitation to participate in the bidding process is sent directly to at least three suppliers. For purchases and contracts from R$ ,00 to R$ ,00. Public contest – for technical, scientific or artistic works. The winners are awarded prizes or prizes in cash as previously defined in the procurement notice. Auction – designed for the sale of used assets no longer useful to the Administration; products legally seized; or Federal Government's estates.

Act Procurement proceedings may be deemed as inapplicable: I - for the acquisition of equipment that can only be supplied by an exclusive (single) supplier; II - for contracting specialized technical services; III - when contracting with artists.

Law Reverse auction – used for purchasing goods and common services; Can be held through electronic means.

The Comprasnet & SIASG Architecture Technologies Requirements System Archtecture Monitoring Administration Services Services Level Agreement (SLA)

The Comprasnet & SIASG Architecture Government Purchases Sub-systems Government Procurement Publicity The Comprasnet & SIASGnet Portals Evolution of Government purchases through Electronic Reverse Auction Systems Architectures Monitoring Services management Service Level Agreement Management (SLA) Requirements & Technologies

Windows Architecture The Comprasnet & SIASG Architecture

Windows Architecture The Comprasnet & SIASG Architecture INTELLIGENT WEB BALANCING + EXCLUSIVE ZDM INTERNET SITE TRONCO INTERNET COMPRASNET FIREWALL ROTEADOR DE BORDA BALANCEAMENTO DE CARGA + CONCENTRAÇÃO LAN ZDM COMPRASNET SERVIDORES WEB - COMPRASNET.GOV.BR SERVIDORES BANCO DE DADOS Gigabit Ethernet Mbps Sentido comunicação usuários Sentido comunicação web - BDs Legenda

Linux Environment The Comprasnet & SIASG Architecture

Mainframe Environment The Comprasnet & SIASG Architecture

Infrastructure The Comprasnet & SIASG Architecture

Infrastructure The Comprasnet & SIASG Architecture

Technology High Availability Database Cluster File server cluster Load balance (CSS) Hardware Blades Rack Storage High Availability High speed Raid Lan Free Backup Softwares SQL Server PostgreSQL Windows Linux RH The Comprasnet & SIASG Architecture

Monitoring The Comprasnet & SIASG Architecture

Monitoring The Comprasnet & SIASG Architecture

Customer Services Central The Comprasnet & SIASG Architecture SERPRO – SERPRO Services Central (24 X 07) 1st level 2nd level – specialized customer services 0800 Exclusive Line Access via WEB Form Access via

Services Central The Comprasnet & SIASG Architecture

Incident Management The Comprasnet & SIASG Architecture The MSW, known as The Robot, works on Linux platform in both internet and intranet environments, showing the following alerts: Service available Connecting Ocasional error (unstable situation) Frequent error (critical situation)

Service Level Agreement Management (SLA) The Comprasnet & SIASG Architecture Daily monitoring of SLA. Coordination of the virtual Situation Room – interaction w/ Operations and Development to solve highly critical incidents. Management Reports. Coordination Situation Room/Command center. Support to the implementation of new services.

The Comprasnet & SIASG Architecture SLA per architecture Supported users and transactions volume Service availability Technical support availability Incident recovery Load Balance, Cluster and servers quantity Service center Service desk community Systems development and support Training Security management Service Level Agreement Management (SLA)

Procurement Nowadays: Mandatory use for Central government Suppliers – must register; system keeps records of participation and compliance of taxes Reverse auction (since 2000) Live auction Electronic auction physical (live) paradigm communication infrastructure MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

Quantity and value contracted, by type of tender – 2009 (USD) MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

Percentage of value contracted, by type of tender – 2009 MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

Price Contracted, by item type and year – 2002 to 2009 MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

Share on purchase values, by economic sector and year – 2002 to 2009, Jan-Dec MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid. Annual Variation on buying processes of common goods and services, by type of tender¹ – 2002 to 2009 MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid. Annual Variation on buying values of common goods and services, by type of tender¹ – 2002 to 2009 MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

ABC Curve on buying values of material groups from the Reverse Electronic Auction –2009 MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

ABC Curve on buying values of services groups from the Reverse Electronic Auction – 2009 MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

OECD - Performance Indicators

SUPPLIERS MATERIALS / SERVICES PUBLISHING RESULTS / REGISTERED PRICES COMMITMENT CONTRACT EXECUTION REVERSE ACTION Procurement System Public Session SIAFI Procurement Datawarehouse TRANSFER TO OTHER SPHERES

Official Journal SIASG SIDEC Official Press UASG / Purchases Units Supplier Adds at Reverse Auction Notice Adds at Consults Auction Notices Adds at Adds to Government Procurement Publicity The Comprasnet & SIASG Architecture

The Comprasnet Portal The Comprasnet & SIASG Architecture

Some Numbers MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

Systems – Cronology: List of Suppliers (1995) Material Catalog (1995) Electronic Publication (1997) Reverse Live Auction (2000) Reverse Electronic Auction (2000) Automatic Commitment (2001) Other Systems Integration (2002) Price Registration System (2002) (Framework contracts) Preferential treatment to small businesses (2006) (*) IDB and IBRD accept Brazil´s electronic action (2007) MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

Perspectives: Standardization and Scale Green purchases Changes in the Public Procurement Law: Reverse Auction for works under USD 3.4 millions; Use of IT in all types of tenders. MINISTRY OF PLANNING Secretariat of Logistics and Information Technology

Using Purchasing Power In recent years, the Brazilian Government has used the purchasing power to promote public policies: Supplementary act and Decree – incentive to the recruitment of small businesses (exclusive auctions; preference criteria in the event of a tie). Act and Decree – incentive to companies that invest in technology development in Brazil (preference criteria in the event of a tie). Normative Instruction define criterias to sustenability

Share on purchase values, by economic sector and year – 2002 to 2009, Jan-Dec Gráfico MPEs Secretariat of Logistics and Information Technology

Lessons Learned: It is important to start gradually (virtuous circle) People are the most important value You must have political support MINISTRY OF PLANNING

Electronic Procurement is not a PANACEA; it is an incremental process. Every journey begins with the first step, … …but its easier when you know a good way MINISTRY OF PLANNING