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Electronic Procurement

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Presentation on theme: "Electronic Procurement"— Presentation transcript:

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

2 Federal Government Guidelines
Less red tape Efficient processes Standard procedures Support information tools for the public manager Managerial controls on expenditures Increased Competition on tenders Cost Reduction Transparency

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

Modules Characteristics ITC & interactivity incorporation on the Internet Managerial tools facilities Transparency, accountability and social control characteristics Some statistics on procurement of goods and services Facilities offered

5 General Services System - SISG
Other Branches States and Municipalities

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) Provides fast and unbureaucratic pre-registration of Federal Government suppliers Allows pre-registration through internet “SICAFWeb” 170 thousand registered suppliers 2,000 new registrations a month

8 Number of Suppliers Registered
Year 1997 1998 1999 2000 2001 2002 Number of Suppliers 61.113 84.701

9 Types of Suppliers Registered
Type of Supplier Professional Micro Enterprises Small Enterprises Others Total Reg. until 1997 7.106 12.892 20.058 21.057 61.113 Reg. until 1998 10.367 19.195 26.895 28.244 84.701 Reg. until 1999 14.124 25.816 31.589 35.034 Reg. until 2000 17.811 32.712 36.407 43.454 Reg. until 2001 21.353 39.715 40.115 49.417 Reg. until 2002 24.956 45.869 44.211 55.077

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

11 Tenders Announced by SIDEC
Year 1997 1998 1999 2000 2001 2002 Of. Journal 660 1.958 7.779 11.307 12.457 13.379 Comprasnet 1.400 4.068 17.994 26.055 29.092 25.331

12 Integrated Price Posting System - SISPP
Registers 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 convenience

13 Contract Management System– SICON
Allows 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 - SIAFI Ensures 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. 45 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. Comprasnet Bulletin – monthly statistical information on current expenditures

17 Federal Government Procurement Portal


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

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

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

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

23 Electronic Price Quoting

24 General View

25 General View

26 Tender Posting

27 General View

28 General View

29 General View

30 General View

31 Inverse Auction Agenda

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

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

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

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

36 Inverse Auction Use Procurement of “common goods and services”
Performance and quality standards objectively defined in invitation for bid EXAMPLES 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

37 Electronic Inverse Auction
STAGES I - Announcement II - Qualification III - Registration of proposals IV - Presentation of bids V - Award

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

39 Supplier’s View

40 General View

41 General View

Bidders 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 proposals

43 Supplier’s View

44 Inverse Auctions Underway

Bidders can make their bids on the Internet the 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: 1. Randomly 2. Upon the reverse auctioneer's decision


47 Supplier’s View

48 General View

49 General View

50 General View

51 Inverse Auctions Aid Memoirs

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

53 General View

54 General View

55 General View

56 General View

57 General View

58 General View

59 General View

60 General View

61 General View

62 General View

63 General View

64 General View

65 General View

66 General View

67 General View

68 General View

69 Tender Results

70 General View

71 General View

72 General View

73 General View

74 Inverse Auction Simulator


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) Out 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/year

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

78 Inverse Auctions Awarded: until August of 2002*
Year Type of Auction Numbar of Auctions Value in R$ 2000 Live 81 ,09 Electronic 1 67.120,00 2001 2,236 ,00 63 ,96 2002 5,861 1,071,934,336.28 308 56,417,596.69 Total 8,550 ,83 Source: Monthly COMPRASNET Statistical Bulletin

79 Services acquired by inverse auction: main by value

80 Materials acquired by inverse auction: main by value
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)

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

83 Inverse Auction in the States
Law /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 systems

84 Brazilian cooperation initiatives on government procurement

85 Cooperation initiatives Underway
Multilateral initiatives (World Bank, IADB, OAS) Bilateral initiatives (Governments of Bolivia, Peru, Colombia, Nicaragua, Paraguay, Argentina, India etc.) States 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.)

86 Possible Cooperation initiatives
Planning Legislation Human Resources Training IT Information systems modelling Experience interchange Standards 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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