contents 1.concept and service ………………….…………. 1 2.background of digitalization...
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Contents
1. Concept and Service ………………….…………. 1
2. Background of Digitalization ……………………. 4
3. Operational Performance ………….……………. 7
4. Achievements …………………………………..... 9
5. Factors for Success ……………………..………16
6. Latest Achievements ….…………………………21
7. Comparative Study ….……………………………22
1.1 A Cyber Market for the Entire Public ProcurementA single website for public procurement
- GePS provides integrated bidding information including detailed specifications and criteria for the evaluations, etc
- One-time registration enables participation in all bidding
1. Concept and Service
Online transactions- All processes are digitalized from purchase request, bidding, contract,
to payment, and information is provided online
- Accessible to information of 58 other institutions whose systems are linked with GePS, and one-stop service is available
Just by connecting to the Internet, public organizations and private businesses can process their procurement work online based on the autonomy of each procuring entities.
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1.2 Internal & External System Architecture
Public Organizations
(Buyers)
PPS Operation
Private Businesses(Suppliers)
Use
Certification-Related agencies
Ministry of Government
Administrationand
Home Affairs
Construction-related
Associations
Korea Financial Telecommu-
nications& Clearings
InstituteSuretyinsurance
Ministry of FinanceAnd Economy
Construction CALS
Linkage
Portal
Integratednotice
Commercial products catalogue
Contracted productscatalogue
Goods classification
system
e-Procurement systeme-Procurement systeme-Procurement ASPe-Procurement ASP
Supplier supporting serviceSupplier supporting service
Unit contract systemUnit contract system
Linkage
User registration E-Guarantee
Supplier’s Performance E-Payment
Documents distribution and outside linkage
1. Concept and Service
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Government contract
: Act on Contracts to which the State is A Party (ACSP)
- Regulations implementing ACSP: Executive orders, enforcement
rules issued by the Minister of Finance and Economy
- PPS has authority to interpret regulations regarding government
procurement and contract terms, starting from June, 2003
Local government, state-owned enterprises contracts
: subject to separate laws, but in most cases, ACSP is applied.
1.3 Legal Framework
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1. Concept and Service
2.1 To Enhance Public Trust by Improving Transparency & Efficiency
2. Background of Digitalization
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PPS e-procurement (EDI, 1997~2001)
- PPS adopted EDI to initiate e-procurement
• As a centralized procurement agency, PPS accounts for 30% of the entire public procurement
• E-procurement applied to procurement of goods and to the online shopping mall in 1997, expanded to construction and services in 2000, and upgraded from EDI to XML based on the Internet in 2000
In 1997, we started with 20 public organizations as users
• In 2001, digitalization extended to all work including bidding, contract, and payment
e-bidding service were shared on request with the other organizations
- Per-capita productivity rose by 75%(from 280 to 489 cases annually)
2.2 Steps to GePS (1/2)
2. Background of Digitalization
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Government-wide expansion (GePS, 2001~2002)
- Prompted as one of the 11 e-government projects
• Government-wide efforts made by creating a task force comprising relevant institutions and businesses
• Utilization enhanced by expanding participation and receiving various requests
- The GePS launched in October 2002 after the BPR/ISP for GePS started in July 2001
* BPR: Business Process Reengineering / ISP: Information Strategy Planning
- We built the DRS(Disaster Recovery System), DW(Data Warehousing), CRM(Cust
omer Relationship Management System), and Ubiquitous Service from 2003 to 2005.
2.2 Steps to GePS (2/2)
2. Background of Digitalization
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200,000 users from 30,000 organizations(buyers) and 150,000
businesses(Suppliers)
- Jointly used by all organizations from the central and local governments
to state-owned enterprises including all entities be
longing to themselves
Records a daily average of 100,000 website hits, and exchan
ge 100,000 documents online which, in the past, were delive
red via mail or in person
3.1 Utilization Volume
3. Operational Performance
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93% of all biddings were conducted online
- 18 millions businesses participated in 120,000 biddings
amounting to US$ 25 billion
Construction materials, software and office supplies, which are
regular purchase items of public organizations, were ordered
by one-click purchasing in the shopping mall according to
the unit costs, which were contracted by PPS
- US$ 7 billion for 500,000 orders
Other transactions of US$ 11 billion including private contracts
were made electronically
3.2 Transaction Volume (US$ 43 Billion annually, FY2004)
3. Operational Performance
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Raised productivity
- Saved annual transaction costs of US$ 3.2 billion
• US$ 2.9 billion of business expenses was saved in terms of
time and transportation (US$ 0.3 B for public organizations)
Improved transparency
- Achieved a crystal clear administration by providing information in real time
and expanding the provision of information
• Promoted fair competition by expanding bidding opportunities
- Reduced face-to-face contacts between businessmen and officials
4.1 Enhanced Procurement Administration
4. Achievements
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“I can reassign the employees’ duty because of GePS from the paper or
routine work to management or sales divisions for more productivity…” (a
CEO of a private enterprise)
“Before GePS, the time required for participating in a bidding took at
least half day, but now… only 1 minute is enough for the same work.
Our company participated in bids 2,000 times a year…”
(a clerk of a construction company)
“I used to check the gazettes and newspapers at all times for
information, but now, I start my day surfing GePS with a cup of morning
coffee…” (a businessman in charge of sales )
Appendices – Public offering for descriptions of user’s experience
GePS Influence on productivity for businesses
4. Achievements
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“Before GePS, we sometimes formed collusion with our rivals for
prearranged bidding in front of the bidding place … But now the chances
of such irregular practices are virtually non-existent…” (a clerk of a
construction company)
“I used to visit the agency for the contract process, so I sometimes felt
uncomfortable, pondering whether I had to give a gift to my clients or
not, but now I don’t need to visit the client, so I am happy with the newly
changed situation…” (a businessman in charge of sales)
Appendices – Public offering for descriptions of user’s experience
GePS Influence on transparency for businesses
4. Achievements
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Appendices – Public offering for descriptions of user’s experience
GePS Influence on productivity and transparency for public organizations
4. Achievements
“Before GePS, in some cases, over 1,000 participants came to attend just
one bid… in that case regardless of their job positions, all members of our
agency had to support the execution of the bidding from the registration to
bid opening for several days… But now I can finish all of my work alone at
my PC in ten minutes… A total of 210,000 people participated last year…”
(a city-official in charge of procurement)
“Because of the peculiar characteristics of procurement arising from
conflicting interests, citizens had doubts about transparency, however hard
we may have tried… But now, most of the biddings are implemented by
GePS. I feel citizens’ trust improving…” (a city-official in charge of procurement)
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Expanded the experience of E-Commerce
- Public organizations and businesses accumulated the e-procurement
experience and utilized it for online transactions
- Created an environment for PCs and the Internet, and fostered
the mindset for e-Commerce
Improved the security of E-Commerce
- Facilitated the establishment of infrastructure for digital signature
and security including PKI encryption
* PKI : Public Key Infrastructure
- Accelerated the application of digital signatures to ensure security
for private sector transactions
4.2 Leading the Development of E-Commerce
4. Achievements
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Received with the Public Service Award (UN, Jun. 2003)
Evaluated as the best e-government
service provider (OECD, May 2004)
- A strong pull-through effect on ICT use in the
private sector and no further actions are required
4.3 World’s Best E-Government Operator
4. Achievements
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Reflected the standardized process in the UN global standard (UN/CEFACT, Mar. 2005)
- Registration → Public Invitation → Tender/Opening Tender →
Publication of Award
4.3 World’s Best E-Government Operator
4. Achievements
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Best practice model for e-procurement from around the world
(UN, “E-government Readiness Index”, Nov. 2004)
- Accentuated the integrated portal approach
The model policy export case for Korea- Benchmarked by many countries including developed countries such as
Japan
- International collaboration with Pakistani and Vietnamese governments’
e-procurement projects
5.1 Overcoming Weaknesses
5. Factors for Success
Obstacles Strategies
Need for inter-governmental cooperation
Established government-wide promotion system
Difficulty in integrating user inputs for providing user-friendly service
Activated user input at the initial developmental stage
Digital Divide Well-developed infrastructure
- 16 -
5.2 Established Government-wide Promotion System
Operated an E-Government Special Committee as a top taskforce for building e-government (Jan. 2001 ~ Jan. 2003)
- Strong inter-governmental initiative
• The Committee assumed full management of e-government projects
• The President himself checked the progress of projects directly
through the committee
- Joint efforts by officials and private sector specialists in the Committee
• Public: Vice-ministers planning and budgeting
• Private: Specialists applying new ICT
5. Factors for Success
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- 11 projects for e-government under the principle of Selection and Concentration
• GePS is one of the projects: including government-wide civil service, education, national finance, tax, social insurance, integrated personnel management, etc
Top budgetary priority for the e-government
Fiscal Year 1998 1999 2000 2001 2002
E-Government Projects
Budget (US$ M) 223 271 333 420 489
Change(%) - 21.3 23.0 25.9 16.6
TotalBudget (US$ M) 90,283 98,065 106,087 119,418 124,966
Change(%) - 8.6 8.2 12.6 4.6
5. Factors for Success
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5.3 Integration of User Input
Best practice of collaboration
- Established the board of GePS development with 9 organizations under E-Government Special Committee
- A total of 90 organizations and businesses participating as a user or institutions linked with GePS
• Operated as advisory committees, trial boards, workshop members, etc
- Continuous practical training of users
• Built nation-wide education system for various organizations including regional offices and outsourced institutions
- Persuading users to promote voluntary use
• No more red tapes, no more corruption, no more waste of time, etc
Extension of use with PR
5. Factors for Success
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- Ranked first in terms of Internet connection
• 30 million Internet users(65.5% of the population), 11 million
households with broadband Internet subscribers(75%), etc
- No problem occurred in e-biddings with 30 million participants
Bridged the Digital Divide among different regions
and companies
5.4 Well-Developed Infrastructure
Encouraged technology development of e-commerce
by legislating and revising laws
- Digital Signature Act (Feb. 1999), Framework Act on E-Commerce
(Feb. 1999), Electronic Promotion Act on Administration Processes for
the Establishment of an e-Government (March, 2001), etc.
5. Factors for Success
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Face-to-face consultation services through a computer screen are provided by establishing Web Call-Center
Differentiated services are provided for each customer by introducing Customer Relationship Management (CRM)
6.1 Individually Customized Service(2004)
6. Latest Achievements
6.2 Focusing on the Ubiquitous Service(2005)
Mobile service channels shift away from the PPS homepage to wireless channels such as PDAs
Wireless e-bidding and property management through Radio Frequency Identification (RFID)
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- About 200 participants monthly through PDA
7. Comparative Study
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Pre Qualifications
Procurement Planning
Procurement Advertisement
Bidding
Selection of Successful Bidder
Closing of Contract
•Procuring agencies may engage in pre-qualification in case of service, civil work, turnkey project, expensive and technically complex equipment
Decision of Procurement
Performance of Contract and
Inspection
Opening of the Bids
Bidding Process
Project FS
Procurement Plan (package, types)
Bidding docs. For each package
Bid Announcement
Bid Opening
Bid evaluation
Review and approve bid results
Announce bid results
Each biddingprocedure
Project Procedure
Should be postedto the public byDecree 66 1.bulletin 2.website(future)
Contract
Closing of Contract
7.1 Standardized Process for Applying GePS Approach
Pakistan Vietnam
Integrate and share all information about government Procurement
Make a single e-Procurement system for all public organizations
Standardize procurement process and electronic document (XML)
with digital signature
Take the step-by-step approach from integrated bid information
and e-bidding
Need to make more clear rules and regulations according to the
reforming the process
7.2 Advices to Establishing e-Procurement System
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7. Comparative Study
Jae Yong Lee (jy41lee@pps.go.kr)
Director of Information Management Team
Public Procurement Service of Korea
(www.pps.go.kr / www.g2b.go.kr)
Thank You
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