towards yemen e-procurement - oecd. · pdf filetowards yemen e-procurement ... this would...

الجمهورية اليمنيــة

Towards Yemen e-Procurement

Yehya Al-Ashwal

Chairman of the Technical Committee

the High Tender Board (HTB)

(Yemen Public Procurement)


Background

With the support of international donors, the Government of Yemen (GoY) is engaged in a program of wide reaching procurement reform across all government purchasing departments. GoY has made important progress

• This program has started with the creation of a new Procurement Law, Bylaw, Guidelines and SBDs which is now being implemented across government.

• A new Procurement Policy & Monitoring Board (HATC) has been established proposed to create a “centre of excellence” for Government Procurement.


Towards Yemen Sustainable Procurement Reforms

• Procurement Staff in a range of Ministries have been trained in the new procedures.

• There is recognition that IT systems can assist with the procurement process and producing accurate & transparent Management Information.

• Some Entities have started to develop systems to help them in the procurement area.

• An important element in the procurement reform program is the acquisition of a Procurement Management Information System (PMIS).

Background


5 systems currently in use in purchasing departments have been briefly reviewed

– All have been developed by staff in the department

– All the systems are attempting to support the same functions

– There has been very limited opportunities for Staff in different departments to learn from each other

– There is a lot of duplication.

– All the systems are still under development

– IT Support is also variable and sometimes at risk of failure.

Current Position of Procurement Systems


SYSTEM TYPE

E- Procurement

Procurement

Management

Monitoring

& Tracking

Financial

Monitoring

Rural

Access

Project

PEC Urban

Water

Project

Public

Works

Project

Social

Fund


4 generic types of Procurement System which are available for development or purchase are described.

Type 1: Procurement Financial Monitoring System.

Type 2: Procurement Monitoring & Tracking System.

Type 3: Procurement Management System.

Type 4: E-Procurement System.

– 2 types are rejected quickly as being unsuitable to overcome the challenges: type 1and type 4: E-Procurement System

– 2 types are explored in more detail: type 2and type 3

الجمهورية اليمنيــةPhases

System Types

Pilot Other

Ministries

Governorates

Districts

1. Procurement Financial Monitoring MIS System

2. Procurement Monitoring & Tracking MIS System

3. Procurement Management System

4. E-Procurement System

Simple Complex


• System Types 1 & 4 are rejected for the following reasons:

• System Type 1: Procurement Financial Monitoring System is rejected because: – All Purchasing Departments visited already have systems

which are more capable than this – Implementation of this system type would mean of loss of

existing system support • System Type 4: E-Procurement System is rejected

because: – This would require further change to the new Procurement

Law and Procedures. – It is not believed that many Yemeni Suppliers are yet

capable of responding in a totally electronic trading environment. This would therefore favour foreign Suppliers

– This system type requires more sophisticated and therefore expensive technology


It was recommended that:

– The Procurement Monitoring & Tracking System be rejected.

Because enhancing an existing GoY Package appears cheaper in the short & medium terms but a commercially available package will provide longer term savings and benefits.

– A comprehensive Procurement Management System is implemented.

– Which ever sourcing option is selected a phased implementation also recommended.


10

The objectives of PMIS Project

• The overall objectives of the PMIS Project is to replace existing manual and electronic systems in GoY Purchasing Departments to support and reinforce the Procurement Law no.(23) 2007 Tenders, Biddings & Government Storehouse and to develop existing procurement capacity and capability.


11

•Leading to

•Reduction in processes

•Increase the investment.

•A step towards e-procurement

Why PMIS is important for Yemen


12

Technology alone does not solve the problem…

ProcessPeople

Technology

• Training in new processes and systems is essential

• Capacity Building in Purchasing & IT Departments is required

• Any change programme involving IT must incorporate the three shown key elements. If any one element is left behind the programme is at high risk of failure.


13

YEMEN PMIS: System Overview

Primary Information Flows Initial Primary Information Flows

PMIS

Governorate

Projects

Districts

Ministries

Donors

AFMIS

Min Finance

Web Sites

Central

Bank of Yemen

HATC

Suppliers

Min Planning

HTB


Program Plan

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Web Site Development

PMIS

Requirements & Assessments

Decisions & Procurement

Configuration & Customisation

Phase 1 Implementation




Centre of Excellence

Year 1 Year 2 Year 3


15

Requirements

+Source

finance

Procurement

Plans

+ BiddingEvaluation Contract

Implementation

fulfillment

Invoicing

Payment

Completion

Approvals

Financial Monitoring

Report and Documents

InterfacesHigh Level System Scope

Diagram


16

Expected Outcomes

Centralized database of Public Procurement

Standard way of carrying out the procurement with Standard document templates

Efficiency gain with the Procurement Workflow

Effective Monitoring and Evaluation


17

Project Approach & Plan

Stage 1: Feasibility Study – completed

Stage 2: Functional Requirements Analysis – completed

Stage 3: Procurement – two stage Bidding , almost finished stage one (technical ) for stage two planned completion Aug . 2010

Stage 4: Implementation: Phase 1: Pilot sites

Phase 2: all ministries

Phase 3: Governorates


18

COMMERCIAL PROCUREMENT PACKAGE SYSTEM

• GoY has accepted the findings of a PMIS feasibility study undertaken by Crown Agents in 2006 which recommended the acquisition of a commercial procurement package system.

• Work has commenced on the acquisition process and the requirements analysis has been completed and a 2 stage international competitive bidding process for a pilot phase is currently underway.


19

Project Approach & Plan Phase 1: Pilot sites

The pilot duration is estimated to be one year and Six

month and will include the following sites, as listed below Core sites • HATC • HTB • Ministry of Finance • Ministry of Planning & International Cooperation Pilot sites • Ministry of Telecommunications • Ministry of Education • Ministry of Public Works & Highway • Sana’a Municipality (Governorate)


20

Challenges

Getting simple, user friendly system as appropriate,

Change management

Infrastructures

Building capacity


21

THANK YOU


• System Type 1 Procurement Financial Monitoring System: Overview

– Basic Financial & Volume Data.

– Data may be captured on paper or in spread sheets by purchasing bodies

– Submitted monthly? to HTB/HATC

– Consolidated in to simple database in HTB/HATC

– Reports produced for Donors and Ministry of Finance

– Interface to AFMIS

– No networks required

– Electronic data transfer not essential

– Relatively cheap & very simple

– BUT

– Does not provide audit trails and control of procurement activity

– Limited Information and risk of mis-information

– This system does not help Buyers buy


• System Type 2

Procurement Monitoring & Tracking MIS System: Overview

– Financial & Volume Information

– Time Tracking: Planned vs Actuals

– May be centralised or distributed database

– Data transferred electronically to HTB/HATC

– Flexible Reports produced for Donors and Ministry of Finance

– Interface to AFMIS

– Networks not essential but beneficial

– Improved control over quality of information than in Type 1

– Will introduce efficiency gains in Donor Report Production

– More expensive than Type 1 but less than Type 3

BUT

– Does not provide audit trails and control of procurement activity

– Requires “discipline” in purchasing bodies – effort is required

– This system does not help Buyers buy

الجمهورية اليمنيــة• System Type 3: Procurement Management System: Overview

– Full Procurement Life Cycle Processing

• Catalogues, Requisitions, Tenders, Bids, Bid Evaluation, Contracts, Expediting, Invoice Matching, Line Items, Commodity Coding, Approvals, Automated Document Production.

– Tracking & Audit Trails

• Who did what, why, when?

– Spend Analysis leading to greater negotiation leverage – leading to lower prices

– Flexible Reports produced for Donors and Ministry of Finance

– Interface to AFMIS and HTB/HATC Web Site

– Networks essential

– Improved control over quality of information than in Type 2

– Will introduce big efficiency gains in entire procurement life-cycle

– This system does help buyers buy

BUT

– Requires higher level of IT literacy by procurement and IT support staff

– More expensive than Types 1 & 2

– More complex than Types 1 & 2 requiring higher levels of training and capacity building

الجمهورية اليمنيــة• System Type 4: E-Procurement System: Overview

– Full E - Procurement Life Cycle Processing

• Catalogues, Requisitions, Tenders, Bids, Bid Evaluation, Contracts, Expediting, Invoice Matching, Line Items, Commodity Coding, Approvals, Automated Document Production.

– All the advantages of Type 3 and also…

– Fully Integrated with Web Site

– Electronic Links with Suppliers for exchange of Tenders, Bids, Contracts, Invoicing etc.

– Integrated electronic messaging and e-mail to improve communications between all parties

– E-Auctioning – enabling supplier to bid against each other on line

BUT

– Requires yet higher level of IT literacy by procurement and IT support staff than Option 3

– More expensive than Types 1 & 2 & 3

– More complex than Types 1 & 2 & 3 requiring higher levels of training and capacity building

– May require further changes to Procurement Law and Donor Rules to derive full benefit from functionality