Chile s E-procurement E system: Transparency, effiency and PPP Claudio Orrego Larraín Ex Ministro de Estado Ex Secretario Ejecutivo del Comité de Modernización del Estado
Contents of the presentation 1. Original Diagnosis 2. Rationale and Strategy 3. What is the system about? 4. New features under development 5. Comercial Model of Chile 6. Some Conclusions
Diagnosis of Public Procurement in Chile US$ 7000 MM of public spending annualy on procurement, with more than 1.4MM transactions, and US$ 12 MM in newspaper advertising Highly bureaucratic, inefficient and overstaffed central procurement agency Some, but isolated, cases of corruption Incoherent and disperse procurement regulations Lack of modern guidelines and trained human resources in government procurement Lack of use of IT, and a growing sence of lack of transparency and accountability If not broken why fix it?
Rationale for a procurement reform 1. Visible and effective anti-corruption measure 2. Great potentials for government savings (both from more competition and efficiency) 3. Institutional rationalization 4. Get a modern, common and simple legal framework 5. Masification in the use of IT, both within government and the private sector 6. A good practice for free trade agrements
Reform Strategy 1. Joint study with the Budget Office on potential savings (conservative estimates of MM US$ 200) 2. Creation of an interministerial board for the reform (new bill, strategy to close the central procurement agency, e-procurement benchmark) 3. Public bidding to design a prototype for an e- information system and a pilot program with 12 agencies (IT innovation grant) 4. Presidential decree mandating the use of the system by every agency, and training program. 5. Public Bidding to get a private sector administrator and strategic IT partner (consortium of SONDA, Microsoft and Compaq).
What is www.chilecompra.cl chilecompra.cl? It is a system through which you can publish, store, distribute and analyze information on public procurement. It s most salient features are: Supliers Registry Generation of a bidding Generation and analysis of bids Advertising Multilanguage Products Catalog Incorporation of offers and bids Adjudication report Reverse Auction Site administration Reports Selling of Bidding Conditinos
Comperative advantajes over other models Chile Compra Otros Actualmente soporta la orientación al proceso, manteniendo las funcionalidades de registro Notificaciones Vía Correo Electrónico Estructura de rubros paramétrica de hasta doce niveles Multiples Lenguajes (parametrizado) Venta de Bases Soporte estructurado al proceso de consultas y respuestas. Estructura Genérica de Catálogo Sólo orientación al registro No soportado Máximo de Tres niveles Una sóla modalidad no paramétrica Similar funcionalidad Soporte sólo en base a manejo de documentos inestructurados No Soportado Conexión con sitio de servicios de valor agregado con intercambio electrónico de documentos Simplicidad en el uso y manejo de la interfaz Mayor Gama de Servicios de Consultoría a menores costos No Soportado Estructura más rígida, no parametrizada Soporte limitado, costos de implantación no conocidos con claridad
New Features Being Developed Links with other systems and public agencies Renewal of Categories of products and services Structured process for questions and answers Supliers Assesment Improvement in different bidding stages Complete structure of the processcycle Administration of contents Digital signature and complete procurement
Chile s Comercial Model Www.Sitioaccesorio.cl WWW.CHILECOMPRA.CL TRANSACCION ÁMBITO PRIVADO OFERENTES LICITACIONES / COTIZACIONES / ACUERDOS MARCO DEMANDANTES PRIVADOS ESTADÍSTICAS DEMANDANTES GOBIERNO Revenue from services of the value added site Free access to all services
Chile s Comercial Model PLATAFORMA SERVICIOS DE HOSTING WWW.SITIO2.COM WWW.CHILECOMPRA.CL INFO. A DISPOSITIVOS MÓVILES INTERMEDIACIÓN ELECTRÓNICA OFERENTES PUBLICACIÓN DE ADQUISICIONES INTERMEDIACIÓN ELECTRÓNICA CATALOGO DE PRODUCTOS INTELIGENCIA DE MERCADO TRANSACCION ÁMBITO PRIVADO LICITACIONES / COTIZACIONES / ACUERDOS MARCO CATALOGO DE PRODUCTOS ANÁLISIS ESTADÍSTICO STORE FRONT / INTEGRACIÓN INTEGRACIÓN DEL BACKEND DEMANDANTES PRIVADOS DEMANDANTES GOBIERNO EVALUACIÓN DE OFERENTES ADMINISTRACIÓN DE CONTENIDOS SERVICIOS DE CONSULTORÍA ebusiness
The Value Added Site (or how to make it good business?) Wireless notification of new biddings Statistical and management information: Market knowledge Management of contents and market knowledge Integration of backoffice systems and other services Generic catalog ASP of Virtual shops and product catalogs Personalized management of communities Personalized administration of contents Paid publicity
Algunas Estadísticas En los últimos meses se anotan la siguientes cifras: ESTADÍSTICAS CHILECOMPRA.CL Marzo Abril Mayo TOTAL Demandantes Inscritos 97 101 108 108 Oferentes Inscritos 3.095 3.553 4.002 4.002 Total de Visitas al Sitio 13.750 19.670 24.962 60.000 Total cotizaciones 2.273 2.285 3.483 3.483 Montos Transados USD$ 2.521.190 1.077.348 907.000 4.505.538 Monto Total Transado Desde el Lanzamiento del Sitio en Diciembre 2000: [USD] 8.913.933
Arquitectura Nivel de Balanceo de Carga E-Government in Developing Countries: Achievements and Prospects Nivel de Servidores de Aplicación Nivel de Servidores de Datos Microsoft Windows NT Server Microsoft Windows 2000 AD Server SQL Server
Visión del Proceso: Como E-Government in Developing Countries: Achievements and Prospects Relacionarse con Otras Comunidades.COM CHILE COMPRA BASE DE DEMANDANTES - REQUERIMIENTOS - OFERTAS - RESULTADO - ANÁLISIS CONSOLIDADO CONSOLIDADO MS BizTALK.COM #1 XML Solicitud XML Oferta. - OFERTAS (k)...com #n - REQUERIMIENTOS.COM #2.COM #3.COM #4 - ESTADO DE ADJUDICACIÓN....COM #k BASE EXTENDIDA BD 1 BD 2 DE PROVEEDORES BD 3 BD n
Preliminary Conclusions Positive Aspects: Great political and public opinion support Pacific elimination of the procurement agency Administration costs covered by the private sector Real savings (between 7 to 20%), even before complete electronic procurement process A strong sign of the government s commitment with transparency, strategic use of IT and with modernizing the State (non ideological aproach) Positive spillovers in terms of Internet use Strong asset for free trade negotiations
Preliminary Conclusions (continue) Negative aspects: Slow process of incorporating private firms and public agencies Underestimation of training needs (both in IT and procurement) and labor resistance Weakness of the responsable institution Fear of local or regional enterprises, have created some political concern. To centered on executive and central agencies (we need to cover local gov. and other institutions).
THANK YOU!! Claudio Orrego L. claudio.orrego@sonda.com orrego@interactiva.cl