brazil electronic government procurement expoxangai – feb/2010 ministry of planning secretariat of...

Brazil Electronic Government Procurement ExpoXangai – feb/2010

MINISTRY OF PLANNINGSecretariat 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


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 8666-93• 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 8666-93

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

Act 8666-93• Competitive bidding – for purchases and contracts ranging

between R$ 650.000,00 to R$ 1.500.000,00 and above.

• Request for quotes – for purchases and contracts ranging between R$ 150.000,00 and R$ 1.500.000,00 (for engineering works and services) or from R$ 80.000,00 to R$ 650.000,00 (for purchases and services).

Act 8666-93• 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$ 80.000,00 to R$ 150.000,00.

• 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 8666-93Procurement 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 10520-2002

• Reverse auction – used for purchasing goods and common services;

• Can be held through electronic means.

The Comprasnet & SIASG Architecture

Technologies

RequirementsSystem ArchtectureMonitoringAdministration ServicesServices Level Agreement (SLA)


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


Internet

BancosProdução

BancosHomologaçãoTreinamento

Produção(1) Produção(2)

Produção(3) Produção(4)

Treinamento

Homologação

Publicação

Desenvolvimento

Windows Architecture


INTELLIGENT WEB BALANCING + EXCLUSIVE ZDM

INTERNETSITE TRONCO

INTERNET

COMPRASNET

FIREWALL ROTEADOR DE BORDA

BALANCEAMENTO DE CARGA +

CONCENTRAÇÃO LAN

ZDM COMPRASNET

SERVIDORES WEB - COMPRASNET.GOV.BR

SERVIDORES BANCO DE

DADOSGigabit Ethernet - 1000 Mbps

Sentido comunicação usuários

Sentido comunicação web - BDs

Legenda

Linux Environment


Internet

BancosProdução

BancosHomologaçãoProdução(1)

Homologação

Publicação

Mainframe Environment


Internet

Produção(1) Produção(2) Produção(3) Produção(4)

Mainf rame

Infrastructure


Infrastructure


Int e rn e t

BancosProdução

BancosHomologaçãoT rei namento

Produção(1) Produ ção(2)

Produção(3) Produ ção(4)

Treinamen to

Homol ogação

Publicação

Desenvolvimento

Monitoração

Anti-vírus

Atualização SO

CorreioEletrônico

Agendadoresde tarefas

Servidoresde Backup

Gerência deMudanças eIncidentes

Sincronismode tempo

AutoridadeCertificadoraGerência

Segurança

Operação

Produção

Suporte

Gestão TI Segurança

Atend.Clientes

Rede

Comunidades

Gestão deServiços

Sala deSituação

Technology

High AvailabilityDatabase ClusterFile server clusterLoad balance (CSS)

HardwareBladesRack

Storage High Availability

High speedRaidLan Free Backup

SoftwaresSQL ServerPostgreSQLWindowsLinux RH


Monitoring


Customer Services Central


SERPRO – SERPRO Services Central (24 X 07)

1st level

2nd level – specialized customer services 0800 Exclusive Line - 0800 978 2329

Access via WEB Form

Access via e-mail: [email protected]

Services Central


Incident Management


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)



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.


SLA per architectureSupported users and transactions volumeService availabilityTechnical support availabilityIncident recoveryLoad Balance, Cluster and servers quantity

Service center

Service desk community

Systems development and support

Training

Security management


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


Quantity and value contracted, by type of tender – 2009 (USD)

Inelegibility from Tender 15.838 3.328.055.228,00

Reverse electronic auction 34.342 11.698.238.095,00

Reverse physical auction 1.091 1.565.905.726,00

Price survey 1.719 359.261.161,00

Total 291.703 28.417.203.897,00


Percentage of value contracted, by type of tender – 2009Value Contracted

27%

12%

11%

2%

6%

41%

1,3%

Competitive Bid

International Competitive Bid

Contest

Invitation

Exemptiom from Tender

Inelegibility from Tender

Reverse electronic auction

Reverse physical auction

Price survey


Price Contracted, by item type and year – 2002 to 2009

Itens Contracted

85% 87% 89% 92% 94% 94%81%

15% 13% 11% 8% 6% 6%19%

94%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009

ServicesGoods

Year Goods Services Total

2002 6.714.436.227,77 13.110.982.956,74 19.825.419.184,51

2003 6.239.584.416,48 7.905.994.920,67 14.145.579.337,15

2004 7.824.759.603,72 12.683.403.463,73 20.508.163.067,44

2005 12.852.792.348,21 12.217.478.931,71 25.070.271.279,92

2006 17.155.321.422,86 12.643.773.310,91 29.799.094.733,77

2007 18.196.557.330,44 17.026.034.187,04 35.222.591.517,49

2008 13.970.504.893,71 13.144.200.690,79 27.114.705.584,50

2009 22.761.175.025,94 26.968.931.791,38 49.730.106.817,32

Average 13.214.391.408,64 14.462.600.031,62 27.676.991.440,26


Share on purchase values, by economic sector and year – 2002 to 2009, Jan-DecYear Industry Commerce Services Others Total2002 2.170.846.859,79 3.010.529.295,88 12.347.612.578,07 2.296.430.450,77 19.825.419.184,512003 2.013.939.738,25 2.496.934.121,52 7.886.286.252,66 1.748.419.224,72 14.145.579.337,152004 2.575.989.695,44 3.217.862.562,60 12.818.664.238,01 1.895.646.571,39 20.508.163.067,442005 4.348.207.918,94 2.384.522.898,93 16.831.383.444,08 1.506.157.017,97 25.070.271.279,922006 3.780.890.181,14 5.791.407.950,95 17.894.371.444,07 2.332.425.157,61 29.799.094.733,772007 4.171.100.304,06 7.806.856.747,62 20.645.368.868,52 2.599.265.597,28 35.222.591.517,492008 3.616.822.993,73 7.873.070.336,60 14.318.522.630,64 1.306.289.623,53 27.114.705.584,502009 6.983.208.249,17 11.147.393.384,73 28.661.510.700,86 2.937.994.482,55 49.730.106.817,32

Average 3.707.625.742,56 5.466.072.162,35 16.425.465.019,61 2.077.828.515,73 27.676.991.440,26

Value Contracted

14% 13% 17% 12% 13% 14%

15%18% 16% 10% 22%

29% 22%

63% 67% 60% 59%53%

58%

12% 12% 9% 6% 8% 7% 5% 6%

13%11%

19%

62% 56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009

OthersServicesCommerceIndustry


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

Buying Processes

5% 3% 2% 2% 3%

60% 62%55%

36%

22%13% 12%

4%

14%9%

8%

6%

4%

5%

8%

37%67%

79%86%

19% 21%26%

19%

7% 3% 3%

1% 1,4% 2%

3,2%

3%

4%

2%

77,1%

4,8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009

Competitive Bid Invitation Price SurveyReverse Electronic Auction Reverse Physical Auction


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

Value Contracted

47%40%

15% 11%

36%

5%

8%

6%

4%

6%

22%

55%

34%43%

59%

23%11% 7%

54,9%

13%7%

5,9%

0%1%

1%2%

7%

2%

8%

2%1%2%

3%

0,9%

79% 74%62%

12%

29,9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009

Competitive Bid Invitation Price survey Reverse Electronic Auction Reverse Physical Auction


ABC Curve on buying values of material groups from the Reverse Electronic Auction –2009

Reverse Electronic Auction: Materials Groups

15%

9%

8%

7%

5%

4%

4%

2%

16%

0% 2% 4% 6% 8% 10%

12%

14%

16%

18%

Equipment for automatic data processing,(including firmware), software, accessories and

support equipment

Vehicle

Construction materials

Furniture

Hygiene products

Value Contracted (%)


ABC Curve on buying values of services groups from the Reverse Electronic Auction – 2009

Reverse Auction: Group of Services

15,0%

11,4%

6,9%

6,1%

5,1%

3,7%

3,4%

3,2%

2,8%

2,7%

2,5%

2,4%

2,2%

13,5%

0% 5% 10% 15% 20% 25%

Other Support Services

Special Types of Construction Services

Iinvestigation Service and Security

Leasing services for the right to use non-financial intangible assets

Leasing services relating to rental or other goods

Other business, technical and professional services

Land transport services

Value Contracted (%)


OECD - Performance Indicators

Indicator Mesure Comprasnet 2005

Comprasnet 2006

Comprasnet 2007

Comprasnet 2008

Limit

Divulge of the licitations and results publishing

Number of licitations (%) in wich the edital and results are publicaly divulged

100% 100% 100% 100% > 95%

Time for preparation of the proposals

Number of days between edital publication and proposals opening

13,24 days 13,8 days 13,46 days 13,51 days 21 days in open contest 10 days in restricted contest 3 days in price cotations

Time to evaluate the proposals

Number of days between opening of the proposals and results publishing

not evaluated PE = 7,2 days PP = 3,1 days

PE = 11,5 days PP = 4,8 days

PE = 20,4 days PP = 11,4 days

> 90 days

Providers that participate

average number of providers that present proposals in each licitation

4,2 PE = 12,2 PP = 4,22 Cotação = 7

PE = 14,39 PP = 3,30 Cotação = 8,49

PE = 14,24 PP = 3,15 Cotação = 8,28

5 proposals or more ( calculated as na average for sampling of the transactions)



Comprasnet 2006

Comprasnet 2007

Comprasnet 2008

Limit

Acquisition method used

Number of licitation processes that use lesser competitive method than foreseen in the law

0% 0% 0% 0% 1% or less

Direct hiring percentage of contracts attributed based on a single source

3,69% (quantity) 28,18% (money)

24,72% (quantity) 36,73% (money)

25,80% (quantity) 40,05% (money

26,56% (quantity) 37,81% (money

> 10% of the number of contracts and > 5% of the total value of the contracts

canceled processes

percentage of canceled licitations before contracts signature

0,89% 1,14% 0,90% 0,87% < 5%

Number of resources

Percentage between the number of appeals

12,35% 13,80% 30,10% 22,01% 10% < x < 50%



Comprasnet 2006

Comprasnet 2007

Comprasnet 2008

Limit

Response time to the appeal

number of days betwwen the appeal presentation and final response

5 days 13 days 18 days 17 days > 21 days

Appeals results Percentage of contracts with alteration on the results due to an appeal

not evaluated not evaluated not evaluated not evaluated > 5%

Delayed payments

percentage of payments done with more than 45 days late

not evaluated not evaluated not evaluated not evaluated > 10%

Increase in the contract value

percentage of the increases done to the final value of the contracts due to modifications

50,42% (money)

32,30% (money)

8,06% (money)

6,27% (money)²

15% (calculated as a avarage on the simple

SUPPLIERSMATERIALS /

SERVICES

PUBLISHING

RESULTS /REGISTERED

PRICES

COMMITMENT

CONTRACT

EXECUTION

REVERSE ACTION

Procurement System

PublicSession

SIAFI

Pro

cure

men

t D

ataw

areh

ouse

TRANSFER TO OTHER

SPHERES

OfficialJournal

SIASGSIDEC

Official Press

UASG /Purchases

Units

Supplier

Adds at

Reverse Auction Notice

Adds at

Adds at

E-mail

Consults Auction Notices

Adds at

Adds at

Adds to

Government Procurement Publicity


The Comprasnet Portal


Some Numbers

Providers 335,000

Users 66,000

Simultaneous users 22,000

Downloads/year 115,000

Byers Oficcers 4,000

Goods 195,000


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)


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.


Using Purchasing Power• In recent years, the Brazilian Government has used the

purchasing power to promote public policies:• Supplementary act 123-2006 and Decree 6204-2007 –

incentive to the recruitment of small businesses (exclusive auctions; preference criteria in the event of a tie).

• Act 8248-1991 and Decree 7174-2010 – incentive to companies that invest in technology development in Brazil (preference criteria in the event of a tie).

• Normative Instruction 1-2010 - 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


“Electronic Procurement is not a PANACEA”; “it is an incremental process”.

“Every journey begins with the first step”, …

…but “it’s easier when you know a good way”


brazil electronic government procurement expoxangai – feb/2010 ministry of planning secretariat of...

Documents

information technology

ministry of planning

public procurement

windows architecture

procurement notice

procurement modalities

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