chilecompra: a public policy to enhance transparency and efficiency
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ChileCompra: A public policy to enhance transparency and efficiency. Agenda. The Public Marketplace in Chile Outcomes A Public Management Reform Key considerations for a successful implementation. The Public Marketplace in Chile. Procurement system overview. - PowerPoint PPT PresentationTRANSCRIPT
ChileCompra: A public policy to enhance transparency and efficiency
• The Public Marketplace in Chile
• Outcomes
• A Public Management Reform
• Key considerations for a successful
implementation
Agenda
The Public Marketplace in Chile
Procurement system overview
Supported by a web-based marketplace.
Procurement system overview
Contracting agencies are accountable for their procurement process
ChileCompra is agency responsible for operating and regulating the market
Stakeholders provide the check & balance structure
Market Place
Agents
Public Opinion
General Audit Office
Congress
Procurement Tribunal
SupremeAudit
Institution
PublicProcurement
Court
5.3 Bids Per Process2,000,000 Visitors Per
Month15,000 Contracting
Officers
900 Public Agencies
1,650,000 Purchase Orders500,000 Business
Opportunities
Transactions worth 3.5% of GDP
90,000 Businesses Placing Bids
2009 ChileCompra Performance
6.200 Mio USD
100% of all Agencies
4.8 in 2008
Chile Population: 16 million
Outcomes
2.5
2.9
2.8
2.7
2.73
Fiduciary Capacity Min MaxVery Low 0.00 1.00Moderately Low 1.01 2.00Satisfactory 2.01 2.75Optimum 2.76 3.00
CPAR IDB 2008OECD/DAC
In terms on Integrity
Suppliers’ Opinions: Transparency in the market place
• ¿Half Empty?
• ¿Half Full?
39,6%
21,1%
39,2%
Leaders’ Opinions: Transparency in the market place
Source: Feed Back
13%
17%70% Public Sector Trade Unions
Judicial PowerOpposition Political PartiesGovernment Political PartiesPublic Sector WorkersCongress and Members of ParliamentCitizensInternational Organizations
2009 savings up to USD 180 MM
HospitalFully Equipped
Cataract Surgery
Post DegreeScholarship
Computers forChildren
Police Cars
A Public Management Reform
PoliticsSolutions
Problems
2003: Window of Opportunity Kingdon
(1995)
Problem: “Regardless of the degree of development, public procurement is a risk area for corruption” (Thai, 2001).Politics: Transparency and corruption scandals in 2003.
1998 2000 2003 2004 2008
Solutions
ChileCompra was a project in a broader agenda aiming to reform the State.
ICT
Institutions
HHRR Estrategy
Participaction
Service
Transperency
State reform
a
Strategy
Participation
• Other examples:• Quality services for the citizens
• Improvement the planning and control
management
• Electronic Government
• Improve cooperation between privet and
public sector
• Decentralization of the State
• New Ministry of Energy and New Ministry
of Environment
• Political Support• The Ministry of Finance leads the Reform• No restriction on resources• “Sticks and carrots”• Objectives are steady, well-understood and shared by every
stakeholder• Officials are well-paid and have sound professional records.
Top-Down Implementation
Waissbluth, 2006, “La Reforma del Estado en Chile 1990-2005”
(The State Reform in Chile 1990-2005)
The Role of Leadership
Key considerations for a successful implementation
The relevance of data
BIBusiness Intelligence
CRMCustomer
Relationship Management
Customers
Threat: Small & Medium Enterprises perception of further market concentration
Participación por Ventas según Segmento de Empresas
0%10%20%30%40%50%60%70%80%90%
100%
Economía Nacional Chilecompra 2006 Chilecompra 2007
MicroPequeñaMedianaGrande
18%
Participación por Ventas según Segmento de Empresas
0%10%20%30%40%50%60%70%80%90%
100%
Economía Nacional Chilecompra 2006 Chilecompra 2007
MicroPequeñaMedianaGrande
24%18%
Participación por Ventas según Segmento de Empresas
0%10%20%30%40%50%60%70%80%90%
100%
Economía Nacional Chilecompra 2006 Chilecompra 2007
MicroPequeñaMedianaGrande
35%18% 24%
Source: Chilecompra
Response: Having more suppliers is a strategic goal
National Economy ChileCompra 2006 ChileCompra 2007
Transactions by Company Size
MicroSmallMediumBig
Threat: Resistance to change
Improve contracting officers capabilities
Response
Operations
Private Operators ChileCompra Multiple contracts + SLAs
Policy
Regulation
Training
Software
Operations
Data Center
Contact Center
Complementary Software Payments are no longer based on
transactions, but rather on fees.
Initial Investment in SW: USD 2 MM
ChileCompra’s budget: USD 11 MM
• Goods and services: USD 6 MM• Data center : USD 2,8 MM
• Customer support : USD 0,5 MM
• Software : USD 1,5 MM
• Training: USD 0,3 MM
• Others: USD 0,9 MM
• Internal HHRR: USD 5 MM
All figures in USD millions per year
+Service Level Agreements
José Miguel de la CuadraHead of Public Procurement Division of ChileCompra
Ministry of [email protected]
Thank You