session 4 phiilippines business model final 231111
TRANSCRIPT
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Asia and Pacific E-GP Conference
November 22-24,2011Denpasar, Indonesia
PhilGEPS :
A Government Managed Service
e-GP Regional ConferenceBali, IndonesiaNov 22-24,2011
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II. Procurement in the Philippines
I. System Overview
Outline
Over
view of PhilGEPS
Approach Followed for Implementation
Key Factors, Challenges and Lessoned Learnt
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System Overview The PhilGEPS (Philippine Government Electronic
Procurement System) is the single, centralized electronicportal that shall serve as the primary and definitive sourceof information on government procurement.
Main objectives: Increase Transparency
Level the Playing Field for Bidders Provide an Open, National and Competitive Procurement
Environment
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System Overview
PhilGEPS supports thefollowing functions :
Advertisement of notices,distribution of documents andposting of awards;
Buyer and Supplier Registry;
Virtual Store supporting commonuse and non-stocked items
Site Administration and Reportingfunctions
In 2012, PhilGEPS plans tointroduce:
e-bid submission and management of bid opening, evaluation, postqualification and award
Expanded supplier registry withproducts and services listings;
e-payment for user fees, bid forms,bid securities
Integrated security for encryption,decryption and distribution of bids
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PhilGEPS Activity
2001( Pilotsystem) Agencies 1,713 Suppliers 854 Notices 2,064 Value $ 784KUSD
2006 Agencies 3,200 Suppliers 12,000 Notices 18,000 Value $68M USD
2010/11 Agencies 11,500 Suppliers 54,000 Notices 153,000 Value $36B USD
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Funding Funded by the Government. Plan to implementuser fees for system cost recovery.
System Delivery Service contract with 3 rd party service provider forprovision of system, infrastructure, disaster
recovery plan with backup site, development andsupport services for fixed monthly service fee.
Cost to Government P50M a year (1 Million USD) for all system deliveryservices and functions (approx. $18/user/per year)Government operates and funds the PhilGEPSsupport office.
Time/Cost to implement Pilot system implementation 6 months; 5 yearoperation - $200,000 funded by CIDACurrent PhilGEPS system development 18months implementation.
Resources supporting operations The Government PhilGEPS office has 25 personnel.Service Provider has 30 personnel
Government Managed Service
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Why This Approach?
Limited in-house technical capacity to develop,support and expand the system
Ensure government control and ownership of the
PhilGEPS business operation while limiting the riskof the technical delivery of the system.
Cost certainty over the period of the contract. Manage Risk associated with the operation and
growth of the system. Government wanted to provide a free service
offering to encourage participation by agenciesand suppliers.
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PhilGEPS (Government) Owns the PhilGEPS brand, URL, business
operation, users, all data and the systemdesign, workflows and other intellectualproperty provided by the governmentand/or its consultants.
Option to acquire rights to system at endof contract.
Responsible for : Managing the contract with the Service
Provider on the basis of the SLA Marketing development of PhilGEPS and
managing the business services operations. Providing help desk to client agencies and
suppliers/contractors/consultants Implementing users fees Reporting to the GPPB
Service Provider Owns all system components, software
licenses, system Source Code and all theequipment, facilities and networkinfrastructure supporting the system.
Turn over all data and required system rightsto government at end of contract.
Responsible for : Implementing the PhilGEPS and providing
technical advisory, planning, development
and implementation service to roll outrequired new functionalities in manageablestages
Providing all technical infrastructure requiredfor the effective operation and technicalsupport of the PhilGEPS.
Scaling service operation and infrastructure tomeet SLA regardless of growth
Rights and Roles
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Advantages of Approach Implementation Risk: No payment made by the Government until the system was accepted and
implemented into production. Service Provider absorbs the cost for any delays or cost overruns.
Financial Management : No upfront cost on the part of the Government for the hardware/softwarelicenses.
Technology Management: Government specify the required output. Service Provider handles allsoftware development management. Service Provider responsible to ensure technical platformsmeets functions requirements and set SLA.
Operation Risk Management: Service provider procures infrastructure, hardware or software,information management functions including backup and recovery procedures and disasterrecovery plan.
Human Resources Management: Government does not need to attract, recruit, train and retain ITstaff (developer,system and database administrators) This responsibility is with service provider.
Service Delivery Management: Single point of contact for service delivery. Government providebetter services to clients and any SLA failures result in penalties to service provider.
Government could focus on the development of the business services and policies supporting theprocurement reform strategy.
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GovernmentLeadership
Policy andLegal
Framework
InstitutionalChange
Awarenessand Capacity
BuildingTechnology
GovernmentLeadership
Policy andLegal
Framework
InstitutionalChange
Awarenessand Capacity
BuildingTechnology
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Lessons Learned
The Business Model to be selected shall depend on the financial,operational, technological capacity of the country and their localenvironment.
The Government is ultimately responsible for the e-procurementsystem delivered and the users participating in the system.
Transition planning is required as part of the contract terminationas e-procurement is a long-term life cycle not just a 3 5 yearservice contract. Need to ensure business continuity from oneservice provider to another.
The Market Brand, Data, Users, Design and URL is more valuable
than the source code and should be owned by the government. The delivery and support of the e-procurement system is an on-
going learning process. System planning and development is a never ending process as
policies, technology options and user needs continue to evolve.
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Thank YouRosa Maria M. Clemente
PhilGEPS, Director III