E Procurement Reference Guide

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e‐Procurement
Reference Guide

e-Procurement (e-GP), which is procurement of goods, works and services through internet-based
information technologies is emerging worldwide with the potential to drive procurement reform, increase
competition and promote integrity in public procurement. When properly designed, it can drastically
reduce costs, facilitate information accessibility and reduce opportunities for corruption.
This e-Procurement Reference Guide was created for the governments that are trying to embark on e-
Procurement implementation agenda. This on-line resource is a compilation of the most useful publicly
available on-line materials that cover various issues of e-Procurement implementation

Contents
Overview of e‐Procurement Reference Guide .............................................................................................. 5
I. THE SCOPE OF THIS E‐PROCUREMENT REFERENCE GUIDE .................................................................... 5
II. WHO IS IT FOR ....................................................................................................................................... 5
III. THE MATERIALS USED IN THIS E‐PROCUREMENT REFERENCE GUIDE ................................................. 5
IV. HOW THIS E‐PROCUREMENT REFERENCE GUIDE WORKS ................................................................... 5
V. OVERVIEW OF EACH SECTION .............................................................................................................. 5
e‐Procurement as a Tool for Promoting Transparency, Competition and Efficiency ................................... 8
I. THE ROLE OF E‐PROCUREMENT IN PROMOTING TRANSPARENCY, COMPETITION AND EFFICIENCY ... 8
II. BENEFITS FROM E‐PROCUREMENT INTRODUCTION ............................................................................ 9
III. CHALLENGES OF E‐PROCUREMENT IMPLEMENTATION ...................................................................... 9
Leadership, Change Management and Communications Strategy............................................................. 11
I. THE IMPORTANCE OF LEADERSHIP ...................................................................................................... 11
II. THE NEED FOR CHANGE MANAGEMENT ............................................................................................ 11
III. DESIGNING A COMMUNICATIONS STRATEGY: A NEW COMMUNICATION CHALLENGE ................... 12
Planning for e‐Procurement Implementation ............................................................................................ 14
I. THE RECOMMENDED STEPS ................................................................................................................. 14
II. DEVELOPMENT OF E‐GP IMPLEMENTATION STRATEGY ..................................................................... 15
III. THE NEED TO PLAN FOR BUYER AND SUPPLIER ACTIVATION ............................................................ 16
IV. THE CHANGING NATURE OF E‐PROCUREMENT ................................................................................. 16
Estimating Costs of e‐Procurement implementation ................................................................................. 18
I. COSTING METHODOLOGIES ................................................................................................................. 18
II. EXAMPLES OF COST REDUCTIONS ...................................................................................................... 19
Business Models for e‐Procurement Implementation................................................................................ 23
I. MAIN TYPES OF BUSINESS MODELS USED ........................................................................................... 23
II. EXAMPLES OF DIFFERENT BUSINESS MODELS ................................................................................... 25
Legislation, Regulation and Policy............................................................................................................... 26
I. PUBLIC PROCUREMENT LAWS OVERVIEW ........................................................................................... 26
II. LEGAL TREATEMENT OF ELECTRONIC AUTHENTICATION AND E‐SIGNATURES .................................. 26
III. CHANGES IN DIGITAL SIGNATURES REQUIREMENTS ......................................................................... 28
IV. THE EU POLICY AND LEGISLATIVE FRAMEWORK FOR ELECTRONIC PUBLIC PROCUREMENT ........... 28
V. REGULATORY FRAMEWORK EXAMPLES FROM COUNTRIES ............................................................... 29
Functional and Non‐Functional Requirements ........................................................................................... 30
I. FUNCTIONAL REQUIREMENTS FOR IMPLEMENTATION PHASES AS DEFINED BY MDB ....................... 30
II. NON‐FUNCTIONAL REQUIREMENTS ................................................................................................... 31
III. OVERVIEW OF FUNCTIONAL REQUIREMENTS UNDER THE EU FRAMEWORK ................................... 31
Technologies and Applications ................................................................................................................... 33
I. E‐PROCUREMENT APPLICATIONS AND SYSTEMS: A QUICK OVERVIEW .............................................. 33
II. THE RESULTS OF E‐GP RESEARCH BY MDB'S WORKING GROUP......................................................... 33
III. TECHNOLOGY PLATFORMS ............................................................................................................... 34
IV. ENTERPRISE ARCHITECTURE ............................................................................................................. 34
V. RISK MANAGEMENT AND ANALYSIS .................................................................................................. 35
VI. SECURITY ISSUES ................................................................................................................................ 35
VII. OVERVIEW OF AUTHENTICATION TECHNIQUES ............................................................................... 36
VIII. DIGITAL SIGNATURES, PKI AND CERTIFICATION SERVICE PROVIDERS ............................................ 36
Standards .................................................................................................................................................... 38
I. OVERVIEW OF STANDARDS .................................................................................................................. 38
II. E‐CATALOGUES STANDARDS .............................................................................................................. 39
III. COMMON PROCUREMENT VOCABULARY (CPV) ............................................................................... 40
IV. UNSPSC GOODS AND SERVICES PRODUCT CODE .............................................................................. 40
V. E‐BUSINESS STANDARTIZATION BODIES ............................................................................................. 40
EU's e‐Procurement Initiatives ................................................................................................................... 43
I. OVERVIEW ............................................................................................................................................ 43
II. E‐PROCUREMENT PROCEDURES AS PER THE EU PROCUREMENT RULES AND REGULATIONS........... 44
III. THE E‐PROCUREMENT ON‐LINE FORUM: SHARING AND LEARNING FROM OTHERS ........................ 45
IV. PEPPOL: A PAN‐EUROPEAN PILOT AIMED TO FACILITATE THE EU‐WIDE INTEROPERABLE PUBLIC E‐
PROCUREMENT ....................................................................................................................................... 45
V. THE NEW CHALLENGES POSED BY THE TRANSITION TO E‐PROCUREMENT ...................................... 47
Overview of e‐Procurement Efforts in Various Countries .......................................................................... 48
I. REGIONAL OVERVIEW OF E‐PROCUREMENT ....................................................................................... 48
II. COUNTRY SPECIFIC OVERVIEW OF E‐PROCUREMENT ....................................................................... 48
III. ADAPTING KONEPS SYSTEM TO OTHER COUNTRIES ......................................................................... 49
Lessons Learned .......................................................................................................................................... 51
Training Resources Available through the World Bank Group ................................................................... 54
I. OVERVIEW OF TRAINING FOCUS AREAS .............................................................................................. 54
II. THE WORLD BANK INSTITUTE: DISTANCE LEARNING TRAINING RESOURCES .................................... 54
III. THE E‐DEVELOPMENT THEMATIC GROUP: DISTANCE LEARNING TRAINING RESOURCES ................ 54
IV. ICT TOOLKIT DEVELOPED BY THE WORLD BANK ............................................................................... 54

Overview of e‐Procurement Reference Guide

I. THE SCOPE OF THIS E-PROCUREMENT REFERENCE GUIDE
This on‐line e‐Procurement Reference Guide attempts to summarize and reference the materials in the area of e‐
Procurement that are publicly available on‐line. The Guide offers a mechanism to easily search and access the
information on a particular e‐Procurement subject in 15 areas.

II. WHO IS IT FOR

The principal audience is the practitioners in the developing countries who are either embarking or already
implementing e‐Procurement solutions in their countries. The audience may also include some who have little
background in e‐Procurement and who need to be better informed. A secondary audience is the staff members
working in the project implementation units [and borrowers / beneficiaries] to provide them with a primer on
good practice in order that they might better prepare for and monitor e‐Procurement components.

III. THE MATERIALS USED IN THIS E-PROCUREMENT REFERENCE GUIDE

The reference materials used in this Guide include the research materials developed by the Multilateral
Development Banks’ (MDB’s) working group on e‐Procurement as well as their e‐Procurement assessment
methodology. It also refers to the numerous documents that describe the experience of e‐Procurement
development in the European Union countries, documents developed by the PEPPOL and the e‐Procurement
Community of Practice members under EU ePractice.eu. The e‐Procurement Reference Guide also references to
numerous training materials developed as part of the distance learning series on e‐Procurement organized by the
World Bank institute in 2009 and 2010. Additionally, it links to country specific presentations made at various e‐
Procurement conferences around the world. These country presentations should not be viewed as a suggestion to
follow the same path of or consider being the best practice.

IV. HOW THIS E-PROCUREMENT REFERENCE GUIDE WORKS

Each of the 15 sections presents an overview of a particular subject matter and is aimed to outline the summary of
the main issues. The main text provides links to the reference materials that were selected to provide more
information and insights. The reader is taken to a particular portion of the document that either presents a chart,
table or more details on a subject.

V. OVERVIEW OF EACH SECTION

1. Overview of the e‐Procurement Reference Guide
This section provides an overview as well as a one paragraph description of each section.

2. E‐Procurement as a Tool for Promoting Transparency, Competition and Efficiency
This section describes the role of e‐procurement in promoting transparency, competition and efficiency. It also
talks about the benefits and challenges of e‐procurement introduction.

3. Leadership, Change Management and Communications Strategy
This section talks about the importance of leadership as one of the key components for the successful e‐
procurement implementation. It also presents practical steps and recommendations for development of an
effective Communications Strategy that is based on the principle that e‐procurement are a part of the broader
procurement reform agenda.

4. Planning for e‐Procurement Implementation
This section is based on the materials developed by the MDB’s working group. It presents the recommended
sequence and steps for the e‐procurement implementation, including 1) Preparation/Readiness Assessment; 2) e‐
Tendering; 3) e‐Comprehensive Contract Management; 4) e‐Purchasing. This section also describes critical success
factors that are generally found in any successful e‐GP strategy and highlights the importance of having a plan to
create a marketplace by activating the Buyers and Suppliers.

5. Estimating the costs of e‐Procurement Implementation
This section presents a methodology that can be applied in order to cost e‐procurement solutions. It also provides
links to the detailed costing tables that can be used as a basis for costing exercise. This section also provides links
to the power point presentations made by the countries that demonstrate the cost savings from e‐procurement
implementation.

6. Business Models for e‐Procurement implementation
This section provides information about the main business models used to implement e‐procurement systems. The
models vary from complete in‐house solutions to various types of third‐party partnerships. It is not intended to
recommend one model vs. other but to present an overview of what others have done.

7. Legislation, Regulations and Policy
This section provides an overview of the legal and regulatory issues that pertain to e‐procurement. The section’s
primarily focus is the issues of legal treatment of electronic authentication and e‐signatures in the European
context.

8. Functional and Non‐Functional Requirements
This sub‐section is designed to provide the responsible decision makers on what functions or qualities they could
seek from the eGP system that is either developed by an agency or purchased as a solution or implemented
through a third party provider. This section describes specifications of the desirable systems that are defined in
terms of functional requirements and the systems qualities are defined in terms of non‐functional requirements.

9. Technologies and Applications
This section presents an overview of the e‐procurement applications and systems, technology platforms, digital
signatures and authentication techniques, the underlying security issues and technical specifications. It is followed
by risk management analysis and concludes with the presentation of findings from the survey of e‐procurement
systems done by the MDBs in jurisdictions of Asia/Oceania, South America and Europe.

10. Standards
This section provides an overview of Standards as it pertains to e‐procurement, including the standards for e‐
catalogues and Common Procurement Vocabulary. It also includes a list of business standardization bodies.

11. EU’s e‐Procurement Initiatives in Europe
The countries of European Union have implemented numerous projects and initiatives in Europe in the area of
eProcurement. This section attempts to summarize these initiatives that tackle different subjects, issues or aspects
of modernizing public procurement and are targeted at speeding up the uptake of e‐procurement, promotion of
interoperability and cross‐border cooperation. The text provides links to guiding documents, summaries and major
studies undertaken in the last few years that are found to be useful for any practitioner. It also provides the
explanation for the contract types in accordance with the EU rules and regulations including for Individual
contracts (open procedure and restricted procedure), repetitive contracts (dynamic purchasing systems, and
framework agreements) and extensions (electronic auctions).

12. Overview of e‐Procurement Efforts in Various Countries
This section presents the selected case studies from various countries. Where available, the case study presents
the information about the location (country and city), responsible government agency, implementation period,
current status of the case study, business model used, number of staff members working on this project,
technology choice, funding sources and implementation costs as well as description of the main results, benefits
and impacts and lessons learned.

13. Industry Solutions
This section points the user to the e‐procurement vendors, their proposed e‐procurement solutions and the costs.
In addition, it describes the available demonstrators which is a special tool developed in open source that could
serve as a prototype interface of the actual e‐procurement system.

14. Lessons Learned
This section documents a number of lessons learned from e‐procurement implementation around the world.
These are not intended to be comprehensive but indicative of what other practitioners found of a value and
shared.

15. Training Resources Available Through the World Bank Group
This section describes the training provided by the World Bank Institute and the World Bank’s e‐thematic group in
the area of e‐procurement. It also provides links to the ICT toolkit that is intended to be a practical guide for the
task managers in preparing for and supervising the implementation of ICT projects and components.

e‐Procurement as a Tool for Promoting Transparency,
Competition and Efficiency

I. THE ROLE OF E-PROCUREMENT IN PROMOTING TRANSPARENCY, COMPETITION
AND EFFICIENCY

e‐Procurement, which is procurement of goods, works and services through internet‐based information
technologies is emerging worldwide with the potential to reform processes, promote competition, promote
integrity in public procurement, enhance transparency and accountability. It is also believed to be a driver of
procurement reform. The European Commission refers to it as “high impact e‐service”
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/EU_200
6_0173_f_en_acte_0.pdf) that is highly desirable.

It is important to understand that e‐Procurement is not simply the application of a new technology to existing
processes, but a reform process in itself that requires in many instances, that traditional processes be modified or
abolished ‐ that management processes, protocols and procedures be standardized, reformatted and often
simplified, all of which are conducive to greater transparency. e‐Procurement also requires new training both of
the procurement officials and business stakeholders, and even a public awareness programme to develop civil
oversight.

When properly designed, e‐Procurement can drastically reduce the cost of information while at the same time it
can facilitate the information accessibility. The strength of e‐Procurement in the anti‐corruption agenda arises
from this capacity to greatly reduce the cost and increase the accessibility of information without having to go
through human channels.

Well‐designed and implemented e‐Procurement methodologies and applications can strengthen oversight and
reduce opportunities for the improper exercise of discretion. Thus, e‐Procurement is emerging as a tool for
promoting transparency, competition, efficiency and a mechanism to reduce corruption. This
research (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resource
s/eGP‐as‐anti‐corruption‐reform‐in‐Brazil.pdf) recently published in the Journal for International Policy Solutions
presents how implementation of Brazil’s e‐Procurement system COMPRASNET created a relatively successful
system for battling corruption. Additionally, mandating the use of electronic auctions under Brazil’s COMPRASNET
resulted in a substantial increase of SMEs participation
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Brazils_
e‐procurement.pdf#page=3), starting from R$ 108.4million on 2004, and go to R$464.4 million in 2005 and R$ 822
million in 2006.

Objectives of efficiency, transparency, enhanced policy‐making capacity and greater competition are the major
driving forces for e‐Procurement. e‐procurement can also be a catalyst for the accelerated take‐up of new
technologies into the economy generally.

A presentation on this subject was made by Jose Edgardo Campos on March 24th 2010 as part distance learning
series,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Ed‐
Campos‐E‐Procurement‐GDLN‐03.242010‐draft.pdf). Another useful presentation describing ChileCompra’s
agenda for reforming the state and reducing corruption opportunities is presented here
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Chile‐
Compra‐by‐José‐Miguel‐de‐la‐Cuadra‐Public‐ProcurementPolicy2.pdf). It was delivered by José Miguel de la
Cuadra, Head of Public Procurement Division of ChileCompra, Ministry of Finance in Washington, in April 2010.

II. BENEFITS FROM E-PROCUREMENT INTRODUCTION

MDB’s e‐Procurement working group identified significant potential outcomes from the introduction of e‐
Procurement capabilities and applications. While there has yet to be a definitive study to quantify the impact of
technology on procurement corruption, research made by the MDBs has revealed some supporting information.

Specifically, the study by the Curtin University of Technology, sponsored by the MDBs, has reported the
experiences from 14 countries from Europe, Asia‐Oceania and South America. The comments from respondent
countries have been provided in terms of the providers of the procurement services and systems (Providers) as
well as for the buyers and suppliers that use the services and systems (Users).

Reported benefits of e‐Procurement from this sample are listed in this Table 3
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Corrupt
ionversusTechnologyinPublicProcurement.pdf). This Table, summarizing the benefits of using the system,
demonstrates that the providers of e‐Procurement services ranked greater transparency as its most significant
benefit while users (suppliers) also gave this a high ranking. Both providers and users also identified greater
competition as a significant outcome which also has a counter‐corruption influence. As expected both groups
were also able to cite various forms of efficiency gains, which in turn also promote competition. This study has
further reported a significant reduction in supplier complaints since the introduction of e‐procurement.

Other effects of e‐Procurement that also enhance transparency are that it acts as a catalyst for the standardization
of documentation, tendering templates, tendering rules, policies and procedures and enhances supplier and civil
access to the oversight of procurement processes. These effects are evident in the responses listed in this Table 4
ionversusTechnologyinPublicProcurement.pdf), which summarizes the ability of the e‐Procurement systems to
support the integrity and transparency processes.

Similarly, Table 5
ionversusTechnologyinPublicProcurement.pdf), which presents a summary of the technology driven reform,
suggests that e‐Procurement is in fact a catalyst for significant reform of traditional procurement. This is
encouraging, given the fact that there has sometimes been a tendency for authorities to regard e‐Procurement as
simply a technical matter.

Chapter 3 on The potential of new technologies to prevent bribery in procurement
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/bribery
.pdf) from “Fighting bribery fighting bribery in public procurement in Asia‐Pacific”, prepared by as part of the
ADB/OECD Anti‐Corruption Initiative for Asia and the Pacific Report by Paul Schapper of Curtin University of
Technology, talks about the potential of teh new technologies to prevent bribery in procurement ‐ electronic
media have the potential to contribute to reducing bribery risks in public procurement.

While more studies are needed, these results seem to support the proposition that e‐Procurement can be a
significant influence in the reform of procurement and in the anti‐corruption agenda.

III. CHALLENGES OF E-PROCUREMENT IMPLEMENTATION

Implementation of e‐Procurement can present significant challenges. Some of the stumbling blocks identified
during the eGP Research undertaken by the MDB working group in 2007 include the following:

‐ Lack of leadership
‐ Lack of Strategy or systematic planning
‐ Adopting the idea of the ‘big bang’ solution
‐ Inadequate expertise applied to the task or lack of existing expertise
‐ Reinventing the wheel
‐ A focus on technology over process management
‐ Vendor‐driven e‐GP solutions
‐ Consultants that seek to modify government to match the technology
‐ Absence or insufficiency of policies, regulations and procedures
‐ Unsustainable business case

An overview of opportunities and challenges can also be found in this presentation by Sanjay Pradhan
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Opport
unitiesandChallengesbySanjayPradhan.pdf), Vice President, World Bank Institute, which he made at the e‐
Procurement knowledge sharing event that took place in December 2008.

Leadership, Change Management and Communications
Strategy

I. THE IMPORTANCE OF LEADERSHIP

An essential element for successful e‐Procurement implementation is government leadership, which will deliver
the sponsorship, endorsement and authority for the vital ingredients of:
 A vision and objectives for e‐Procurement
 Lead agency role definition and coordination
 Procurement management reform and implementation
 Stakeholder activation and commitment (government, business, community)
 Resource support (funding & expertise) for implementation and sustainability of e‐Procurement

The effective operational translation of this leadership is crucial and the government will need to nominate a lead
agency to implement its policy and manage the risks. A suitable agency may already exist (State Procurement
Agency, for example, may be the most appropriate). Lead agency endorsement identifies an authority to lead and
manage the development and operation of the transformations required for government e‐Procurement.

The lead agency will define the need for management and technical expertise and funding as well as coordination
and collaboration across government. The Cabinet‐level sign‐off and lead agency establishment are important first
steps to establish leadership, coordination and effective outcomes as well as the mechanism by which the requisite
expertise can be assembled. The lead agency will require resources and expertise not just in technical areas but
also to undertake change management.

An e‐Procurement strategy will be strengthened by:
 A change management strategy that builds awareness and ownership amongst procurement personnel
 Professional procurement development and retraining at manager and officer level
 Access to high‐level policy, management and technical advice
 Restructuring to recognize the higher skill levels that result from e‐Procurement reform

II. THE NEED FOR CHANGE MANAGEMENT

The technology is not difficult to use – it is the change management and ensuring sustainability that takes
time. This presentation
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Drivers
_of_change_management_in_e‐Government_Procurement.pdf) made by Ashish Bhateja, Senior Procurement
Specialist, OPCS, World Bank as part of 2010 eGP e‐learning series provides an overview of the key drivers of
changes (Policy, Process and Platform) as well as presents a case of e‐Procurement in Karnataka State of India and
the use of performance indicators. Below are examples of how change management was handled in various
countries:

 PARAGUAY: Change Management and e‐GP planning, a presentation by Juan Max Rejalaga, National Director,
Contrataciones Públicas, Presidencia de la República, Government of Paraguay
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/PA
RAGUAY.pdf)
 CHILE: e‐Procurement transformation – planning and change management under ChileCompra, made in
November 2009 by Ivan Braga of ChileCompra.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/cp
pr2012.docx)

III. DESIGNING A COMMUNICATIONS STRATEGY: A NEW COMMUNICATION
CHALLENGE

The advocates of e‐Procurement implementation in the country need to think of how to build support for e‐
Procurement implementation as part of the wider Procurement Reform and design the Communications Strategy
accordingly. The Communications Strategy needs to first plan for the necessary pieces of legislation passed. One
might consider using a decision‐making tool called Five Communication Management Decisions
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Caby_P
rocurement_Reform_051510_Final.pdf#page=4). The decision tool shows the framework for the five decisions to
be made in respect to 1) audience; 2) desired behavior; 3) message; 4) channels of communication and evaluation.
This simple tool could be used by the champions to brainstorm and shape up the Communications Strategy as well
as take decisions on the most appropriate approaches to achieve specific objectives.

When designing a communications strategy, the following needs to be kept in mind:
 Focus on stakeholders’ needs
 Target stakeholder’s beliefs and opinions
 Be culturally sensitive
 Answer the stakeholder’s question: what does this have to do with me?
 Make the message memorable: simple, focused and concise
1. THE AUDIENCE: MAPPING THE STAKEHOLDERS
It is important to clearly identify and map your main stakeholders and audience. One way of segmenting or
differentiating your audience for communication activities is to identify primary, secondary, and tertiary audiences.
In most countries, for procurement reform they are:
 PRIMARY AUDIENCE – consists of the legislators, because these are the people whose specific action/behavior
is critical to passing the new legislation;
 SECONDARY AUDIENCE – consists of the groups who exert influence on the action of the legislators, the
primary audience. In most countries, the legislators need to be convinced that the executive the branch of the
government are supportive of the new procurement reform agenda;
 TERTIARY AUDIENCE – includes the civil society, the business sector and the media. These groups have a voice
in the debate and can influence the policy decisions on procurement reform.
2. POWER INTEREST MATRIX
Another approach to audience segmentation is by understanding the power‐interest matrix. It’s a 2 x 2
matrix (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/
Caby_Procurement_Reform_051510_Final.pdf#page=8) where one needs to analyze levels of power over a reform
issue and interest.
 The Players are the groups that are highly interested and have high power to support or block reform.
 The Advocates are the reform champions that have high interest but possibly low power. Their role is to deepen
understanding of legislators of the value and benefits of the new procurement law/reform.
 Context setters are usually the general media practitioners – radio, TV, print, who are not deeply involved with
procurement reform but could play a critical role in increasing the awareness of the general public about
procurement reform. They also include CSOs involved in other issues aside from procurement reform or business
groups who were on the “periphery” of the procurement reform processes.
 Finally, the crowd – consists of those groups often called the “general public” whose interests and attention were
focused on other things – such as making a daily living.
One can segment the potential audiences using this matrix, and seek to understand “who is who”, what are the
priorities on their agenda, what are the “rules of the game” that each of these groups operate under and what
message would get their attention and make the decision makers to take on the cudgels of procurement reform
over other development issues.

3. VARIOUS TARGET STRATEGIES
Another way of segmenting audiences is to define audiences along a continuum: from those who strongly oppose
reform to those who are the committed supporters. This approach is used extensively in political campaigns –
where a candidate’s opponents and supporters are identified. See this graph
rocurement_Reform_051510_Final.pdf#page=7) listing potential groups that can represent unmovable opponents,
opponents, uncommitted and uninvolved, uncommitted and involved, allies and hard core allies.
In designing the communications strategy it is always important to systematically assess and seek to understand
the motivations, perceptions and interests of various groups.
In most of the cases the communication resources are often spent to talk to those who already understand the
rationale for reform – donors, NGOs who are part of the reform movement, grassroots organizations working
directly with beneficiaries. The champions also talk to the opposition in order to manage and try to minimize the
possible negative media publicity. It is extremely important to pay a special attention to the swing constituencies –
“the convincibles” and “the persuadables” and to be able to effectively communicate in order to gain their trust
and support.

4. CONCLUSIONS
 First, the reformers need to undertake the analysis to better understand the “what” (pathologies), “who” (the
target audience) and the “why” (rules of the game).
 Second, they need an effective communication strategy that would help various groups that are critical to the
success of procurement reform to play their part and play their role in the reform process.
 Third, the drivers of the procurement reform need to implement communication activities that build
understanding and support for governance reform among multiple stakeholders. Some of these communication
activities will use mass media channels
rocurement_Reform_051510_Final.pdf#page=11) – radio, TV, print, simple screen savers. Some of this
communication would take place behind closed doors, among representatives of critical stakeholders –
government, media, business groups, and civil society.

Planning for e‐Procurement Implementation

I. THE RECOMMENDED STEPS

The implementation of e‐Procurement has four consecutive steps as outlined in the Roadmap developed by the
MDB working group on e‐Procurement. The snapshot of the Roadmap is presented here. The Roadmap is a tool
that will have to be adapted to fit the specific conditions, strengths and weaknesses, and prior level of
development of e‐Procurement in each individual case in order to be applied in all countries, regions, and
municipalities. The recommended steps are as follows:

STEP 1: THE PLANNING/READINESS ASSESSMENT
Before the country starts implementing the e‐Procurement, it is important to determine the level of readiness to
embrace the e‐Procurement in a sustainable manner. The MDB working group has developed an e‐GP Readiness
Assessment
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Readin
essAssessment.pdf), which is intended to assist a jurisdiction to conduct a high level review of its procurement
environment. Conducting a current assessment is usually one of the key initial steps for developing an
implementation plan for e‐Procurement. The objective of this stage is to achieve three basic start‐up pre‐
requisites: what (the vision); Who (institutional framework and leadership); How (Action Plan).

The Assessment addresses the strategic foundations
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/eGPRo
adMap.pdf#page=16) of e‐Procurement by examining the components that are the basis for planning the
transition to e‐Procurement, as shown in this table
essAssessment.pdf#page=6). They are institutional capacity, governance, business functionality and standards,
third party involvement and application of technology. It is intended that the Assessment be voluntary and
completed by people who are positive to procurement reform.

The four stages of readiness, The four stages of readiness, which are “Level 1‐ None,” “Level 2‐ Small Degree,
“Level 3‐ Some Degree” and “Level 4‐Adequate Degree” are described in this table
essAssessment.pdf#page=7). The specific activities should be around the following:
 1.1. Establish institutional framework and coordination system
adMap.pdf#page=26)
 1.2. Prepare general assessment and strategic e‐Procurement Plan
adMap.pdf#page=30)
 1.3. Prepare Connectivity Plan and Internet Assessment
adMap.pdf#page=33)

STEP 2: E‐TENDERING
(High Value Low Volume contracts for goods, services and infrastructure sometimes known as e‐Bidding)
The objective of this phase is to carry out tendering processes in a much shorter period, at a lower cost for both
supplier and the government, with total transparency, and with a high impact on development. The specific
activities should be around the following:
 2.1. Posting of tendering opportunities and contract‐awarded information on a SINGLE internet site.
 (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/eGPRo
adMap.pdf#page=37)
 2.2. Customized Information
adMap.pdf#page=39) (once all basic information on tendering process is found on a single web site, now tailored
to specific interest of each party).
 2.3. Open access to all bidding document via internet.
adMap.pdf#page=43)
 2.4. Electronic Bid submission.
adMap.pdf#page=46)

 STEP 3: E‐COMPREHENSIVE CONTRACT MANAGEMENT
 The objective is to achieve transparency, economy and efficiency in the procurement processes. The specific
activities should be around the following:
 3.1. Contact execution management
adMap.pdf#page=50)
 3.2. Contract Capacity consolidation
adMap.pdf#page=52)

 STEP 4: E‐PURCHASING
(HIGH VOLUME, LOW COST GOODS AND SERVICES UNDER SPECIFIED ARRANGEMENTS)
 The objective is to create a transactional system in which all suppliers may offer their goods and services and all
public entities may select online the best option among them, order the supply, receive it, incorporate it to the
inventories and process the payment. The specific activities should be around the following
adMap.pdf#page=58):

 4.1. Define purchasing policies regarding the scope and orientation of the program
 4.2. Supplier enablement through development of a set of market instruments
 4.3. Posting of eligible bids on the internet
 4.4. Organization of Public Sector Demand on the internet
 4.5. Electronic processing of transactions
 4.6. Personalized services, and supply‐side incentives

II. DEVELOPMENT OF E-GP IMPLEMENTATION STRATEGY

To perceive e‐Procurement developments simply as technological issues is to misunderstand the consequences
and relevance for policy, training, infrastructure, service governance, design, production and delivery, as well as
technical literacy and awareness.

MDB working group has developed a number of important documents that are intended to provide awareness of
the issues and present critical success factors that will generally be found in any successful e‐Procurement
strategy. These are “Strategic Overview: an Introduction for Executives”
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Strategi
cOverview.pdf) and “Strategic Planning Guide”(
http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Strategi
cPlanningGuide.pdf). These documents provide an executive style briefing on the main issues to consider when
planning for e‐Procurement implementation.

To deliver the maximum impact, an e‐Procurement implementation strategy will address the key elements
common to many government reform programs that involve multiple agencies including:
 Political and executive leadership and authority
 Management procedures, regulations and legislation,
 Broad stakeholder involvement
 Infrastructure
 Technology
More questions in respect to Strategic Plan for e‐Procurement are answered in this
presentation (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Reso
urces/e_Procurement_session_2_Part_2.pdf) shared with the trainees of the distance learning series of the WBI
that took place in Spring 2010. It explains the importance of setting the objective, bringing in the stakeholders and
suggests the pillars of the Strategic Plan for e‐Procurement Implementation that were applied to the case of
Panama.

Key considerations for successful implementation are listed in this presentation
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Chile‐
Compra‐by‐José‐Miguel‐de‐la‐Cuadra‐Public‐ProcurementPolicy2.pdf) by José Miguel de la Cuadra, Head of Public
Procurement Division of ChileCompra, Ministry of Finance made in Washington on April 28, 2010.

III. THE NEED TO PLAN FOR BUYER AND SUPPLIER ACTIVATION

A successful strategy for e‐Procurement implementation should include a plan to create the creation of a
marketplace. Many of the buyers and suppliers will have minimum, if any familiarity with the new e‐Procurement
technologies. Unless a significant number of them see benefits in changing to this method of doing business, there
is a risk that the government investment in e‐Procurement will fail to deliver its promise.

It is important for the governments to understand that in transition to e‐Procurement, both the buyers and
suppliers will need to learn new job skills as well as understand how these changes would impact their
business. The government needs to do whatever it takes to ensure this happens. This might mean qualifying
suppliers in terms of what information they can provide electronically or, particularly in the case of small specialist
suppliers, offering them training and even the technology to enable them to participate.

The MDB working group on e‐Procurement developed a special "Buyers and Suppliers Activation Guide"
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/BuyerS
upplierActivation.pdf); for the governments embarking on e‐Procurement implementation.

Summary Table for Buyer Activation Strategy
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/BuyerS
upplierActivation.pdf#page=13)
Summary Table for Supplier Activation
Strategy (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resource
s/BuyerSupplierActivation.pdf#page=16)

IV. THE CHANGING NATURE OF E-PROCUREMENT

This presentation
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Factors
andTools.pdf) of May 2010 made by Jaoa N Veiga Malta, a Senior Procurement Specialist at the World Bank, places
e‐Procurement as part of a wider procurement reform agenda. It describes past approach to procurement reform
and the new trends
andTools.pdf#page=5), the importance of using the OECD indicators
andTools.pdf#page=10), the key issues to be addressed in the country Strategic
Plans (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/F
actorsandTools.pdf#page=11) for e‐Procurement, the importance of identifying and capitalizing on "quick gains"
andTools.pdf#page=13) and undertaking sector analysis. It also presents case studies from Mexico
andTools.pdf#page=19), Peru
andTools.pdf#page=20), Panama
andTools.pdf@page=21) and Costa Rica
andTools.pdf#page=28).
In this content it is also useful to review a power point presentation made by Paul Schapper of Curtin University of
Technology, Australia on “E‐GP as a key component of Procurement Reform.”
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/E‐
GP_World_Bank_May_2009.ppt) This was presented at the distance learning training series on eGP organized by
the World Bank Institute in 2009. It provides an overview of e‐Procurement in general and in particular, covers
opportunities, challenges, key success factors of e‐Procurement implementation, risks, suggested roadmap and
lessons learnt.

Estimating Costs of e‐Procurement implementation

I. COSTING METHODOLOGIES
The topic of monitoring e‐Government costs has not received, to date, the same amount of attention as that of e‐
Government impact and benefits. It is quite difficult to quantify the costs of an e‐Procurement system. Common
misconception is to consider the CAPEX costs only and hence neglecting the OPEX costs, the costs of training and
support, maintenance and upgrades as well as necessary system improvements over time. The Synthetic Snapshot
of eGovernment Costs by Phases is presented here,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/D.1.3Ex
penditure_Study_final_version.pdf#page=15).

The European research on e‐Government Cost
Analysis (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources
/D.1.3Expenditure_Study_final_version.pdf) is a useful document for the policy maker. It outlines concepts,
methodologies and context to plan, deliver and maintain an e‐Government application. The same costing
methodology (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Reso
urces/D.1.3Expenditure_Study_final_version.pdf#page=12) could be applied to e‐Procurement system. Several
established methods exist, the most common are:
 Direct Costing: Direct and Indirect Variable Costs + Direct Fixed Costs
 Full costing: Direct Variable Costs + Direct Fixed Costs + Pro‐rate of Indirect Costs
 Activity based costing (ABC): This is a leading‐edge choice for EU public administrations (Greek Tax Agency),
but the research shows that it is being adopted or recommended in countries such as the U.S. and Australia.
 Total Cost of Ownership (TCO): Sometimes referred to as “Total Cost of Operation,” is a more modern and
prominent methodology, which is more specific to the field of ICT. It takes into consideration the cost of
software and hardware acquisition, maintenance, personnel training and technical support.

The research on e‐Government costs can be used to estimate costs of an e‐Procurement system. The following are
the major costs components of the costing exercise:

Planning phase
 Business planning costs
 Marketing planning costs
 System planning costs

Implementation phase
 System acquisition costs
 System development and implementation costs
 Costs of organizational change

Provision
 Own personnel operational costs
 Material operation costs
 Other operational costs

Maintenance
 Hardware maintenance/service costs
 Software maintenance/service costs
 Hardware/software upgrades costs
 Hardware/software replacement costs

Performance measurement and quality control
 Own personnel costs for input and output data gathering activity
 Won personnel for quality inspection/certification costs
 Costs of surveys of internal user satisfaction and attitudes
 Costs of surveys of external users satisfaction

Research and development
 Costs for research on and for initiatives in support of, service take up
 Costs for research and development of interoperability
 Costs for technological R&D to increase accessibility/usability of services
 Costs for R&D on new contents/new services

The same concepts may be applied to estimate the costs of the e‐Procurement system. The phases of e‐
Government procurement that can be mapped in a similar conceptual framework
penditure_Study_final_version.pdf#page=15), and the cost element structure can be put together in this format
penditure_Study_final_version.pdf#page=16). Even with the best mapping though, the intangible
costs (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/D.
1.3Expenditure_Study_final_version.pdf#page=17) are difficult to capture, due to human and organizational
factors inherent to the systemic changes that are in general caused by introduction of procurement reform and e‐
Procurement. The example of how this cost estimate model was adapted for costing e‐notifications is
presented here.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/cost_es
timation_for_e‐notices_by_European_Dymanics.pdf)

II. EXAMPLES OF COST REDUCTIONS

 Brazil: The federal Government of Brazil has procured R$ 19.5 billion in common goods and services in 2006, which
includes auctions and as well as others, less frequent modalities. Electronic auction was the most used modality
which alone resulted in savings of R$ 1.8 billion – about 14% of the bid value. Once again, in 2007 the electronic
auctions resulted in a cost reduction for the government of R$ 477.4 or about 12% of total value. Click here for
more details.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Brazils_
e‐procurement.pdf)

 South Korea, Procurement In 1997: the South Korean Government set up an online purchasing system offering
more than 420,000 products. The e‐Procurement system replaced a purchasing process that was regarded as
corrupt, non‐transparent, complicated and lacking accountability. It is estimated that the new system, which
required an initial investment of US$26 million, has generated savings of at least US$2.5 billion a year and is now
regarded as one of the most successful e‐Procurement projects in the world. The system has enhanced
transparency and public trust, and allows for cross‐agency comparisons of procurement, making the system more
accountable. The system cost $26 million and saved $2.5 billlion a year.

 India, Procurement: The Government of Andhra Pradesh set up an e‐Procurement Marketplace linking
government departments, agencies and local bodies with vendors. The system allows online access to bidders and
suppliers, which minimizes the human intermediary during pre‐bid and post‐bid processes. The automatic tender
evaluation functionality removed subjectivity in tender receipt and evaluation, increased the accountability of
procurement officials, and decreased opportunities for corrupt practices. A supplier participating in a tender
knows the list of other participating suppliers, the documents furnished by competitors, price quotations and the
evaluation result as soon as it is completed. Information on the status of tenders and award values is available to
any citizen through the site. The investment was US$1 million, made entirely by the private sector partner who
built the system. The Government of AP merely allowed recovery of investment through hosting of tenders and
transaction fees. The savings from the use of e‐Procurement were estimated to be 23%. The reduction in average
tender processing time was from 6 to 1.5 months. The increase in the average number of bids received was from
3.4 to 6.7 bids, which reduced a previous cartel formation and empowered SMEs suppliers. Increased accessibility
of the system reduced formation of cartels and increased bids by 100%.

 The other examples of the cost reduction associated with introduction of e‐Procurement in Brazil can be found
in this
urces/eGP_in_Brazil.pdf) of Dr. Florencia Ferrer, PhDCEO –FF/e‐Strategia Pública that he made in November 2009.
The cost savings from introducing electronic reverse auctions in Brazil are presented in this Power Point
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/eGP_in
_Brazil.pdf#page=15). Both of them were presented at the e‐GP Forum that took place in Washington, in
November of 2009.

 The transaction costs saving that resulted from the introduction of KONEPS system in Korea amount to 4,5
billion US dollars. Click
here (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/In
novating_Public_Procurement_through_KONEPS_Korea_by_Seu_Kang.pdf) to access the presentation listing
numbers on savings and enhanced productivity.

 Another example of cost reduction amounting to 53% after the e‐Tendering solution was implemented for the
Portuguese Ministry of Justice Procurement Directorate by Vortal is presented in this case study.
(siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Vortal_CaseSt
udy_PortugueseMinistryJustice.doc)

 Evory University, USA: Before implementing e‐procurement solution from SciQuest in 2006, each of Emory
University’s 350 departments ordered what it wanted, when it wanted and from whichever supplier it wanted.
Emory’s procurement office had little visibility into how much each department was paying for everything from
pens and paper to furniture and MRO supplies. After the system was introduced, the following costs savings were
realized: 6‐to‐1 return on investment; For every $1 spent, Emory University receives $6 in savings benefits; Positive
cash flow within 12 months; e‐Procurement solution of SciQuest was funded within its existing procurement
budget from the efficiencies generated by the new processes ‐ with no budget increases or general fund expenses;
Approximately 45% of savings was driven from the process efficiencies and 55% from negotiated discounts and
contract compliance.

 Overview of cost savings in various countries and potential annual savings of introducing E‐tendering in EU are
presented on these slides of the power point
presentation (siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/
OpportunitiesandChallengesbySanjayPradhan.pdf) delivered by Sanjay Pradhan, Vice President of the World Bank
institute on December 2008 as part of the World Bank knowledge sharing event.

 Cost savings analysis from implementation of e‐Procurement system in Andhra‐Pradesh is presented this power
point (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/e
GP_Andhra_Pradesh_cost_savings_and_benefits.ppt#page=10) by Ajay Sawhney, former Secretary IT&C and K.
Bikshapathi, former Project Manager.

 Cost savings from implementation of ChileCompra are presented on this
slide (siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Chile‐
Compra‐by‐José‐Miguel‐de‐la‐Cuadra‐Public‐ProcurementPolicy2.pdf#page=11) of the presentation by José Miguel
de la Cuadra, Head of Public Procurement Division of ChileCompra, Ministry of Finance made in Washington on
April 28, 2010.

 This assessment of the potential benefits from e‐invoicing in Europe,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/sepa‐
capgemini_study‐final_report_en_e‐Invoicesandsavings.pdf#page=30) carried out by Capgemini Consulting,
estimates potential annual benefits of up to €40 billion across Europe in the business‐to‐business field alone.

 Estimated cost reduction in
Europe: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources
/EU_2006_0173_f_en_acte_0.pdf#page=7) Government revenues account for some 45% of GDP and public
authorities purchase 15 to 20% of GDP or €1500 to 2000 billion in Europe every year. Electronic procurement and
invoicing could result in savings in total procurement costs of around 5% and reductions in transaction costs of
10% or more, leading to savings of tens of billions of Euros annually.

 Ultimately, the success or failure of an e‐Procurement implementation can only be judged by measuring
performance against the goals set at the outset. To do this, you need to develop a balance scorecard of Key
Performance Indicators—implementation, benefits, customer satisfaction and sustainability—and use it from day
one. The performance indicators expressed in cost savings results are demonstrated in power point
urces/Consip_includes_performance_indicators.ppt) of December 2008 by Gian Luigi Albano, Ph.D, a head of the
Research and development of the Italian Public Procurement Agency (Consip S.p.A.).

 Panama's eProcurement Platform,
Panacompra, (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Reso
urces/Presentación_para_Banco_Mundial_WashingtonApril2011.ppt) has allowed for significant savings and
increases in transparency. The examples presented in this power point illustrate the use of the framework
contract for fuel purchases which resulted in US$20 million savings in fuel budget and an increased number of
agencies (280 instead of 70) having the ability to buy it, as well as significantly reducing the purchase transaction
time for common goods from 56 to 3 days. Lessons learned are presented here.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Lessons
‐learned‐fromPanama.ppt)

Business Models for e‐Procurement Implementation

I. MAIN TYPES OF BUSINESS MODELS USED
Each implementation has its own set of benefits and business issues associated with it, which directly affect both
the government and the suppliers doing business with the government. Where there are a great number of public
procurement transactions already in place, the system implementation becomes a good potential candidate for
Public Private Partnership arrangement. For the countries with fewer numbers of transactions the government‐
owned and operated option might be a way to go, especially if there a strong political agenda that promotes
transparency and anti‐corruption.
In order to better understand the business arrangements required for an effective e‐Procurement system and to
better support governments looking at different approaches to the implementation of an e‐Procurement system,
the World Bank undertook a study to examine the business approaches and practices used by governments around
the
world (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/S
tudy_on_e‐GP_Business_Models_November_2009.pdf) for the execution and operation of their e‐Procurement
systems. So finding the answers to basic questions on the total value of public procurement, average yearly
number of transactions, number of goods procurement transactions vs. consulting services procurement will also
be useful for the preferred business model discussions. An overview of the various business models and the
context for making this decision is presented here.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/eProcu
rement_Session_4_eProcurement_Business_Models.pptx)

MODEL 1: SHARED SERVICE
Shared Service – A third‐party e‐Procurement service that is fully managed, owned and operated by the third party
and used by one or more governments and their suppliers. This approach has been used in Canada where the
choice of a third‐party service offering had more to do with bringing together multiple independent jurisdictions
into one national portal. Though each jurisdiction had the means to establish its own system, they believed an
independent service provider would be better suited to support to their collective objectives than a government‐
run service. The overall objective was to establish transparency across the country, and to promote and support
open and unrestrictive access to all government opportunities, regardless of vendor jurisdiction. For the details,
please click
here. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/S
tudy_on_e‐GP_Business_Models_November_2009.pdf#page=12)

MODEL 2: PRIVATE PUBLIC PARTERSHIP
Public Private Partnership (PPP) – A government e‐Procurement solution that is managed, owned and operated by
a third‐party service provider, often with the intent to transfer the platform back to the government in the
future. This approach has been used in India. For the details, please click
here. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/St
udy_on_e‐GP_Business_Models_November_2009.pdf#page=22)
PPPs are often the chosen path when the objectives are to ease the financial constraints on the government while
at the same time increase its efficiency and effectiveness. Similarly, there is also the need to understand the key
aspects that play a significant role in the effectiveness and indeed the appropriateness of PPPs in such
scenarios. InfoDev supported the development of the Knowledge Map and the
Handbook (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resourc
es/HD2006‐LW‐Bankmap_by_InfoDev.pdf) that helps identify such specifics, and highlight the importance of
policies, programs, services, and instruments that may facilitate the engagement of the private sector into areas
that were hitherto the domain of the government. It also described the various models of PPP
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/HD200
6‐LW‐Bankmap_by_InfoDev.pdf#page=19), key objectives and
issues (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/
HD2006‐LW‐Bankmap_by_InfoDev.pdf#page=25), key legal and regulatory pre‐requisites
6‐LW‐Bankmap_by_InfoDev.pdf#page=27), institutional roles and responsibilities
6‐LW‐Bankmap_by_InfoDev.pdf#page=33), major political constraints and challenges
6‐LW‐Bankmap_by_InfoDev.pdf#page=37), identification and structuring feasible PPP Projects
6‐LW‐Bankmap_by_InfoDev.pdf#page=39), financial challenges and constraints
6‐LW‐Bankmap_by_InfoDev.pdf#page=43), major risks in PPP projects, best practices in tendering, evaluating, and
negotiating PPP transactions
6‐LW‐Bankmap_by_InfoDev.pdf#page=51), lessons learned in monitoring PPP agreements
6‐LW‐Bankmap_by_InfoDev.pdf#page=59).

MODEL 3: GOVERNMENT OWNED AND OPERATED
Government Owned and Operated – A government developed and operated e‐Procurement solution that may or
may not have been delivered by third‐party partners. In Singapore, where the government had the in‐house
technical capabilities and resources to develop and maintain its own e‐Procurement system, a government owned
and operated system made the most sense. Even though the system is owned and controlled by the government,
the DSTA (the operating agency for the system) operates the service as an independent business service offering
which is fully self‐funded through the application of service fees. Users, both government and vendor, enter into
an agreement with DSTA to use the system. Similar to the third‐party service providers under the other three
approaches, the DSTA provides all of the necessary technical services to support the operation and development of
the system as well as help desk and management services to support users and to continue building the online
marketplace. To better support its customer base, the DSTA continues to plan and develop new features and
functions for the system as the product evolves.This approach is the most common worldwide. For a detailed
example from Singapore, please click
here. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/S
tudy_on_e‐GP_Business_Models_November_2009.pdf#page=29) More information about the eProcurement
system GeBIZ is here.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Singap
ore_eGP_Overview(May2011).pdf)

MODEL 4: GOVERNMENT MANAGED SERVICE
Government Managed Service – A government managed e‐Procurement solution that is operated and owned by a
third‐party partner. This approach has been used in Philippines where the choice of a third‐party system had to do
with mitigating the risk that would be associated with the development, management and operation of an e‐
Procurement system. The government was looking for a technical service partner and wanted to establish a service
agreement for the development and delivery of the backend system. The service provider is the technical delivery
partner, providing all services required for the development and delivery of the system. The service provider has
ownership of the physical application and infrastructure; however, the Philippine Government retains ownership
over the market brand, PhilGEPS, the URL, all data in the system and the overall business service operation. The
government retains responsibility for all users of the system, as well as users who enter into a contractual relation
with the government. The Philippine government has made a significant investment over the years in the
development of the PhilGEPS operation, including office space and support staff required to support the system,
but in the long term it maintains control of the business operation and can opt to acquire the current platform at
the end of the contract period. For the details, please click here.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Study_
on_e‐GP_Business_Models_November_2009.pdf#page=34)
The reviews of the different e‐Procurement solutions for Canada, Singapore, the Philippines and the State of
Karnataka uncover a number of variations in business approach and system implementation strategies. The
common principles for an e‐Procurement system, however, remain the same: transparency, efficiency and the
establishment of a more open and competitive environment for government procurement.

Regardless of the business model used, it is recommended to always have Service Level Agreements in place. A
sample Applications Service Agreement can be accessed here.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Applica
tions_Service_Provider_Agreement.pdf)

II. EXAMPLES OF DIFFERENT BUSINESS MODELS
Below is a number of presentations made by representatives of various countries. They are here for information
purposes only, not as necessarily the examples to follow:

 Chile: ChileCompra Business
Model (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Re
sources/Chile‐Compra‐by‐José‐Miguel‐de‐la‐Cuadra‐Public‐ProcurementPolicy2.pdf )(a presentation from
2011 training on e‐procurement conducted by the World Bank)
 Italy: Consip Business Model (a presentation by Gian Luigi Albano, Ph.D, 2009)
 India: Implementation Approach through PPP
approach (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/
Resources/eGP_Andhra_Pradesh_cost_savings_and_benefits.ppt#page=6)(a presentation by Ajay
Sawhney, former Secretary IT&C & K.Bikshapathi, former Project Manager, made in December 2008 as
part of the World Bank’s knowledge sharing event)
 Business Models for E‐GP Systems: A review of different approaches, a presentation by Joseph Fagan, WB
Consultant; ADB Consultant
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resource
s/Bus_Models_a_review_of_different_approaches_by_JOeFagan_WBconsultant_GREAT.pdf)

Legislation, Regulation and Policy

I. PUBLIC PROCUREMENT LAWS OVERVIEW

When developing public procurement laws, numerous countries followed the UNCITRAL Model Law on
Procurement of Goods, Construction and Services as a basis for the development of public procurement Law in
their own countries. Due to the fact that the conditions for procurement have changed since the model UNCITRAL
law was drafted in 1994, and specifically in the area of e‐Procurement, UNCITRAL established a working group I
(Procurement) to develop a revised Law and a Guide to its Enactment. The main task of this Working Group is to
update and revise the Model Law, so as to take account of recent developments in public procurement. The
revised version of the Law is expected to be finalized by summer 2011.

The intermediate documents developed by this Working Group are posted on the UNCITRAL website for e‐
Procurement upon (http://www.uncitral.org/uncitral/en/commission/working_groups/1Procurement.html) their
availability in various language versions. A presentation from the member of this Working Group made in April
2010 as part of the WBI’s e‐Procurement distance learning training is available here.

Thanks to UNICITRAL’s Public Procurement Model Law, there are a number of countries with very similar laws
enacted. At the same time, it should be noted that the countries with similar legislation basis are at very different
stages of e‐Procurement implementation. That leads to a recommendation that countries just embarking on e‐
Procurement agenda need to look into e‐Procurement solutions already developed by countries with similar public
procurement legislation but more advanced when it comes to e‐Procurement.

Most countries have supporting e‐Legislation in place that is well supported. This legislation specifically supports
the use of e‐Documents and e‐Signatures to conduct online business. The Cyber laws are more widely focused on
e‐Commerce rather than just e‐Procurement.

The existing legislation was not always well supported or enforced. The unavoidable after‐the‐fact application of
legislation means that legal means alone will not effectively regulate e‐Procurement. This means that the influence
of system functionality, management control, monitoring procurement process information, and internal audit will
need to be effective to achieve good procurement practice.

II. LEGAL TREATEMENT OF ELECTRONIC AUTHENTICATION AND E-SIGNATURES

Creating trust in electronic procurement is of great importance for its development. Special rules may be needed
to increase certainty and security in its use. Such rules may be provided in a variety of legislative texts:
international legal instruments (treaties and conventions); transnational model laws; national legislation (often
based on model laws); self‐regulatory instrument;or contractual agreements.

Electronic authentication legislation and regulation has taken many different forms at the international and
domestic levels. Many countries have followed the standard UNCITRAL laws on e‐
Signatures (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resour
ces/ml‐elecsig‐e.pdf) and UNICITRAL law on e‐
Commerce. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resou
rces/UNCITRAL_model_law_on_e‐commerce.pdf)

UNICITRAL defines electronic signature as “means data in electronic form in, affixed to or logically associated with,
a data message, which may be used to identify the signatory in relation to the data message and to indicate the
signatory’s approval of the information contained in the data message. It also defines authentication as "means a
procedure established by agreement to determine whether a payment order or an amendment or revocation of a
payment order was issued by the person indicated as the sender.”
Three main approaches for dealing with signature and authentication technologies can be identified as:

THE MINIMALIST APPROACH

(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Electro
nic_Authentication_and_Signature_Methods.pdf#page=36) Some jurisdictions recognize all technologies for
electronic signature, following a policy of technological neutrality. This approach is called minimalist because it
gives a minimum legal status to all forms of electronic signature. Under the minimalist approach, electronic
signatures are considered to be the functional equivalent of handwritten signatures, provided that the technology
employed is intended to serve certain specified functions and in addition meets certain technology‐neutral
reliability requirements.

THE TECHNOLOGY SPECIFIC‐APPROACH

nic_Authentication_and_Signature_Methods.pdf#page=39) Under a technology‐specific approach, regulations
would mandate a specific technology to fulfill the legal requirements for the validity of an electronic
signature. This is the case, for instance, where the law, aiming at a higher level of security, demands applications
based on Public Key Infrastructure. Since it prescribes the use of a specific technology, it is also called the
“prescriptive” approach.

With the technology‐specific approach the legislation typically favors the use of digital signatures within a PKI. The
way in which PKIs are structured, in turn, varies from country to country according to the level of government
intervention. Here, too, three main models can be identified:

‐ Self‐regulation: Under this model, the field of authentication is left wide open. While the government may
establish one or more authentication schemes within its own departments and related organizations, the private
sector is free to set up authentication schemes, commercial or otherwise, as it sees fit.

‐ Limited government involvement: The government might decide to establish a voluntary or mandatory high‐level
authentication authority. In this case, authentication service providers may find it necessary to interoperate with
the high‐level authentication authority to have their tokens of authentication (or other authenticators) accepted
outside their own systems.

‐ Government‐led process: The government may decide to establish an exclusive central authentication service
provider. Special‐purpose authentication service providers may also be established with government approval.

THE TWO‐TIERED OR TWO‐PRONGED APPROACH

nic_Authentication_and_Signature_Methods.pdf#page=41) In this approach, the legislation sets a low threshold of
requirements for electronic authentication methods to receive a certain minimum legal status and assigns greater
legal effect to certain electronic authentication methods (referred to variously as secure, advanced or enhanced
electronic signatures, or qualified certificates). At the basic level, legislation adopting a two‐tiered system
generally grants electronic signatures functional‐equivalence status with handwritten signatures, based on
technologically neutral criteria. Higher‐level signatures, to which certain rebuttable presumptions apply, are
necessary to comply with specific requirements that may relate to a particular technology. Currently, legislation of
this type usually defines such secure signatures in terms of PKI technology.

III. CHANGES IN DIGITAL SIGNATURES REQUIREMENTS

The requirement for the digital signatures is likely to hinder the development of e‐Procurement initiates and limit
the number of companies, especially SMEs, participating in the government bids. There is no need to impose
technology on small business. A good practice is to introduce a simplified authentication process requiring only
online registration on the government’s e‐Procurement platform in order to gain access to the information on
bidding opportunities. Online registration would also give the business a Digital Certificate as required by the
legislation. Only after a certain company has actually been short‐listed, the government purchaser may decide to
require for the short‐listed companies to verify their registration credentials. This approach is similar to that in the
United States, Australia and Singapore. It can also be noted that the requirement for a Digital Signature is based
on the early UNCITRAL model law, which has since been changed and which now makes no reference to this
procedure.

IV. THE EU POLICY AND LEGISLATIVE FRAMEWORK FOR ELECTRONIC PUBLIC
PROCUREMENT

In the framework of the Lisbon Strategy, the EU has committed itself to improving the legal and administrative
environment to unlock business potential. This Action
Plan (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Ac
tion_Plan_for_implementing_legal_framework_2004.pdf) for the implementation of legal framework for e‐
Procurement was adopted in April 2004 by the Commission for European Communities as part of the legislative
package of Procurement Directives, 2004/18/EC and 2004/17/EC. These Directives provide a coherent framework
for conducting procurement electronically in an open, transparent and nondiscriminatory way, establish rules for
tendering electronically and fix the conditions for modern purchasing techniques based on electronic means of
communication.

Major barriers to cross‐border access to electronic services of public administrations are linked to the use of
electronic identification and of electronic signatures. The main barrier is the lack of interoperability, be it legal,
technical or organizational. This Action Plan on e‐signatures and e‐
identification (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Reso
urces/Action_Plan_on_e‐signatures_and_e‐identification.pdf) proposes concrete actions to facilitate the provision
of cross‐border public services in the Single Market and enhance cross‐border interoperability of electronic
identity in European union countries.

This article “Lessons from the PROCURE‐project: Electronic Signatures as Obstacle for Cross‐Border E‐Procurement
in Europe”
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Europe
_Lessons_from_the_PROCURE_project.pdf) is an excellent overview that presents success‐factors and barriers for
the adoption of cross‐border e‐Signatures from a legal point of view. It presents a comparison of the national
profiles from Germany and the PROCURE pilot participants Czech Republic, France, Spain, and Sweden, and
provides recommendations for the European legislation and individual measures to better align national
regulations and the mutual recognition of electronic signatures in e‐Procurement among the EU Member States.

To learn about the specifics of the EU Policy for Electronic Public Procurement, click
here (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/E
U_policy_for_e‐procurement_by_European‐Commission_Internal_Market_and_Services.ppt) to access the Power
Point presentation made by Julia Ferger, European Commission, DG Internal Market & Services at the e‐GP forum
that took place in Washington, D.C. in November of 2009. A number of speciifc regulatory Framework questions
are answered in
this presentation (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/R
esources/Regulatory_Framework_for_eGP_from_UNCITRAL_secretariat.pdf) by Caroline Nicholas of UNCITRAL
Secretariat.

V. REGULATORY FRAMEWORK EXAMPLES FROM COUNTRIES

 Below is a number of country specific presentations providing an overview of their legal and regulatory
approaches. They are here for information purpose only:
 JAMAICA: Regulatory Framework For e‐
GP: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Ja
maica_eGp_regulatory_Framework.pdf) a presentation made in 2009 by Shirley Gayle Sinclair, Ministry Of Finance
& the Public Service
 THE PHILIPPINES: The experience of Philippines in setting up the regulatory framework for eGP,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Phillipi
nes_Setting_Regulatory_Framework.pdf) a presentation made in 2009 by Rosa Clemente, Director of PhilGEPS/IT
 E‐procurement at work: A practical experience in
Italy. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/e‐
procurement_at_work_a_practical_experience_in_Italy.pdf) This paper addresses the legislative context for e‐
Procurement in Italy and some practical experiences carried out in compliance with this legislation. Italy was one
of the first countries in the EU to adopt a legislation on e‐Procurement which allows Public Administrations, both
central and local, to carry out their purchase activities using electronic means. Italy has also been considered as an
example by the EU legislator when adopting the directives on e‐Procurement.
 This
urces/Presentation_civil_law_and_common_law.ppt) summarizes successful reform of procurement systems and
describes the differences in countries using common law vs civil law and implication on procurement and
eprocurement legal framework.

Functional and Non‐Functional Requirements

I. FUNCTIONAL REQUIREMENTS FOR IMPLEMENTATION PHASES AS DEFINED BY MDB
This sub‐section is designed to provide the responsible decision makers on what functions or qualities they could
seek from the e‐Procurement system that is either developed by an agency or purchased as a solution or
implemented through a third party provider. Despite considerable evidence and advice that e‐Procurement is
primarily a reform program of many dimensions, the first step taken by many authorities is to seek out what are
the available ‘systems’. The specifications of such systems are defined in terms of functional requirements and the
systems qualities are defined in terms of non‐functional requirements.

Translating the objectives and principles of e‐Procurement implementation into functional specifications and
standards is made considerably easier when the different phases of e‐Procurement implementation are clearly
understood by the authorities. The experience proves that a ‘big bang’ approach to e‐Procurement is expensive,
disruptive and will more than likely result in failure. Instead, by specifying the task in terms of phases tends not
only to map out a low risk path, but also assist in the specification of the functions themselves. The order of
implementation phases suggested by MDB’s working group is consistent with the experiences from many countries
and is consistent with a number of different approaches and models. The scheme representing the e‐Procurement
implementation phases is presented here.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/e‐
GP_Specifications_Paper.pdf)

The suggested order of implementation phases is as follows:

PHASE 1: E‐BIDDING/E‐TENDERING: This method is used for high value low volume goods and services. The central
role of this system is to allow the Bid process to be transparently and consistently initiated and maintained as they
progress through contract award. The scope of the system commences from the time an authority decides to enter
into the Bid process.

PHASE 2: E‐PURCHASING:
Government procurement based on the use of on‐line price quotes is e‐Purchasing. This method is used for high
volume low‐value goods and services, for which tenders are not required. Instead, a list of sources of supply is
used for such purchases. The operational capabilities which make up an e‐Purchasing service suitable for public
procurement are specified and are consistent with those of the e‐Tendering system. Examples of e‐Tenders
implementation in various countries:

PHASE 3: E‐REVERSE AUCTIONS: The operation of e‐Reverse Auctions is similar to e‐Purchasing except that the
online quoting facility has the capacity to operate interactively in real time with bid prices posted instantaneously
during the process. Some governments consider e‐Reverse Auction to be a special case of e‐Bidding while others
see it as a part of e‐Purchasing. The UNICITRAL working group has analyzed these points and concluded to treat
the e‐Reverse Auction as a procurement method by itself or alternatively as an optional phase in other
procurement methods. This was the approach adopted by the MDB working group as well. UNCITRAL described e‐
Reverse Auction as an on‐line, real‐time dynamic auction between a buying organization and a number of suppliers
who compete against each other to win the contract by submitting successfully lower priced bids during a
scheduled time period. Where e‐Reverse Auction systems are to be financed by the MDB, a certain set of
Guidelines is supposed to be followed in evaluation of the e‐Reverse Action features, standards and operations to
ensure that it satisfies the conditions that follow in
these Guidelines (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/R
esources/e‐reverse_auction‐requirements.pdf#page=3) for MDB financed procurement.

Within these phases there are incremental steps which can also be implemented
in phases (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resourc
es/e‐GP_Specifications_Paper.pdf#page=10) or simultaneously, depending on the level of readiness of the service
provider systems. This is an optimum process design because it facilitates institutional changes and the
modernization of the civil service and starts from the simplest functions and progresses to the most complex along
a controlled development path. Following this approach makes for a faster, less expensive, and institutionally
sound introduction of e‐Procurement.

II. NON-FUNCTIONAL REQUIREMENTS
Non‐functional requirements define systems qualities. They are as follows:

Usability: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resourc
es/functional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=71) Contracting Authorities
may envisage user support operations providing adequate support to users if and when required. This Table
((http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/functi
onal_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=72) demonstrates a number of
methods to achieve the desired user support.

Reliability :
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/functio
nal_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=76) The degree of reliability of a system
can be assessed in relation to the reliability of its components, allowing reliability requirements to be expressed at
the component/unit level, rather than entire system level. Reliability requirements are related to the quality of a
system, and are usually defined quantitatively. For a list of typical requirements, click here.
nal_requirements_for_conducting_eGP_under_EU_Framework.pdf)

Interoperability: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/R
esources/functional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=77) The
Interoperability Framework distinguishes between organizational, semantic and technical aspects of
interoperability. In the following, non‐functional interoperability requirements are analyzed according to three
levels: organizational, semantic and technical.

Security:
nal_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=86) Concern about security is one of the
major factors restricting the growth of e‐Procurement. In summary, an organization should consider securing itself
against damage to business reputation; failure to comply with internal policies, national requirements and the law;
loss, corruption or sharing of commercially sensitive or business critical information; loss of business continuity
due to loss of business critical systems or information; loss of commercial position due to inappropriate sharing of
commercially sensitive information or the inability for potential suppliers to participate.

III. OVERVIEW OF FUNCTIONAL REQUIREMENTS UNDER THE EU FRAMEWORK
This sub‐section provides an overview of the proposed technical specifications for the design of the European e‐
Procurement system capable of supporting the core e‐Procurement functionalities. European Commission has
produced Functional requirements reports consisting of Volume I and Volume II. These reports analyze procedural
aspects of the e‐Procurement procedures described by the European directives and include functional and non‐
functional requirements for implementing them electronically.
Volume
I (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/functi
onal_requirements_for_conducting_eGP_under_EU_Framework.pdf) presents the information and activity flows
for all e‐Procurement procedures, functional requirements, non‐functional requirements, an overview of technical
specifications with a conceptual model and high‐level Use Cases, and open issues related to e‐Procurement.
Volume
II (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/functi
onal_requirements_for_conducting_eGP_under_EU_FrameworkVOLUME2.pdf) presents an in‐depth technical
analysis (Use Case analysis) for the main actors and functionalities of an e‐Procurement system supporting all e‐
Procurement procedures. It also provides scenarios for interested parties to experiment with the dynamic
demonstrators (see static (http://ec.europa.eu/idabc/eprocdemos/)
and dynamic (http://forge.osor.eu/projects/eprocdemos/) versions), developed in the context of this project,
so as to further understand the concepts described in the Functional Requirements report.

Technologies and Applications

I. E-PROCUREMENT APPLICATIONS AND SYSTEMS: A QUICK OVERVIEW

In order for the countries to decide on the type of the e‐Procurement system to be purchased or developed, it is
necessary that they first answer the basic questions such as “What is the total volume of the procurement?”,
“What is the number of the procurement transactions?”, “What is the number of goods procurement and
consulting services procurement?”, “What is the total monetary volume of the public procurement?” so that an
adequate system with certain capacity is planned for.
It is also important to think of the technology and choice of the applications in light of the goals to be achieved
through the introduction of e‐Procurement. Below are a few of the useful power point presentations:

 This presentation on eGP: Technology
Considerations (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Re
sources/ET_Technology_considerations_v1.0.pdf) that was made by Eduardo Talero as part of the distance
learning training series on eGP organized by the World Bank Institute in 2009. It covers the issues of distinction
between tactical and strategic e‐Procurement system development, how different technologies work in each case
and the importance of using open standards‐based technologies.
 It is also useful to review this presentation on the Technology Solutions for e‐procurement,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Final_Sl
ides_for_WB_e‐GP_PresentationAndhraPradesh.ppt) which was made in 2009 by Vidyadhar Muthyala, Project
Manager of ICT Department, government of Andhra Pradesh and a presentation by Ms. Rafaella Migliorini on
Integrity protection of e‐procurement
systems. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resource
s/eProcurement_Session_5‐IntegrityProtection.ppt) Both presentations were made as part of the same distance
learning training on e‐GP organized by the World Bank Institute in 2009.

II. THE RESULTS OF E-GP RESEARCH BY MDB'S WORKING GROUP
This survey of e‐procurement
systems (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources
/International_eGP_Survey.pdf) undertaken by the MDBs presents the results of the survey undertaken in
Asia/Oceania, South America and Europe. The survey was developed by Curtin University and International
Governance Solutions using an experienced research and consultancy team. Their work was funded by the Asian
Development Bank, the Inter‐American Development Bank and The World Bank.

This survey has aimed to provide information for jurisdictions which are at the inception stage of implementing e‐
Procurement and was designed to provide information on e‐Tendering, e‐Reverse Auctioning and e‐Purchasing
systems in relation to:
 System functionality achieved;
 The governance, business, management, and technical, issues that were addressed in the transition to e‐
Procurement;
 The costs of development or acquisition, and implementation of the systems, and the annual costs to operate and
maintain the systems
 Benefits recognized by stakeholders;
 Outcomes and outcome measures;
 The success factors and lessons learnt;
 Other observations as appropriate.

The survey covered systems in fourteen countries, listed below. The countries represent various size of the
procurement market as well as the degree of integration of systems and degree of centralized management of
procurement. The public procurement websites for the responding countries are as follows: Australia (NSW), Hong
Kong, Korea, Philippines, Singapore, Italy, Romania, Norway, Brazil,Argentina, Chile, Mexico, Finland.

The survey was structured to target system functionalities, key system governance and management and technical
issues, implementation, costs and key lessons learnt. The survey structure is shown in this Table.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Interna
tional_eGP_Survey.pdf#page=29)

Given the complexities and rapid evolution in the technology, it seems likely that no particular development can be
accepted as a reliable benchmark other than the use of international open standards which is evident at several
levels in the responses from 14 countries surveyed in 2007 by the MDB working group on e‐
procurement. This Table (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOL
OGIES/Resources/International_eGP_Survey.pdf#page=46) shows the various products that were applied to
different components of the systems. It should be noted that most systems use commercially available products
and open standards (eg. XML).

III. TECHNOLOGY PLATFORMS
When planning the implementation of the e‐Procurement solution, the government need to be aware of the top
technologies and trends of the IT industry identified by Gartner, Inc in 2009. They are:
 Virtualization
 Cloud Computing
 Servers – Beyond blades
 Web – oriented architecture
 Enterprise Mashups
 Specialized systems
 Social software and social networking
 Unified communications
 Business intelligence
 Green IT

IV. ENTERPRISE ARCHITECTURE

Enterprise Architecture (EA) is needed as a foundation for all government processes and subsequent
workflow/data exchange/technical standards. It is critical success for all types and scale of e‐government programs
including e‐procurement. EA is a robust planning function that helps organizations to understand the processes by
which the business strategies turn into operational reality. Hence, establishing a standard methodology for
conducting architecture planning and implementation is vital. This quantities analysis “Understanding the impact
of enterprise architecture on connected government” prepared by National University of Singapore (NUS) and
Institute of Systems Science presents a good definition, case studies and perspective from most advanced
countries. For full report, please click here.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/EA‐as‐
Platform‐for‐Connected‐Government[Phase1Report].pdf)

V. RISK MANAGEMENT AND ANALYSIS

Risk management is the process of identifying and assessing risk, reducing it to the acceptable level and
implementing the right mechanisms to maintain that level. There is no 100% secure environment. Every
environment has vulnerabilities and threats to a certain degree. Risk analysis has four major goals:

 Identify assets and their values
 Identify vulnerabilities and their threats
 Quantify the probability and business impact of these potential threats and their security
 Provide an economic balance between the impact of the threat and the cost of the countermeasure

There are special risks when it comes to the standards. The immature status of many, if not most, of the standards
on which e‐Procurement is dependent poses special risks to governments. These risks include systems
obsolescence, lack of interoperability, higher operating costs, vested interest influences, sub‐optimal functionality
and reduced innovation and, more broadly, retarded technological enablement of commerce generally. These
financial, commercial and social risks mean that these standards become essential dimensions of government
policy, legislation and leadership. It is important that executives and managers be able to appreciate and engage
with these issues if the risks to governments are to be managed. Web architects and developers may recoil in
horror that government policy and leadership might intrude into these issues. But government is an obvious
leader, not suggesting that it should or could regulate such standards, but because of the significance of its choices
for its own operations and the weight that these carry in the economy. For more risks identified by the MDB
working group, please click here.
ionversusTechnologyinPublicProcurement.pdf)

VI. SECURITY ISSUES

One of the major issues concerning e‐Procurement initiatives is security. Governments usually resist from sending
sensitive information over the Internet for security reasons. This Guidance
notes (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/s
ecurity+v5‐Guidance.pdf) developed by the UK national e‐Procurement project by Strategic Procurement Services,
describes different types of security issues that organizations face and outlines realistic solutions and approaches
that can be implemented to reduce the risk.
Once the government decides on the comfortable security level, it will affect a number of subsequent security
decisions. This
urces/eProcurement_Session_5‐IntegrityProtection.ppt) by Mr. Rafaella Migliorini of Consip, includes a number of
interesting graphs demonstrating the security concepts such as chosing the right security level, security principles
and top‐down approach to security.

Various security mechanisms provide a secure communication interface, mainly for the exchange of documents
between procurement authorities and economic operators. The standards and the required specifications need to
be provided for ensuring adequate authentication, digital signature, non‐repudiation, data integrity and
encryption. The main issues to consider when creating the secure environment are as follows:
 Authentication
 Authorization
 Confidentiality
 Integrity
 Non‐repudiation
 Audit trailing facility
 Firewalls
 Secure communication (data transfer) with the client (user or third party system/application)
 Encoding stored data
 Digitally signed documents

The international survey of 14 countries undertaken by the MDB’s working group on e‐Procurement prepared
this summary table (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES
/Resources/International_eGP_Survey.pdf#page=50) which lists types of technologies applied by different
countries.

VII. OVERVIEW OF AUTHENTICATION TECHNIQUES
A number of different authentication techniques have been developed over the years. Each technique aims at
satisfying different needs and provides for different levels of security, and entails different technical requirements.
Electronic authentication and signature methods may be classified in three categories based on:

 Knowledge that the user or the recipient has (e.g. passwords, personal identification numbers (PINs).
 Physical features of the user (e.g. biometrics)
 Possession of an object by the user (e.g. codes or other information stored on a magnetic card).
 A fourth category might include various types of authentication and signature methods that, without falling under
any of the above categories, might also be used to indicate the originator of an electronic communication (such as
a facsimile of a handwritten signature, or a name typed at the bottom of an electronic message).

Technologies currently in use include digital signatures within a public key infrastructure (PKI), biometric devices,
PINs, user‐defined or assigned passwords, scanned handwritten signatures, signature by means of a digital pen,
and clickable “OK” or “I accept” boxes. Hybrid solutions based on a combination of different technologies are
becoming increasingly popular, such as, for instance, in the case of the combined use of passwords and transport
layer security/secure sockets layer (TLS/ SSL), which is a technology using a mix of public and symmetric key
encryptions.

VIII. DIGITAL SIGNATURES, PKI AND CERTIFICATION SERVICE PROVIDERS
“Digital signature” is a name for technological applications using asymmetric cryptography, also referred to as
public key encryption systems, to ensure the authenticity of electronic messages and guarantee the integrity of the
contents of these messages. To better understand the technical notions and terminology behind the concept of
the digital signature, please review this report "Promoting confidence in electronic commerce: legal issues on
international use of electronic authentication and signature
methods" (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resourc
es/Electronic_Authentication_and_Signature_Methods.pdf) which provides a detailed description of cryptography,
public and private keys, hash function, generation of a digital signature, verification of digital signature and other
uses of digital signature technology. To verify a digital signature, the verifier must have access to the signatory’s
public key and be assured that it corresponds to the signatory’s private key.

A security framework based on the general principles (confidentiality, non‐discrimination, non‐repudiation, etc)
supported by the Public Key
Infrastructure (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Res
ources/Public_Key_Encryption_Process.pdf) can be implemented to support the needs of an e‐Procurement
system. This security framework enables the management of Public Key Certificates for identifying the user and for
securing the communication between the users of the application and the servers that host the application
environment (Web Server) and the corresponding business logic (Application Server) as shown in Figure 4‐1.
nal_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=88)
It should be noted that the latest trends indicate that the requirement for the digital signatures may hinder the
development and wider uptake of the e‐Procurement. The requirement for a Digital Signature is based on the early
UNCITRAL model law, which has since been changed and which now makes no reference to this procedure.

Standards

I. OVERVIEW OF STANDARDS
It is quite important for the government leaders to understand the significance of e‐Procurement standards for
policy and effective operation of the government.
While of critical importance, the development and adoption of standards is inherently complex, reflecting the
complexities of the economy and the broader community. Good standards are taken for granted and are
substantially invisible. The immature status of many, if not most, of the standards which e‐Procurement is
dependent upon, poses special risks to the government. These risks include system obsolescence, lack of
interoperability, higher operating costs, vested interests influences, sib‐optimal functionality and reduced
innovation. These financial, commercial and social risks mean that these standards become essential dimensions of
government policy, legislation and leadership. It is important that executives and managers are able to appreciate
and engage with these issues of standards if the risks to the governments are to be managed.

Perhaps there is nowhere that standards are undergoing such broad and rapid developments as for the online
environment generally and for e‐Commerce specifically. e‐Procurement, as part of e‐Commerce, is inextricably
part of these developments. The standards can help in implementation of e‐Procurement through the following:

 Enhance B2G/G2G connectivity and interoperability
 Generate trust in electronic experience
 Enhance competition and inclusion
 Enhance efficiency and flexibility of public procurement function
 Enhance cooperation and transparency
 Facilitate evolution and innovation
 Increase return, reliability of investments
 Avoid vendor lock‐in

This
urces/ETalero‐Standards_v1.1.ppt) by Eduardo Talero, an Advisor to the World Bank on e‐Procurement, includes
an overview of standards to consider when implementing different stages of e‐Procurement. Another useful
overview of standards in e‐
procurement (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Reso
urces/e_Procurement_Session_5_Standards_in_eProcurement.ppt) was presented at the 2010 e‐Procurement
distance learning series.

In selecting standards to ensure interoperability in e‐Procurement, the governments need to be aware that their
decisions will strengthen or hinder the broader roll‐out of the e‐Commerce development throughout the
economy. A partial list of issues around which the standards development for e‐Commerce is relevant to e‐
Procurement are presented in this figure.
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/eGPSta
ndards_0.pdf#page=14) They
are catalogues, (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Re
sources/eGPStandards_0.pdf#page=16) system interoperability,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/eGPSta
ndards_0.pdf#page=18) legislation, (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONAN
DTECHNOLOGIES/Resources/eGPStandards_0.pdf#page=21) security and
authentication. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/R
esources/eGPStandards_0.pdf#page=22) These standards’ environments overlap and are not all technical.

Much of the requirements for security as well as authentication, for example, are to do with organizational
management systems rather than software. The idea here is that the e‐Commerce standards cannot be well
defined in a technical sense –it relates to whatever conventions, rules, protocols or regulations (technical or
otherwise) that may influence the efficient conduct of commerce in the online environment, and these are
evolving.

The Standards in e‐Government Procurement: 4 simple observations on Information Security for
Managers (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resourc
es/eGP_Session_5_Security.ppt) is another useful presentation made by William McDonald Buck, a consultant to
the World Bank as part of the distance learning training series on eGP organized by the World Bank Institute in
2009.

II. E-CATALOGUES STANDARDS

Standardization in the field of e‐Catalogues is necessary to increase efficiency through the reduction, or even
elimination of manual intervention. The automated processing of eCatalogues appears to be possible only when
eCatalogues are formed and exchanged in a standardized manner i.e. when they are interoperable.

Currently, there is a great number of electronic catalogue formats, as well as of product description and
classification schemes for the exchange of electronic catalogues between consumers, vendors and economic
operators.
This report (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIE
S/Resources/VolII_Report_on_standartization_activities.pdf) developed by European Dynamic for the
European Commission aims at identifying and presenting the existing eBusiness initiatives/standards developed by
the international standardization bodies (OASIS, CEN/ISSS and UN/CEFACT) in the area of eCatalogues.

Two main eCatalogue standards have been emerging in parallel, namely UBL 2.0 and c‐Catalogue developed
by OASIS and CEN/ISSS
respectively. This report (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDT
ECHNOLOGIES/Resources/VolII_Report_on_standartization_activities.pdf) compares these two prevailing
initiatives/standards in terms of their business documents, processes and messages, in order to identify similarities
and differences. Furthermore, issues concerning the extension of their use in the pre‐awarding phases of the
procurement cycle are identified and discussed.

The existence of UBL and c‐Catalogue, as well as, several other eCatalogue standards, has created a substantial
interoperability gap amongst organizations that make use of eCatalogues in order to conduct business
electronically. OASIS and UN/CEFACT have recognised this issue and are currently taking actions towards the
convergence of UBL and catalogue with an objective to establish one unique standard to accommodate all needs.

In addition to eBusiness initiatives/standards, there is a number of e‐catalogues standards and other
standardization
activities (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resource
s/VolII_Report_on_standartization_activities.pdf#page=22) undertaken in the EU countries in the area of product
description and classification schemes. Such schemes constitute a core component of eCatalogues, offering the
possibility to accurately categorize and describe products and services contained in eCatalogue prospectus using
standardized product hierarchies and sets of attributes. The interoperability of eCatalogues is closely associated
with the interoperability of classification schemes used to describe products within eCatalogues. Strong points of
such schemes are identified and presented in
this report, http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resour
ces/Vol_I_eCatalogues_Report_of_the_State_of_Play.pdf#page=91) including measures to achieve
interoperability.

III. COMMON PROCUREMENT VOCABULARY (CPV)

To make public procurement more transparent and efficient, in 1993 the European Commission drafted
the Common Procurement Vocabulary
(CPV), (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/R
esources/Commom‐procurement‐vocabulary.pdf) which is useful for other countries as well planning to
institute common procurement vocabulary.

The aim of
the CPV (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources
/Commom‐procurement‐vocabulary.pdf) is to standardize, by means of a single classification system for public
procurement, the terms used by contracting authorities and entities to describe the subject of contracts, by
offering an appropriate tool to potential users (contracting entities/authorities, candidates or tenderers in contract
award procedure). The use of standard codes makes it easier to implement the advertising rules and facilitates
access to information.

This CPV was translated into 22 official languages of the European Communities and simplifies the task of drafting
notices, and in particular describing the subject matter of contracts, for contracting authorities and contracting
entities. It also simplifies the drafting of statistics on public procurement in the EU, since the CPV is compatible
with trade monitors used throughout the world (especially those used by the United Nations).

IV. UNSPSC GOODS AND SERVICES PRODUCT CODE
The United Nations Standard Products and Services Code® (UNSPSC®) provides an open, global multi‐sector
standard for efficient, accurate classification of products and services.
The UNSPSC offers a single global classification system that can be used for:
 Company‐wide visibility of spend analysis
 Cost‐effective procurement optimization
 Full exploitation of electronic commerce capabilities

V. E-BUSINESS STANDARTIZATION BODIES
Below is a list of the e‐Business standardization bodies, many of which are committees or affiliates of the leading
bodies of W3C, OAISIS and RosettaNet. IEEE is also a central to the formal establishment of the recommended
standards:

IEEE (Institute of Electrical and Electronics Engineers)

IETF (Internet Engineering Task Force) Internet standards

W3C (World Wide Web Consortium) Web and XML standards

OASIS (Organization for the Advancement of Structured Information Standards)

XML.org

Cover pages

BASDA

Relax NG

UDDI

UBL

XACML

SPML

ebXML messaging

CPP / CPA

Registry / Repository

WS‐I

WSDL (W3C)

SOAP (W3C)

CGM Open

IBM

BPEL4WS

Web Services Security

Web Services Security: Trust Centre

RosettaNet

CEFACT‐OASIS

Specs ebXML

ebXML adoption

CEFACT (United Nations Centre for Trade Facilitation and Electronic Business)

Data Interchange Standards Association

CEN ISSS (Information Society Standardisation System)

EAN International

UCC (Uniform Code Council)

Global Commerce Initiative

EU's e‐Procurement Initiatives

I. OVERVIEW

The European experience in the area of e‐Procurement is of a great interest to the developing countries that have
aspirations to embark on e‐Procurement agenda. Over the last few years, the European Commission has
developed guidelines and tools to help administrators, IT editors and business to adapt their existing procurement
systems to the European directives. Lots of documentation that analyzes the status of e‐Procurement in Europe is
available here. Commission provides news, best practices and exchange opportunities on e‐Procurement and other
e‐Government activities at http://epractice.eu.
One of the most relevant reports is State of the Art Study,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resourc
es/State‐of‐the_Art_report_Vol1_by_European_Dynamics.pdf) which analizes the existing initiatives in
Europe. It presents the status and deduces practices from various systems across Europe. The analysis includes 21
eProcurement systems and it has identified 44 interesting eProcurement
Practices (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resource
s/State‐of‐the_Art_report_Vol1_by_European_Dynamics.pdf#page=21) which fall within four major categories:
1) Organizational practices for assisting administrations in establishing and developing eProcurement programmes;
2) Procedural practices related to the phases of the eProcurement lifecycle for all foreseen procedures;
3) Technical practices for modeling fully compliant with the legislation eProcurement systems from a technical
viewpoint;
4) Operational practices for establishing operations, assisting Contracting Authorities in conducting fair and
transparent competitions.
This Table (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resourc
es/State‐of‐the_Art_report_Vol1_by_European_Dynamics.pdf#page=77) highlights some of the most useful
Procurement Practices, which if implemented can contribute strongly to the functionality and operation of public
procurement systems.
In October 2009, , the eProcurement Forum took an initiative to compose the picture of e‐procurement initiatives
in Europe and make it available for consultation, revision andintegration to as much e‐Procurement practitioners
as possible. The results were documented in the e‐procurement Map of
Europe (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/
The‐eProcurementMap‐3rd‐edition.pdf) report that presents an analysis of the key activities that have an impact
on the development of electronic public procurement in Europe. This report serves as a snapshot of various
projects, initiatives or communities, having different targets, audiences or approaches to eProcurement. It
consists of three main sections: Section 2: Map of the activities, where all the activities have been described
providing synthetic information on objectives, approach and contacts; Section 3: Available studies, proposing a
selection of the available results of these activities and of the reference documents produced by the European
Commission; Section 4: Relevant Legal Acts, proposing the most recent legal acts issued at European level
From the analysis of the Directives and the experience examined in the background studies, the European
Commission has produced Functional requirements reports consisting of Volume I and Volume II. These reports
analyse procedural aspects of the eProcurement procedures described by the European directives and include
functional and non‐functional requirements for implementing them electronically.
Volume I of the Functional Requirements
report (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/f
unctional_requirements_for_conducting_eGP_under_EU_Framework.pdf) presents the information and activity
flows for all eProcurement procedures, functional requirements, non‐functional requirements, an overview of
technical specifications with a conceptual model and high‐level Use Cases, and open issues related to
eProcurement.
Volume II of the Functional
Requirements (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Res
ources/functional_requirements_for_conducting_eGP_under_EU_FrameworkVOLUME2.pdf) report presents an
in‐depth technical analysis (Use Case analysis) for the main actors and functionalities of an eProcurement system
supporting all eProcurement procedures. It also provides scenarios for interested parties to experiment with the
dynamic demonstrators, developed in the context of the current project, so as to further understand the concepts
described in the Functional Requirements report.

II. E-PROCUREMENT PROCEDURES AS PER THE EU PROCUREMENT RULES AND
REGULATIONS

To assist public administrations in building eProcurement systems in compliance with the European directives, the
EU developed a number of documents indented to guide the countries in development of their e‐Procurement
systems. This section is based on two major reports prepared for the European Communities on functional
requirements. We find them useful and educational for any government that is at a different stage of e‐
Procurement development in their own country.

When planning for an e‐procurement system, it is important to realize that it can support different types of
procurement procedures for awarding the public contracts. The procurement procedures are classified in
accordance with the following contract types:

1. INDIVIDUAL CONTRACTS
1.1.Open procedures: whereby any interested Economic Operator may submit a Tender. Click
here (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/fu
nctional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=26) to view Information
FlowDiagram for the Open Procedure. Click
nctional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=26) to view the Activity diagram is
for the open procedure.

1.2.Restricted procedures: Only those Economic Operators invited by the contracting authority may submit a
Tender. Click here
nal_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=28) for Information Flow Diagram for
the Restricted Procedure. Click
nctional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=31) for Activity diagram for the
restricted procedure.

2. REPETATIVE CONSTRACTS
2.1. Dynamic purchasing systems: constitutes a fully electronic process for contracting authorities for making
commonly used purchases, which are generally available on the market and meet the requirements of the
contracting authority. Click
nctional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=33) for Information Flow Diagram
for Dynamic Purchasing System. Click
nctional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=39) for Activity diagram for a
Dynamic Purchasing System.

2.2. Framework agreement: it is an agreement between one or more contracting authorities and one or more
Economic Operators, the purpose of which is to establish the terms governing contracts to be awarded during a
given period, in particular with regard to price and, where appropriate, the quantity envisaged. Click
of the Framework Agreement. Click
nctional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=45) for Activity diagram for the
procurement of an individual contract within a framework agreement.

3. EXTENSIONS
3.1. Electronic auctions: are repetitive processes involving the use of an electronic device for the presentation by
bidders of the improved offers for a specific Call for Tenders (i.e. the submission of new prices revised
downwards, and/or new values concerning certain elements of tenders, thus allowing the use of automatic
evaluation methods). eAuctions can be used with contracts for works, supplies or services for which the
specifications can be determined/quantified with precision. This excludes non‐quantifiable elements of a tender,
as well as, certain service and work contracts having as their subject‐matter intellectual performances. Click
for Electronic Auctions. Click
nctional_requirements_for_conducting_eGP_under_EU_Framework.pdf#page=50) for Activity Diagram for
eAuction.

III. THE E-PROCUREMENT ON-LINE FORUM: SHARING AND LEARNING FROM OTHERS

The eProcurement Forum is an initiative sponsored by the European Commission to help all the practitioners in
public electronic procurement in Europe to meet and share their experiences and knowledge, to ask and to
provide support. It is an open space to express opinions and exchange knowledge where members are
encouraged to provide contributions and participate in the dicussiosn and events. It is not an official Commission
site and its mainly focused on technical and organizational aspects of e‐Procurement.

IV. PEPPOL: A PAN-EUROPEAN PILOT AIMED TO FACILITATE THE EU-WIDE
INTEROPERABLE PUBLIC E-PROCUREMENT

Different European projects implemented under ICT Policy Support Program are listed here. The most relevant
is PEPPOL. The objective of the PEPPOL (Pan‐European Public eProcurement On‐Line) project is to set up a pan‐
European pilot solution that, conjointly with existing national solutions, would facilitate EU‐wide interoperable
public eProcurement.
The vision of the PEPPOL project is that any company and in particular SMEs in the EU can communicate
electronically with any European governmental institution for the entire procurement process. The final outcome
of PEPPOL will be an inter‐operational environment build upon national systems and infrastructures supporting the
full cycle of eProcurement activities.
The PEPPOL project is subdivided into eight work packages including five building blocks (BB) that cover the entire
procurement process from eTendering to ePayment. Each BB will develop guidelines to common specifications
enabling the implementation of interoperable solutions for their particular cross‐border task in public
eProcurement.
 eSignature will develop guidelines and specifications and pilot solutions to overcome the lack of interoperability
between the different national schemes for electronically signing tender documents.
 Virtual Company Dossier will provide interoperable solutions for economic operators in any European country to
utilise company information already registered somewhere in order to submit certificates and attestations
electronically to any procurement agency.
 eCatalogue will define and test solutions to manage eCatalogues to overcome the lack of a standard definition of
eCatalogues used in European public procurement procedures that will be used as part of a bid and as a basis for
issuing orders. The challenges with eCatalogues are listed in this
urces/eProcurement_Session_5_CONSIP‐PEPPOL.pdf#page=14) from the distance learning series 2010 by the WBI.
The European Commission commissioned an extensive Study to analyze rules and current practices for the use of
eCatalogues in both the public and the private sectors, with a view to formulating requirements and
recommendations for their further development in public procurement. This Study consisted of three parts:
 State of
Play: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTE
CHNOLOGIES/Resources/Vol_I_eCatalogues_Report_of_the_State_of_Play.pdf) the
current report, presenting eCatalogue initiatives in the public sector in the EU and in
private companies, highlighting common points, differences, needs and requirements
 Standardization Activities:
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNO
LOGIES/Resources/VolII_Report_on_standartization_activities.pdf) presents current
standardization activities on eCatalogues as well as product description and
classification schemes, and makes recommendations for the adoption of appropriate
standards to increase interoperability
 Functional
Requirements: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATI
ONANDTECHNOLOGIES/Resources/eCatalogue‐Functional‐requirements.pdf) defines
preliminary functional and non‐functional requirements for establishing eProcurement
systems which may use eCatalogues as a tool for tender submission.
 eOrdering will benchmark existing eOrdering processes and implement pilot arrangements on the data and
process level for the exchange of eOrdering documents between all relevant stakeholders highlighting and
communicating good practices.
 The overview of the WP4’s scope, which is electronic ordering in cross‐border public
procurement, and analysis of relevant studies, standards and legislation is
presented here.
LOGIES/Resources/d4‐1‐chapter‐2‐2013‐overview‐about‐the‐peppol‐project‐and‐scope‐
of‐work‐package‐4.pdf)
 eInvoicing will benchmark existing eInvoicing processes for the payment of goods and services and implement
pilot arrangements on the data and process level for the exchange of eInvoicing documents between all relevant
stakeholders.
 This document CEN/Fiscalis e‐Invoicing Good Practice Guidelines represents one single
set of good practice guidelines for both businesses and tax administrations in the
European Union.
LOGIES/Resources/eInvoice‐best‐practices.pdf)

 Solutions architecture, design and validation will focus on design and validation of the common specifications and
building blocks which together will define the technical interoperability layer required to provide an operational e‐
business infrastructure. The coordinator of this WP will take the role as Technical Director of the project.
The results of the PEPPOL project to date are presented here.

V. THE NEW CHALLENGES POSED BY THE TRANSITION TO E-PROCUREMENT

The technology to support e‐Procurement is now in place. National and regional e‐Procurement platforms are
developing and thereby delivering tangible benefits to contracting authorities and suppliers. At European level, the
challenge is two‐fold: first, to ensure that the legal and policy environment keeps pace with this change; secondly,
to avoid the emergence of a new generation of barriers to cross‐border procurement which have their origin in
different e‐Procurement models, information technology systems and applications.
The Commission is exploring ways in which EU procurement policy can respond to these challenges. In the short‐
term, it is preparing initiatives in the area of concessions and is looking closely at the issue of the application of
procurement legislation to cases where local or other purchasing bodies cooperate in procurement. It is also
finalizing an analysis of the take‐up of e‐Procurement in which it will assess the existence of barriers to cross‐
border participation in electronic procurement marketplaces.
In parallel, the Commission is embarking on a comprehensive evaluation of EU procurement legislation. This
evaluation, to be completed in spring 2011, will examine the effectiveness of EU rules in promoting open,
contestable and sound procurement. The findings will be used to inform reflection on the need for a
modernization of EU procurement rules.

Overview of e‐Procurement Efforts in Various Countries

I. REGIONAL OVERVIEW OF E-PROCUREMENT
The following are the links to the regional overview of e‐Procurement:
 AFRICA ‐ Trends in Public Procurement: Opportunities and Challenges for Capacity Building
Interventions, (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Res
ources/eGP‐in‐Africa.pdf) a presentation by Thomas Asare, Abdoulaye Kane, Frannie Leautier, Sithabile Majoni
 ASIA AND PACIFIC REGION: Public Procurement: Opportunities, Challenges and the ADB's Role,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/eGP‐
Asiaand‐Pacific.pdf) a presentation by Mr. Hamid Sharif, Principal Director of Central Operations Services
Office, ADB

II. COUNTRY SPECIFIC OVERVIEW OF E-PROCUREMENT
The following are the links to the overview of e‐Procurement in various countries:
 MEXICO’s e‐
procurement: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Res
ources/Mexico.ppt) Can information systems build trust and improve governance, a presentation made in April
2009 by Eduardo Bohorquez
 MONGOLIA: e‐Procurement,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Mogoli
a.pdf) a presentation by Gantsogt Khurelbaatar, Ministry of Finance
 SINGAPORE: E‐Government Procurement Experience,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Singap
ore.pdf) a presentation made in November 2009 by Puay Long CHIAPrincipal Engineer, DSTAExecutive Consultant,
IDA International
 SOUTH AFRICA: e‐Procurement Overview,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/SouthA
frica.pdf) a presentation made in November 2009 by Henry Malinga, Chief Director of Supply Chain Policy National
Treasury, Government of South Africa.
 USA: e‐Commerce in
USA, (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/us
a.ppt) a presentation made in November 2009 by David A. Drabkin, former Senior Procurement Executive, Office of
the Chief Acquisition Officer U.S. General Services Administration
 CHINA: Development and future plans of Chinese eprocurement,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/china.p
df) a presentation made in November 2009 by Mr. Xue Bing, Government Procurement Division , Treasury
Department, Ministry of Finance, P.R. China
 KENYA: Action Plan for E‐GP implementation in Kenya,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/kenya.
pdf) a presentation made in November 2009 by Jerome Ochieng, Public Procurement Oversight Authority –Kenya
 BRAZIL: Strengthening Government Procurement: e‐Procurement as part of Public Procurement Policy,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/brazil.p
df) a presentation made in November 2009 by Dr. Florencia Ferrer, PhDCEO –FF/e‐Strategia Pública. A detailed
case study of Brazil’s e‐procurement published in I‐Ways Journal of e‐Government Policy (2009) is available here.
 PHILIPPINES: Implementing the Philippine Government Electronic Procurement System
(PhilGEPS), (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resour
ces/philippines.pdf) a presentation made in November 2009 by Rosa Clemente, Director of PhilGEPS/IT,
Government of Philippines
 NORWAY: E‐Procurement in Norway,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/norway
.pdf) a presentation made in November 2009 by Mr. Dag Strömsnes
 KOREA: Innovating Public Procurement Through KONEPS,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/korea.p
df) a presentation made in November 2009 by Seunghyun Kang, Ph.D. Public Procurement Service, Government of
Korea
 ITALY: Consip’s eProcurement System: State of the Art and Future Challenges,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/italy1.p
df) a presentation made in November 2009 by Danilo Broggi CEO Italian Public Procurement Agency ‐Consip S.p.A
 ITALY: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/I
taly_eproc_2010.ppt) another useful presentation on “Public e‐Procurement in Italy: Consip’s role and e‐
Procurement System” was made by Luca Mastrogregori, Head of e‐Procurement Strategies, Consip S.P.a. in 2010.
 CHILE: a Description of
ChileCompra, (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Reso
urces/chile.pdf) a presentation made in November 2009 by Felipe Goya, Director
 INDIA: Technology Solutions for E‐Procurement,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/india.p
pt) a presentation by VIDYADHAR MUTHYALA, Project Manager, IT&C Department, Government of Andhra
Pradesh, India, Spring 2010
 BANGLADESH: Introducing e‐Government Procurement (e‐
GP), (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Res
ources/bangladesh.ppt) a presentation by Mr. Abdus Sobhan Sikder, Secretary, IMED, MOP made in December
2008 for the World Bank knowledge sharing event
 Adoption of e‐Procurement in
Sweden: (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resource
s/sweden.pdf) This paper presents an assessment of implementation of e‐Procurement concept within Swedish
government authorities during 2001 and 2008. This work was undertaken by a research team from Luleå University
of Technology.
 IRELAND: e‐Tenders
implementation, (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/R
esources/ireland.pdf) a presentation made in November 2009 by Tom O'Brien, Head of eProcurement, National
Public Procurement Operations Unit, Office of Public Works.
 Costa Rica: An Overview of Mer‐
Link, (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/co
starica.ppt) a presentation made by Ms. Alicia Avandano Riviera at April 12, 2011 e‐Procurement event at the
World Bank, Washington, D.C.
 Korea: Public e‐Procurement in Korea,
(http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/korea2.
ppt) a detailed presentation made by Mr. Woosun Han of Samsung SDS, at April 12, 2011 e‐Procurement event at
the World Bank, Washington, D.C.

III. ADAPTING KONEPS SYSTEM TO OTHER COUNTRIES
South Korea has been ranked first in the United Nations Global E‐Government Survey 2010. KONEPS has attracted
worldwide attention for its transparency and efficiency and is one of the representative e‐government systems in
Korea that ranks high in terms of quality and functionality. The S. Korean Public Procurement Service has been
working to share its benefits with foreign governments and now KONEPS has been adapted in the first two
countries ‐ Costa Rica and Vietnam.
Vietnam: A pilot e‐procurement system for the government of Vietnam has been built on the basis of the
integrated Korea Online E‐procurement System (KONEPS). The pilot system, which was designed to fit Vietnam’s
conditions, cost nearly $3.4 million, of which $3 million was granted by the Korean International Cooperation
Agency (KOICA). E‐Bidding has been implemented on a trial basis at the Hanoi City People’s Committee, the
Vietnam Post and Telecommunication Group, and the Electricity of Vietnam via the
portal http://muasamcong.mpi.gov.vn/ More details arehere.
Costa Rica: The e‐procurement system of Costa Rica known as Mer‐Link was launched in July of 2009. The e‐
procurement system of Costa Rica is based on the KONEPS and has been developed for bidding, contracts, orders
and payment functions reflecting Costa Rica's actions and deals. The cost of e‐procurement system is estimated at
US$ 16.0 million. More details are here. Meanwhile, South Korea is also working with other governments and
providing funding for initial feasibility studies, capacity building and piloting of the e‐procurement systems.

Lessons Learned

Several lessons emerged from the research of e‐procurement
implementation (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/R
esources/International_eGP_Survey.pdf) by the MDB in 2007. From the foregoing analysis undertaken by MDB’s
working group, several lessons emerged that could be useful to the countries yet to develop and implement e‐
Procurement systems. The key lessons learnt by most countries can be summarized as follows:
 Effective government leadership and management of the implementation plan;
 Comprehensive user buyer and manager awareness and training so they are confident to use the systems and their
initial concerns have been addressed;
 Supplier awareness and training must be addressed;
 The potential e‐Procurement environment is assessed and the information used in developing the implementation
plan;
 The transition from paper to electronic based processes is planned and supports the need to change the process;
 Legislative support – especially identified by South American countries.

Below are more lessons pronounced by the respondent from 14 sample countries subdivided into 12 major areas
and include direct quotes of the surveyed:

1. Provide effective supplier awareness and training
 Suppliers initially have little confidence in the systems.
 Suppliers do not realize the potential of the system to streamline the process, provide better access to
opportunities and marketing information.
 Suppliers ‘fear of losing contracts because the bidding process is now more transparent. and more competitive
resulting in less projects being available.
 Suppliers are not computer literate.
 Create a sustainable training program for users.

2. Provide effective manager and buyer awareness and training
 Most procurement officials targeted for training are not computer literate.
 Intensive capacity building for users is required.
 Managers need training on managing all aspects of procurement.
 Procurement officers resisted the change for fear of losing full control of their bidding process.
 Resistance among personnel within the implementing agencies to job loss due to process reengineering. Proper
information dissemination required for those affected in the reengineering to assure them of security of tenure.
 Provide practical training to potential users and linked institutions’ members.
 Slow absorptive capacity among users.

3. Need for Government leadership
 There must be government wide collaboration
 Establish a special committee composed of concerned government ministries under the strong presidential
leadership. This committee should be supported by advisory and system implementation groups.
 Establish a single portal for government procurement so that there is no confusion over process policy and
management.
 Lack of support from heads of procuring entities resulting in subordinates not using the system.
 Most heads of procuring entities fear losing control of their agency's procurement activities because of lack of
information (from central procurement agencies)
 The lack of effective information campaign creates an atmosphere of uncertainty among stakeholders.
 Most government departments want their own procurement system and may resist attempts to harmonize the
process.

4. Assess the procurement environment before planning
 Understand the:
 ‘levels of e‐Readiness of society and specific business sectors
 computer literacy of potential users
 current coverage and capacity of the country’s network infrastructure
 the extent of the digital divide
 requirements of international trade agreements
 current capacity to implement e‐Procurement

5. Retention of the paper process (range of views)
 Paper process needs to be retained initially but then phased out in a publicly announced timetable.
 If the paper process is removed, the suppliers will be more encouraged to adopt the system earlier. Once the
critical mass is reached, whether the paper channel is remained or not would not affect the adoption rate.
 Retaining the paper process limits the take up rate and supplier confidence in the system.

6. Mandate usage of the system
 Mandate or legislate to make use of the system compulsory for government funded agencies and institutions.

7. Re‐engineer the procurement process
 Re‐engineer the procurement process to be supported by e‐Procurement systems before the system is designed.

8. Develop a procurement data base early
 Provides market and product information to buyers and suppliers
 Provide a potential inducement for suppliers to participate.

9. Factor legal, security and audit issues into implementation costs as part of the plan

10. Develop one national platform for e‐Procurement

11. Remove obstructions to foreign suppliers requiring digital certificates

12. Have an effective change management strategy
Nearly all the lessons relate to management of e‐Government Procurement rather than the technical issues
related to the systems. This supports the observation made elsewhere that the problems for e‐Procurement arise
from the business process reengineering rather than the technology.

Training Resources Available through the World Bank
Group

I. OVERVIEW OF TRAINING FOCUS AREAS

It is important that the government officials involved in acquiring, implementing and overseeing e‐Procurement
systems as well as representatives from the Ministries of Finance with expenditure control responsibilities are
exposed to training opportunities in the area of e‐Procurement. Besides technical issues, the training should cover
the subjects of:
‐ Development of the optimal e‐Strategy and Action plan for e‐Procurement implementation;
 ‐ Tender for and contract manage the purchase of the e‐Procurement system successfully;
 ‐ Steps to take in order to implement and operate the e‐Procurement system
 Ensuring sustainability and success of the e‐Procurement implementation.

II. THE WORLD BANK INSTITUTE: DISTANCE LEARNING TRAINING RESOURCES
The World Bank Institute (WBI) is the Bank Group’s principal provider of learning activities. It has delivered training
courses and seminars since the 1950s, mostly for government officials in developing countries on such topics as
macroeconomic policy, poverty reduction, health, education, and policy reform in other economic sectors.
In 2009, 2010 and 2011, the WBI has organized a series of distance learning training sessions on various subjects of
e‐Procurement. The training was carried out via videoconference supported by the online platform that hosts
training materials. Each session focused on a particular thematic area. The structure of each session encouraged
dialogue between participants while relaying to them the relevant information necessary to effectively design and
administer an e‐Procurement system.
In 2009, the training was attended by Albania, Jordan, Moldova, Kenya and Tanzania. In 2010 the training was
attended by Armenia Ghana, Georgia and Rwanda. In 2011, the training was attended by another five East Asia
Region countries (Malaysia, Philippines, Thailand, Vietnam and Indonesia). At the end of the training, the country
teams were asked to develop Strategic Action Plans. For a copy of the plans developed by the country teams, click
on a country name: Malaysia, Philippines, Thailand, Vietnam and Indonesia.

Click here to access the training site. Click here to access the presentation made by Robert Hunja in April 2010
providing an overview of WBI's work in this area.

III. THE E-DEVELOPMENT THEMATIC GROUP: DISTANCE LEARNING TRAINING
RESOURCES
The e‐Development Thematic Group is a global community of practice open for participation by World Bank staff
and external clients and partners. It brings together ICT specialists and other development professionals for mutual
learning, knowledge sharing, capacity building and operational collaboration. The group organizes on‐going online
and face to‐face workshops and seminars covering the ICT topics that are of the most interest to the developing
countries. One of these topics is e‐Procurement.
In December 2008, the e‐Development Group has organized a workshop on “Demystifying Electronic Government
Procurement.”
The workshop aimed to catalyze e‐Procurement implementations in participating countries, demystify the process,
identify "quick wins" and expose key myths and misconceptions. Using case studies, the speakers discussed best
practice examples and key lessons from e‐Procurement initiatives, as well as general recommendations for
designing and implementing successful e‐Procurement projects. More information is available here.

IV. ICT TOOLKIT DEVELOPED BY THE WORLD BANK
In many cases the planning for and implementation of e‐Procurement initiatives can be treated as any other ICT
intervention. This ICT toolkitdeveloped by the World Bank a few years ago attempts to be a simple practical
treatment, focusing on the World Bank operations. It brings together in one place the experience contained within
the World Bank, providing tips, checklists and reference material. The content of this ICT toolkit attempts to
summarize, at an arbitrary level of detail, pertinent and explicit knowledge. There is no intention that the content
could be used by an inexperienced person to execute an ICT component without expert assistance.
It is intended to be a practical guide addressing a limited part of the problem i.e., the role of task manager in
preparing for and supervising the implementation of ICT that is integrated into some development objective. The
toolkit is made up of two parts:
 Part 1 is an Overview or Route Map. It covers awareness of the use of ICT, how to categorize an ICT component
and “walks through” a component lifecycle giving brief comments and tips and pointing to more detailed guidance
in part 2 and elsewhere. In both parts 1 and 2 there is reference to the use of appropriate expertise for further
guidance.
 Part 2 Good Practice. It goes into a greater level of detail, providing a summary of the various disciplines relevant
to the conceptualization, planning, delivery and sustainability of ICT‐based products.

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I. THE IMPORTANCE OF LEADERSHIP

I. OVERVIEW OF TRAINING FOCUS AREAS

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