PhilGEPS : A Government Managed Service

e-GP Regional Conference Bali, Indonesia Nov 22-24,2011
Asia and Pacific E-GP Conference November 22-24,2011 Denpasar, Indonesia

• Overview of PhilGEPS
I. System Overview

• Approach Followed for Implementation II. Procurement in the Philippines • Key Factors, Challenges and Lessoned Learnt

System Overview
• The PhilGEPS (Philippine Government Electronic Procurement System) is the single, centralized electronic portal that shall serve as the primary and definitive source of information on government procurement.
• Main objectives: • Increase Transparency • Level the Playing Field for Bidders • Provide an Open, National and Competitive Procurement Environment

System Overview
PhilGEPS supports the following functions :
Advertisement of notices, distribution of documents and posting of awards; Buyer and Supplier Registry;

In 2012, PhilGEPS plans to introduce:
e-bid submission and management of bid opening, evaluation, post qualification and award Expanded supplier registry with products and services listings; e-payment for user fees, bid forms, bid securities Integrated security for encryption, decryption and distribution of bids

Virtual Store supporting common use and non-stocked items Site Administration and Reporting functions

PhilGEPS Activity

2006 • Agencies 3,200 • Suppliers 12,000 • Notices 18,000 • Value $68M USD • Agencies 11,500 • Suppliers 54,000 • Notices 153,000 • Value $36B USD

• • • • Agencies 1,713 Suppliers 854 Notices 2,064 Value $ 784KUSD

Government Managed Service
Funding System Delivery Funded by the Government. Plan to implement user fees for system cost recovery. Service contract with 3rd party service provider for provision of system, infrastructure, disaster recovery plan with backup site, development and support services for fixed monthly service fee. P50M a year (1 Million USD) for all system delivery services and functions (approx. $18/user/per year) Government operates and funds the PhilGEPS support office. Pilot system – implementation 6 months; 5 year operation - $200,000 funded by CIDA Current PhilGEPS system development – 18 months implementation. The Government PhilGEPS office has 25 personnel. Service Provider has 30 personnel

Cost to Government

Time/Cost to implement

Resources supporting operations

Why This Approach?
– Limited in-house technical capacity to develop, support and expand the system – Ensure government control and ownership of the PhilGEPS business operation while limiting the risk of the technical delivery of the system. – Cost certainty over the period of the contract. – Manage Risk associated with the operation and growth of the system. – Government wanted to provide a free service offering to encourage participation by agencies and suppliers.

Rights and Roles
PhilGEPS (Government)
• Owns the PhilGEPS brand, URL, business operation, users, all data and the system design, workflows and other intellectual property provided by the government and/or its consultants. Option to acquire rights to system at end of contract.

Service Provider
• Owns all system components, software licenses, system Source Code and all the equipment, facilities and network infrastructure supporting the system. Turn over all data and required system rights to government at end of contract.

Responsible for : — Managing the contract with the Service Provider on the basis of the SLA — Marketing development of PhilGEPS and managing the business services operations. — Providing help desk to client agencies and suppliers/contractors/consultants — Implementing users fees — Reporting to the GPPB

Responsible for : – Implementing the PhilGEPS and providing technical advisory, planning, development and implementation service to roll out required new functionalities in manageable stages – Providing all technical infrastructure required for the effective operation and technical support of the PhilGEPS. – Scaling service operation and infrastructure to meet SLA regardless of growth

Advantages of Approach

• •

Implementation Risk: No payment made by the Government until the system was accepted and implemented into production. Service Provider absorbs the cost for any delays or cost overruns.
Financial Management : No upfront cost on the part of the Government for the hardware/software licenses. Technology Management: Government specify the required output. Service Provider handles all software development management. Service Provider responsible to ensure technical platforms meets functions requirements and set SLA. Operation Risk Management: Service provider procures infrastructure, hardware or software, information management functions including backup and recovery procedures and disaster recovery plan. Human Resources Management: Government does not need to attract, recruit, train and retain IT staff (developer,system and database administrators) This responsibility is with service provider.

Service Delivery Management: Single point of contact for service delivery. Government provide better services to clients and any SLA failures result in penalties to service provider. Government could focus on the development of the business services and policies supporting the procurement reform strategy.

Government Government Leadership Leadership

Policy and Policy and Legal Legal Framework Framework

Institutional Institutional Change Change

Awareness Awareness and Capacity and Capacity Building Building

Technology Technology

Lessons Learned

• •

• • •

The Business Model to be selected shall depend on the financial, operational, technological capacity of the country and their local environment. The Government is ultimately responsible for the e-procurement system delivered and the users participating in the system. Transition planning is required as part of the contract termination as e-procurement is a long-term life cycle not just a 3 – 5 year service contract. Need to ensure business continuity from one service provider to another. The Market Brand, Data, Users, Design and URL is more valuable than the source code and should be owned by the government. The delivery and support of the e-procurement system is an ongoing learning process. System planning and development is a never ending process as policies, technology options and user needs continue to evolve.

Thank You
Rosa Maria M. Clemente PhilGEPS, Director III