Electronic Procurement the Experience of the Brazilian Federal Government

1. Electronic Procurement the Experience of the Brazilian Federal Government Marcos Ozorio de Almeida Secretariat for Logistics and Information Technology Ministry of Planning, Budget and Management

2. Federal GovernmentGuidelines • Less red tape • Efficient processes • Standard procedures • Support information tools for the public manager • Managerial controls on expenditures • Increased Competition on tenders • Cost Reduction • Transparency

3. General Explanation on the General Services System – SISG, the SIASG IT support system and SIASG/COMPRASNET environment Inverse Auction and Virtual Inverse Auction Brazilian cooperation initiatives on government procurement Topics Presentation

4. SISG and SIASG IT system and COMPRASNET • Modules • Characteristics • ITC & interactivity incorporation on the Internet • Managerial tools facilities • Transparency, accountability and social control characteristics • Some statistics on procurement of goods and services • Facilities offered

5. General Services System- SISG Other Branches SISG States and Municipalities

6. Information System COMUNICA SIDEC SICAF SISPP SICON SIASG CATMAT SISME COMPRASNET Federal Government Procurement Portal

7. Unified System for Pre-registration of Suppliers - SICAF • Certifies fiscal compliance through on-line consultation (on-line checking of SRF, FGTS, PGFN, INSS registers) • Provides fast and unbureaucratic pre-registration of Federal Government suppliers • Allows pre-registration through internet “SICAFWeb” • 170 thousand registered suppliers • 2,000 new registrations a month

8. Year 1997 1998 1999 2000 2001 2002 Number of Suppliers 61.113 84.701 106.563 130.384 150.600 170.113 Number of Suppliers Registered

9. Type of Supplier Professional Micro Enterprises Small Enterprises Others Total Reg. until 1997 7.106 12.892 20.058 21.057 61.113 Reg. until 1998 10.367 19.195 26.895 28.244 84.701 Reg. until 1999 14.124 25.816 31.589 35.034 106.563 Reg. until 2000 17.811 32.712 36.407 43.454 130.384 Reg. until 2001 21.353 39.715 40.115 49.417 150.600 Reg. until 2002 24.956 45.869 44.211 55.077 170.113 Types of Suppliers Registered

10. Electronic Posting of Purchases and Contracts - SIDEC • Electronic forwarding of documents for publication in the Federal Government’s Official Journal • Automatic posting of invitations to bid and tender results on the Internet • Allows searching and download of invitations to bid

11. Year 1997 1998 1999 2000 2001 2002 Of. Journal 660 1.958 7.779 11.307 12.457 13.379 Comprasnet 1.400 4.068 17.994 26.055 29.092 25.331 Tenders Announced by SIDEC

12. Integrated Price Posting System - SISPP • Registers and stores in a data base the prices practiced by the Federal Administration in previous contracts • Provides public managers with a price reference, for assessment of procurement convenience

13. Contract Management System– SICON • Allows registration and financial monitoring of contracts undertaken within the Federal Administration

14. Generation of Draft Awards System - SISME • Automatic issuance of Award drafts, linked to financial execution of the National Treasury - SIAFI • Ensures that all Federal Administration contracting and purchases go through the System

15. Supplies and Services Catalog - CATMAT • Defines specifications and quality standards for supplies and services purchased by the Government, adopting the Federal Supply Classification criteria. • 45 thousand supply items already catalogued, organized into 13 thousand supply lines and 2 thousand service lines

16. Management Information • Data warehouse – Aggregated data on government purchases for monitoring of indicators. • Comprasnet Bulletin – monthly statistical information on current expenditures

17. Federal Government Procurement Portal CORPORATE SYSTEMS SIAFI SIASG SUPPLIERS MANAGEMENT UNITS COMPRASNET SOCIETY STN SRF PGFN INSS FGTS NAT. PRESS www.comprasnet.gov.br

19. Some data on SIASG/ Comprasnet in 2001 • Accesses on the Portal: 2,400,000 (average monthly – 300,000) • Tenders posted: 29,092 (in 2001) • Suppliers registered: 170,000 (December 2002) • Subscribers: > 40,000 suppliers (September 2002) • Tenders published: 160 a day (average of 2002) • Total tenders published in 2001: 41,549

20. Information and Services available at COMPRASNET • Public access through the Internet • Linked to www.e.gov.br (Government Network) • Electronic inverse bidding • Live inverse bidding • Electronic Price Quoting • Price of purchase registration • Publications and legislation • Complete bidding documents • Tender announcements

21. Information and services available at COMPRASNET • Tender results • Contract statements • SICAF Payment Form • E-mail by interest profile/Preference Lists • Specialized forum • Payment gateway

22. Examples of Transparency and Social Control • Electronic Price Quoting (e-shopping) • Tender Announcements • Inverse Auctions Agenda • Inverse Auctions Underway • Inverse Auctions Results: Aid Memoirs

23. Electronic Price Quoting

24. General View

25. General View

26. Tender Posting

27. General View

28. General View

29. General View

30. General View

31. Inverse Auction Agenda

32. Legal Framework • Law nº 8.666, 1993 • Provisional Measure n.º 2.026, de 4/5/2000 • Decree nº 3.555, de 8 of August of 2000 • Decree nº 3.693, de 2 of December of 2000 • Decree nº 3.697, de 21 of December of 2000 • Decree nº 3.784, de 6 of April of 2001 • Law nº 10.520, de 17 of July of 2002

33. Inverse AuctionandVirtual Inverse Auction • Background information on the adoption of the new mode of procurement • Operational procedures • Impacts of the use of the reverse auction

34. Advantages of the Inverse Auction • Increased competition • Ease of use • Transparency and Social Control Guarantied • Increased participation opportunities • Use of new technologies

35. Inverse Auction • New tendering modality, introduced in August 2000 • Allows direct confrontation between suppliers • Successive bids are made until a winner is announced • There are two forms: • Live inverse bidding • Electronic inverse bidding

36. COMMON SERVICES • Cleaning, security and maintenance • Renting and maintenance of equipment • Meal voucher • Telephony • Transport • Health insurance • COMMON GOODS • Office supplies • Furniture • General appliances • Equipment • Fuels and lubricants • Microcomputers Inverse Auction Use • Procurement of “common goods and services” • Performance and quality standards objectively defined in invitation for bid EXAMPLES

37. Electronic Inverse Auction STAGES • I - Announcement • II - Qualification • III - Registration of proposals • IV - Presentation of bids • V - Award

38. II - QUALIFICATION • Interested suppliers are previously qualified by the administrator of the electronic inverse auction system • They receive access codes that allow participation in any reverse auction

39. Supplier’s View

40. General View

41. General View

42. III - REGISTRATION OF PROPOSALS • Bidders make their price proposals through the Internet, on the day and time defined on the Invitation to Bid • the inverse auction begins with the opening of the proposals

43. Supplier’s View

44. Inverse Auctions Underway

45. IV - PRESENTATION OF BIDS • Bidders can make their bids on the Internet • the system only accepts prices that are lower than the lowest initial proposal or the previous bid • the bidding stage may be concluded in two ways: 1. Randomly 2. Upon the reverse auctioneer's decision

47. Supplier’s View

48. General View

49. General View

50. General View