Electronic Government Procurement, (abbreviated e-GP, in Spanish Electronic Public Acquisitions) refers to the use of information and communication technologies (ICT) tools by public entities, in order to acquire goods, services, or contract works. It is also defined as the set or “framework” of information and management technological solutions that support the contracting cycle between government and suppliers.
Background
The public sector has great importance in national and international markets and economies. The diversity of inputs that the State requires to fulfill its functions makes it necessary for public entities to resort to the market to supply goods, services or to commission the execution of infrastructure works.
The public administration has developed a set of procedures, standards and institutions aimed at ensuring that state procurement is carried out efficiently and minimizing the possibilities of corruption. This set is variously called “Public Sector Contracting”, “Public Contracting” or “Government Acquisitions”.
Public procurement is the activity that includes the preparation, award, effect, compliance and termination of those onerous contracts in which at least one of the parties is a public legal entity. As an effect of this activity, and the exorbitant rights that derive from the regulations that regulate it, access to the public procurement market is usually limited by lack of dissemination, credit, capital or knowledge of the respective regulations.
The opportunities for widespread distribution of information provided by ICT, especially the Internet, have made possible the creation of Internet-based public procurement systems.
Characteristics
The introduction of technology in public procurement has proven to be an effective way to fight corruption and increase the development impact of government actions. The main potential benefits of e-GP systems or platforms are transparency and regulatory compliance. The removal of all physical and temporal barriers, promoted by the online tool, allows information to be available automatically and the government to have a broader reach of potential suppliers. The likelihood of a greater number of bidders participating tends to result in more competitive bidding prices, which increases profitability for the government and society as a whole. The development of an electronic public procurement system has been one of the key components of public sector reforms in the last decade.
Electronic Purchasing (E-Procurement)
Introduction
Electronic Government Procurement, (abbreviated e-GP, in Spanish Electronic Public Acquisitions) refers to the use of information and communication technologies (ICT) tools by public entities, in order to acquire goods, services, or contract works. It is also defined as the set or “framework” of information and management technological solutions that support the contracting cycle between government and suppliers.
Background
The public sector has great importance in national and international markets and economies. The diversity of inputs that the State requires to fulfill its functions makes it necessary for public entities to resort to the market to supply goods, services or to commission the execution of infrastructure works.
The public administration has developed a set of procedures, standards and institutions aimed at ensuring that state procurement is carried out efficiently and minimizing the possibilities of corruption. This set is variously called “Public Sector Contracting”, “Public Contracting” or “Government Acquisitions”.
Public procurement is the activity that includes the preparation, award, effect, compliance and termination of those onerous contracts in which at least one of the parties is a public legal entity. As an effect of this activity, and the exorbitant rights that derive from the regulations that regulate it, access to the public procurement market is usually limited by lack of dissemination, credit, capital or knowledge of the respective regulations.
The opportunities for widespread distribution of information provided by ICT, especially the Internet, have made possible the creation of Internet-based public procurement systems.
Characteristics
The introduction of technology in public procurement has proven to be an effective way to fight corruption and increase the development impact of government actions. The main potential benefits of e-GP systems or platforms are transparency and regulatory compliance. The removal of all physical and temporal barriers, promoted by the online tool, allows information to be available automatically and the government to have a broader reach of potential suppliers. The likelihood of a greater number of bidders participating tends to result in more competitive bidding prices, which increases profitability for the government and society as a whole. The development of an electronic public procurement system has been one of the key components of public sector reforms in the last decade.
In conclusion, the implementation and use of an effective e-GP system or platform is closely related to the existence of good purchasing policies by promoting:.
All of this is achieved through access to transparent information on public spending of taxpayers' money. These principles create an atmosphere of trust between the public and private sectors, fostering a greater level of partnership between them.
The importance of e-GP is explained by the fact that governments are the largest buyers in countries (around 10-15% of GDP in developed countries and 20% in emerging countries).[1] The impacts that e-GP achieves in the country's savings, transparency and support for small and medium-sized businesses are at the center of the demands of different actors in society. It is estimated that e-GP saves on average 5% in the price of purchased goods and services and 10% in administrative process costs.[2].
However, to obtain these benefits and solve public procurement problems, governments face important dilemmas: normally, decisions to improve efficiency and produce savings are in contradiction with decisions to increase controls and improve transparency, since increased controls traditionally imply a greater number of steps or requirements. This contradiction is resolved with the increase in inter-institutional communication interconnections, cross controls and the use of shared databases, actions that are greatly facilitated with the use of ICT.[3].
The introduction of information technologies to public procurement makes it possible to simultaneously make multiple objectives compatible and serve different actors. This is how it has been seen during the last decade that practically all governments are seeking the introduction of electronic systems to support their public purchases.
Benefits
The benefits of e-GP have been widely demonstrated[4][5] and therefore, e-GP is a permanent component of public administration reforms.[6] Its main benefits are:.
Development
Development usually follows a process that begins with publishing the hiring steps on a website, and gradually increases the level of interactivity and coverage. As e-GP systems reach higher levels of development, the number and relevance of functions performed on the Internet portal tend to be greater.
During the decade between 2000 and 2010, governments in several countries have identified government procurement as one of the critical areas where new technologies should be introduced to improve the efficiency and increase transparency of state procurement processes. The introduction of these new technologies in the procurement process for goods, services and public works (e-GP) offers many potential benefits. However, given the complexity of this transformation, there are great differences between the experiences of the countries in the region, especially in terms of obtaining concrete results.
Items
e-GP systems vary in functions, elements and degree of advancement. However, certain common elements can be identified:
Classes
In general, two classes of systems are distinguished:[8].
e-GP Community of Practice
During the “Third Global Conference on e-GP”, which was held in Washington D.C. in November 2009, the multilateral development banks (MDBs) decided to create an e-GP Community of Practice. This Community is a virtual space to consolidate information and tools such as: policies, guides, best practices, training modules, e-GP solutions, software and others, as well as to facilitate dialogue between countries. practices and knowledge, promote south-south cooperation and promote contacts and capacity building in the management of new technologies and systems in the country.
Its website publishes news, academic articles, case studies, definitions and other tools that support the management of those responsible for the Community's member procurement systems.
Some multilateral development banks are:
A more complete list can be seen on the Development Bank's website.
In conclusion, the implementation and use of an effective e-GP system or platform is closely related to the existence of good purchasing policies by promoting:.
All of this is achieved through access to transparent information on public spending of taxpayers' money. These principles create an atmosphere of trust between the public and private sectors, fostering a greater level of partnership between them.
The importance of e-GP is explained by the fact that governments are the largest buyers in countries (around 10-15% of GDP in developed countries and 20% in emerging countries).[1] The impacts that e-GP achieves in the country's savings, transparency and support for small and medium-sized businesses are at the center of the demands of different actors in society. It is estimated that e-GP saves on average 5% in the price of purchased goods and services and 10% in administrative process costs.[2].
However, to obtain these benefits and solve public procurement problems, governments face important dilemmas: normally, decisions to improve efficiency and produce savings are in contradiction with decisions to increase controls and improve transparency, since increased controls traditionally imply a greater number of steps or requirements. This contradiction is resolved with the increase in inter-institutional communication interconnections, cross controls and the use of shared databases, actions that are greatly facilitated with the use of ICT.[3].
The introduction of information technologies to public procurement makes it possible to simultaneously make multiple objectives compatible and serve different actors. This is how it has been seen during the last decade that practically all governments are seeking the introduction of electronic systems to support their public purchases.
Benefits
The benefits of e-GP have been widely demonstrated[4][5] and therefore, e-GP is a permanent component of public administration reforms.[6] Its main benefits are:.
Development
Development usually follows a process that begins with publishing the hiring steps on a website, and gradually increases the level of interactivity and coverage. As e-GP systems reach higher levels of development, the number and relevance of functions performed on the Internet portal tend to be greater.
During the decade between 2000 and 2010, governments in several countries have identified government procurement as one of the critical areas where new technologies should be introduced to improve the efficiency and increase transparency of state procurement processes. The introduction of these new technologies in the procurement process for goods, services and public works (e-GP) offers many potential benefits. However, given the complexity of this transformation, there are great differences between the experiences of the countries in the region, especially in terms of obtaining concrete results.
Items
e-GP systems vary in functions, elements and degree of advancement. However, certain common elements can be identified:
Classes
In general, two classes of systems are distinguished:[8].
e-GP Community of Practice
During the “Third Global Conference on e-GP”, which was held in Washington D.C. in November 2009, the multilateral development banks (MDBs) decided to create an e-GP Community of Practice. This Community is a virtual space to consolidate information and tools such as: policies, guides, best practices, training modules, e-GP solutions, software and others, as well as to facilitate dialogue between countries. practices and knowledge, promote south-south cooperation and promote contacts and capacity building in the management of new technologies and systems in the country.
Its website publishes news, academic articles, case studies, definitions and other tools that support the management of those responsible for the Community's member procurement systems.
Some multilateral development banks are:
A more complete list can be seen on the Development Bank's website.