ARMEPS: Developing and implementing Armenian Electronic Procurement

System

Mr Karen Brutyan, PhD in PFM and PP EBRD Consultant, Wolf Theiss

1-2 December 2011Kiev

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What is EGP ?

• EGP is a user-friendly, Internet-based purchase system that offers electronic purchase order processing and enhanced administrative functions to buyers and suppliers, resulting in operational efficiencies and potential cost savings; and

• Internally, it connects every procurement process from purchase requisition to goods received. Externally, it connects organization with suppliers via marketplace

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Why EGP ?

Introduction of EGP system assumes maximum possible automation of procurement process, which contains a real potential to promote efficiency of public expenditures management. Governance:

Transparency and accountability, strong audit trails, good management information, business and civil oversight, fair dealing

Effectiveness and Efficiency: Government workflow efficiency, business workflow efficiency, value-for-money, contract packaging

Economic Development: IT diffusion, business connectivity, competition, efficient markets

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ARMENIA: Reforms Strategy

• In 2009 the RA Government approved:• Procurements reform strategy, and• It’s action plan

• As the part of the Procurements reform strategy, the RA Government approved EGP introduction plan. For downloading go to: www.procurement.am

• The E-Tendering system: ARMEPS has been developed and tested in 2010. For details go to: www.armeps.am

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The ARMEPS

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The ARMEPS Platform

e-Attestation: Supplier profile and documentation management Live connection with D&B – Dun & Bradstreet database Sophisticated strategic information database Supplier selection and pre-qualification information

assessment

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The ARMEPS Platform

Example: Profile managementThe suppliers create and publish their profile for promoting the services of their organisation

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The ARMEPS Platform

e-Notification: Preparation of Call for Tenders (CfT) workspaces Publication of contract notices to the Official Journal of

the EU (OJEU) Publication of contract notices to National publication

boards

E-Notification Module

Example: CfT workspaceA Contracting Authority maintains CfT workspaces for the publication of notices and the uploading of tenders.

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E-Notification Module

Example: Notice publicationWithin a CfT workspace, a notice can be published (online, OJEU) and become accessible to suppliers.

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The ARMEPS Platform

e-Tendering: Standard procurement procedures during tender

submission Questions and answers exchanged between Contracting

Authorities (Buyers) and Economic Operators (Suppliers)

E-Tendering Module

Example: Submit tenderAn Economic Operator creates a tender online, based on the required tender structure.

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The ARMEPS Platform

e-Awarding: Robust opening of tenders and decryption processes

through four-eye principle Semi-automated tender evaluation supporting various

evaluation strategies Flexible awarding of contracts and preparation of

awarding notices

E-Awarding ModuleExample: Tender evaluationThe Contracting Authority conducts the evaluation of the technical and the financial envelope.

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E-Awarding Module

Evaluation ReportThe evaluation results are published.

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The ARMEPS Platform

e-Auctions: Improvement of tenders submitted via electronic auction

events

E-Auctions Module

Example: e-Auction processAs soon as all suppliers have joined the e-Auction room, the e-Auction starts at the scheduled time.

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Security services supported (1/2)

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Ensures that all tenders or official reports submitted are time-stamped, to prevent misuse of the submission deadline

Ensures transparency of the tendering process by logging all user interactions with the system and providing Audit Trailing/Logging functionalities

Equal treatment and non-discrimination principles applied and support for multiple languages in the Graphical User Interfaces

Provides Data Integrity, resistance to alteration and detection of modifications in information exchanged (support for document / signature verification)

Ensures confidentiality by providing encryption mechanisms and supporting electronic signatures (use of electronic signatures can be disabled)

Secure network connections over https Electronic Identity Card (eID) and digital signatures

Security services supported (2/2)

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Protection of privacy by providing access to users, based on Roles and Permissions (Data accessible/modified only by authorized users)

Rich security filters implemented in each page to prevent copy and paste of access URLs: “what you see is what you need”

Detection of potential virus infection on tenders and notifications of virus infection to the contracting officer in charge of an ITT

Ensures that tenders are inaccessible prior to the opening process (encryption/decryption mechanisms)

Allows the opening of tenders using the 4-eyes principle Allows to verify if the supplier certificates can be trusted Allows the electronic signing of the tender documents

by the suppliers Allows to verify the identity of the supplier who submitted

the tender Provides a reliable proof of a document’s existence at a

stated point in time

Advantages of the ARMEPS

o Tender documents are easily accessed and downloaded from the www.armeps.am site.

o The online submission process is simple to use, the upload is quick and a confirmation of receipt will be issued.

o Fully compliant with EU legislation on public procurement and configurable for adhering to national / local laws

o Support of all e-Sourcing activities, usability, friendliness

o Continuous enhancement of the provided functionality

o Flexibility of customisation to fit the particular business needs of the customer

o Immediate integrationo Adaptation of the graphical interface to

accommodate customer requirements20

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I M P O R T A N T !

Use of the new technology is not a reform itself and it can’t succeed in addressing

the problems, if isolated from other changes in organization of procurement

processes and auxiliary practiceOr

Stick to core principles (don’t get distracted with technology)

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THANK YOU!QUESTIONS?