Session 4 Phiilippines Business Model Final 231111

8/3/2019 Session 4 Phiilippines Business Model Final 231111

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Asia and Pacific E-GP Conference

November 22-24,2011Denpasar, Indonesia

PhilGEPS :

A Government Managed Service

e-GP Regional ConferenceBali, IndonesiaNov 22-24,2011


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II. Procurement in the Philippines

I. System Overview

Outline

Over

view of PhilGEPS

Approach Followed for Implementation

Key Factors, Challenges and Lessoned Learnt


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System Overview The PhilGEPS (Philippine Government Electronic

Procurement System) is the single, centralized electronicportal that shall serve as the primary and definitive sourceof information on government procurement.

Main objectives: Increase Transparency

Level the Playing Field for Bidders Provide an Open, National and Competitive Procurement

Environment


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System Overview

PhilGEPS supports thefollowing functions :

Advertisement of notices,distribution of documents andposting of awards;

Buyer and Supplier Registry;

Virtual Store supporting commonuse and non-stocked items

Site Administration and Reportingfunctions

In 2012, PhilGEPS plans tointroduce:

e-bid submission and management of bid opening, evaluation, postqualification and award

Expanded supplier registry withproducts and services listings;

e-payment for user fees, bid forms,bid securities

Integrated security for encryption,decryption and distribution of bids


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PhilGEPS Activity

2001( Pilotsystem) Agencies 1,713 Suppliers 854 Notices 2,064 Value $ 784KUSD

2006 Agencies 3,200 Suppliers 12,000 Notices 18,000 Value $68M USD

2010/11 Agencies 11,500 Suppliers 54,000 Notices 153,000 Value $36B USD


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Funding Funded by the Government. Plan to implementuser fees for system cost recovery.

System Delivery Service contract with 3 rd party service provider forprovision of system, infrastructure, disaster

recovery plan with backup site, development andsupport services for fixed monthly service fee.

Cost to Government P50M a year (1 Million USD) for all system deliveryservices and functions (approx. $18/user/per year)Government operates and funds the PhilGEPSsupport office.

Time/Cost to implement Pilot system implementation 6 months; 5 yearoperation - $200,000 funded by CIDACurrent PhilGEPS system development 18months implementation.

Resources supporting operations The Government PhilGEPS office has 25 personnel.Service Provider has 30 personnel

Government Managed Service


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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 riskof 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 agenciesand suppliers.


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PhilGEPS (Government) Owns the PhilGEPS brand, URL, business

operation, users, all data and the systemdesign, workflows and other intellectualproperty provided by the governmentand/or its consultants.

Option to acquire rights to system at endof 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

Service Provider Owns all system components, software

licenses, system Source Code and all theequipment, facilities and networkinfrastructure supporting the system.

Turn over all data and required system rightsto government at end of contract.

Responsible for : Implementing the PhilGEPS and providing

technical advisory, planning, development

and implementation service to roll outrequired new functionalities in manageablestages

Providing all technical infrastructure requiredfor the effective operation and technicalsupport of the PhilGEPS.

Scaling service operation and infrastructure tomeet SLA regardless of growth

Rights and Roles


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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/softwarelicenses.

Technology Management: Government specify the required output. Service Provider handles allsoftware development management. Service Provider responsible to ensure technical platformsmeets functions requirements and set SLA.

Operation Risk Management: Service provider procures infrastructure, hardware or software,information management functions including backup and recovery procedures and disasterrecovery plan.

Human Resources Management: Government does not need to attract, recruit, train and retain ITstaff (developer,system and database administrators) This responsibility is with service provider.

Service Delivery Management: Single point of contact for service delivery. Government providebetter 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 theprocurement reform strategy.


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GovernmentLeadership

Policy andLegal

Framework

InstitutionalChange

Awarenessand Capacity

BuildingTechnology

GovernmentLeadership

Policy andLegal

Framework

InstitutionalChange

Awarenessand Capacity

BuildingTechnology


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Lessons Learned

The Business Model to be selected shall depend on the financial,operational, technological capacity of the country and their localenvironment.

The Government is ultimately responsible for the e-procurementsystem delivered and the users participating in the system.

Transition planning is required as part of the contract terminationas e-procurement is a long-term life cycle not just a 3 5 yearservice contract. Need to ensure business continuity from oneservice 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 on-

going learning process. System planning and development is a never ending process as

policies, technology options and user needs continue to evolve.


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Thank YouRosa Maria M. Clemente

PhilGEPS, Director III

Documents

Session 4 Phiilippines Business Model Final 231111