e‐Procurement Reference Guide
MODEL 1: SHARED SERVICE Shared Service – A third‐party e‐Procurement service that is fully managed, owned and operated by the third party and used by one or more governments and their suppliers. This approach has been used in Canada where the choice of a third‐party service offering had more to do with bringing together multiple independent jurisdictions into one national portal. Though each jurisdiction had the means to establish its own system, they believed an independent service provider would be better suited to support to their collective objectives than a governmentrun service. The overall objective was to establish transparency across the country, and to promote and support open and unrestrictive access to all government opportunities, regardless of vendor jurisdiction. For the details, please click here. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/S tudy_on_e‐GP_Business_Models_November_2009.pdf#page=12)
MODEL 2: PRIVATE PUBLIC PARTERSHIP Public Private Partnership (PPP) – A government e‐Procurement solution that is managed, owned and operated by a third‐party service provider, often with the intent to transfer the platform back to the government in the future. This approach has been used in India. For the details, please click here. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/St udy_on_e‐GP_Business_Models_November_2009.pdf#page=22) PPPs are often the chosen path when the objectives are to ease the financial constraints on the government while at the same time increase its efficiency and effectiveness. Similarly, there is also the need to understand the key aspects that play a significant role in the effectiveness and indeed the appropriateness of PPPs in such scenarios. InfoDev supported the development of the Knowledge Map and the Handbook (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resourc es/HD2006‐LW‐Bankmap_by_InfoDev.pdf) that helps identify such specifics, and highlight the importance of policies, programs, services, and instruments that may facilitate the engagement of the private sector into areas that were hitherto the domain of the government. It also described the various models of PPP (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/
MODEL 3: GOVERNMENT OWNED AND OPERATED Government Owned and Operated – A government developed and operated e‐Procurement solution that may or may not have been delivered by third‐party partners. In Singapore, where the government had the in‐house technical capabilities and resources to develop and maintain its own e‐Procurement system, a government owned and operated system made the most sense. Even though the system is owned and controlled by the government, the DSTA (the operating agency for the system) operates the service as an independent business service offering which is fully self‐funded through the application of service fees. Users, both government and vendor, enter into an agreement with DSTA to use the system. Similar to the third‐party service providers under the other three approaches, the DSTA provides all of the necessary technical services to support the operation and development of the system as well as help desk and management services to support users and to continue building the online marketplace. To better support its customer base, the DSTA continues to plan and develop new features and functions for the system as the product evolves.This approach is the most common worldwide. For a detailed example from Singapore, please click here. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/S tudy_on_e‐GP_Business_Models_November_2009.pdf#page=29) More information about the eProcurement system GeBIZ is here. (http://siteresources.worldbank.org
MODEL 4: GOVERNMENT MANAGED SERVICE Government Managed Service – A government managed e‐Procurement solution that is operated and owned by a third‐party partner. This approach has been used in Philippines where the choice of a third‐party system had to do with mitigating the risk that would be associated with the development, management and operation of an e‐ Procurement system. The government was looking for a technical service partner and wanted to establish a service agreement for the development and delivery of the backend system. The service provider is the technical delivery partner, providing all services required for the development and delivery of the system. The service provider has ownership of the physical application and infrastructure; however, the Philippine Government retains ownership over the market brand, PhilGEPS, the URL, all data in the system and the overall business service operation. The government retains responsibility for all users of the system, as well as users who enter into a contractual relation with the government. The Philippine government has made a significant investment over the years in the development of the PhilGEPS operation, including office space and support staff required to support the system, but in the long term it maintains control of the business operation and can opt to acquire the current platform at the end of the contract period. For the details, please click here. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Study_ on_e‐GP_Business_Models_November_2009.pdf#page=34) The reviews of the different e‐Procurement solutions for Canada, Singapore, the Philippines and the State of Karnataka uncover a number of variations in business approach and system implementation strategies. The common principles for an e‐Procurement system, however, remain the same: transparency, efficiency and the establishment of a more open and competitive environment for government procurement. Regardless of the business model used, it is recommended to always have Service Level Agreements in place. A sample Applications Service Agreement can be accessed here. (http://siteresources.worldbank.org/INFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/Applica tions_Service_Provider_Agreement.pdf)
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