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French MOD e-procurement
-------------------------------------------
‘Possibility for businesses to fully
seize market opportunities’
Michel Cadic
@dga.defense.gouv.fr
French MOD e-business presentation
February 17th 2005
Slide N° 1 / 17
The aim :
to be more efficient in procurement

30 % of RFI - RFQ are closed without contract

To reduce the costs of supplies by 25 %

To give easier access to public procurement to :
- SME’s
- European companies

A full dematerialised process from the requirement to
the payment

DGA project enlarged to MOD : 15 to 17 G€ purchase
/year
French MOD e-business presentation
February 17th 2005
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French MoD market place : e-purchasing approach
Internet Network
IXARM.COM portal
Defence market place
ACHATS.DEFENSE.GOUV.FR portal
Contract
French MOD e-business presentation
February 17th 2005
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French MoD market place : e-purchasing approach
Internet Network
IXARM.COM portal
Defence market place
ACHATS.DEFENSE.GOUV.FR portal
Contract
Partners Network Area
Secured private Network (not link to Internet)
DGA
Suppliers
ESPACE PARTENAIRES
Armed
Forces
French MOD e-business presentation
February 17th 2005
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Others state
services :
minister of
finance…
Market place architecture
Defence
R &D
achats.defense.gouv.fr
www.ixarm.com
OTAN
OCCAR
Information
on public procurement
Armed forces
equipment
Suppliers data
Acquisition
equipement
- general equipment :
- infrastructure
- fuel
- health furniture
- food
- clothing
E-catalogue
Consultation
management
Market room
RFI
notice
BOAMP
JOUE
>RFQ
e-files
technical documents
E-auctions
E-invoice
E-offers by
suppliers
French MOD e-business presentation
Notification
e-awarding
February 17th 2005
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A fully operational market place
since November 2002
Year 2004 statistics

220 main purchasing entities,

Around 9000 registered users
– buyers : 2000
– suppliers : 18 000 users, including 7000 registered

Higher transparency of public procurement

100% RFQ above 90 K€ are published on the market place
» 4 k€ < ± 80% RFQ published < 90 k€

In number :
» 7000 calls for tenders published (with their technical and
administrative files)
» More than 55 000 downloads by suppliers
French MOD e-business presentation
February 17th 2005
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Statistics : call for tenders publication
French MOD e-business presentation
February 17th 2005
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First aim : to fully seize market opportunities,
public procurement is open to new suppliers

Portals design for supplier’s incentive :
– > To Facilitate and secure the candidature step
– All free access for suppliers,
– All necessary information (laws, adm. formularies, how to
get in touch with buying entities…),
– Ordinary computer, just Internet link.

Ixarm : far further than only advertising RFQ
–
–
–
–
Both in French and English,
Description of main defence programs,
Spontaneous proposals authorized (research…)
Marketing place for supplier’s adverts on their know how
French MOD e-business presentation
February 17th 2005
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Front page “ixarm.com” portal
French MOD e-business presentation
February 17th 2005
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Statistics : downloads by suppliers
French MOD e-business presentation
February 17th 2005
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Change Management : Key factors

Change management internal +external : 2/3 of the results

Not to be concentrated on tools

Think simple, easy to use

Demystify dematerialised process on Internet

Don’t match tool changes and buying process changes :
– No big bang
– Incremental process : step by step,
– What are the earnings / expectations of the buyers and the suppliers :
–
A win-win process :
 Efficient
procurement needs two efficient partners
French MOD e-business presentation
February 17th 2005
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Change Management towards suppliers


Actions done with success :

Meetings with professional organisations
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National and local meetings at the beginning of 2004 : 1500 suppliers

Online “Handbook”, Online FAQ ,Web “Hotline”

E-call for tenders training in order to test their ability to answer correctly

Personalised home page : specified interests and be awarded of new tenders
( 173 000 alert mails sent to registered suppliers in October 2004)
Data base for suppliers :
 1st step (done) : enable Cies to download all administrative documents
 2nd step (June 2005) : Cies fill a data base in order to have not to send
candidature files (75 % data common for the MOD)
» In order to facilitate and secure the candidature step
French MOD e-business presentation
February 17th 2005
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Difficulties and perspectives for suppliers :
the most important challenge

Very good perception of the push of tenders on the
market place, but reluctance to go further
 To incite suppliers to register : 85% of the downloads are done by
unregistered suppliers
 Develop e-offers (only 213 since January 2004) v/s answers still
through paper way
 To generalise the opportunities to use electronic-exchanges
(collaborative exchanges for programs …)
 Different standards used by marketplace
 Difficulty to have access to high speed network
 Perception of risk level : shared between supplier and purchaser in
private sector, all risk supported by suppliers in public sector.

Difference between SME and big Cies
 Security approach
 Internal process to elaborate offers
 Responsibility / Electronic Signature delegation
French MOD e-business presentation
February 17th 2005
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Focus on 2 difficulties

Electronic certificates
–
–
–
Survey with French partners (National Imprimery, local authorities…) on
3000 suppliers :
 7% have a certificate
 > 30% don’t know where to buy it
 < 30% don’t know what it’s for
It’s easier to sign a paper than by electronic way
High security certificate with face to face delivery / but it’s impossible to
oblige a CEO to go himself in a post or bank office to take it
 Difficult to define compromise : security / pragmatism

Encryption / anti-virus : contradiction between two goals
 Public purchaser shall not be attacked by virus put in the offer
 Supplier shall be confident that public purchaser will not see the offer
before official evaluation committee
 Trust and security : find a compromise too
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February 17th 2005
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Conclusion for French MOD market place
 Public buyer’s side :
 A real success for the e-call for tenders,
 Already high positive Return on Investment :
 Project costs 2000-2004 :4 people project team, 7 M€ (ASP mode)
 Earnings : transparency,
“soft money” / administrative costs : 2 M€ in 2003, 18 M€ in 2004,
“hard money” / on supplies : not yet measurable
 Supplier’s side :
 Success for downloads ,
 For other possibilities of the procurement cycle (e-tenders, reverse
auctions..) : only if suppliers could find their own interest on it
French MOD e-business presentation
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Conclusion
 How to go further with at European level ?
 Certificates : Bridge Certification Authority project to enlarge
 Now it’s quiet impossible to receive trans-borders eoffers if the supplier hasn’t local (buyer) certificate
 Reverse-auction code of conduct
 To develop common supplier’s register
 To incite development of high speed network
 To prompt interoperability / standardisation (XML, private
supply-chain compatible or not with public standards)
 To help to conduct change management towards suppliers
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February 17th 2005
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Questions ?
 More information on :
– www. ixarm.com (both in French and English)
– www. achats.defense.gouv.fr (French)
– mails : [email protected]
[email protected]
French MOD e-business presentation
February 17th 2005
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