GeBIZ -

New Procurement Method

CHIA PUAY LONG PROGRAM MANAGER, GEBIZ E-COMMERCE DIVISION DEFENCE SCIENCE & TECHNOLOGY AGENCY 29 Jul 2003

Agenda

• • • • • • •

What is GeBIZ ?

Functionalities and Features e-Procurement Methods Benefits of GeBIZ GeBIZ Implementation Approach Challenges Faced Future of GeBIZ

GeBIZ - Government Electronic Business

• “One stop, non-stop” centre for Government business

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For public service officers to interact with their trading partners for procurement activities

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One-stop centre for suppliers to trade with the entire Government

• GeBIZ is a Singapore Government wide e commerce initiative

The Partnership

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Joint collaboration between

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Defence Science & Technology Agency (DSTA)

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Ministry of Finance (MOF)

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Infocomm Development Authority of Singapore (IDA)

What is GeBIZ?

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Adopts some features of private sector portals e.g. convenient on-line shopping experience but adheres to public sector procurement disciplines (GPA compliant) which ensures:

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Transparency

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Fair and open competition

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Value for money

Application & Users

Ministries & Statutory Boards GeBIZ Enterprise Financial Systems (Oracle, SAP, PeopleSoft) GeBIZ Professional GeBIZ Partner Trading Partners E-Supplier Registration

GeBIZ Enterprise

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Intranet application for government agencies

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Decentralised procurement activities Goods Receipt Invoice Verification Check Payment Status Invitation to Tender (ITT) Invitation to Quote (ITQ) Framework (RFQ) Direct Purchase Credit Note Financial Systems Interface Period Contract (includes e-Catalogues) Tender Publication Catalogue Management GeBIZ Admin Estate Management System Construction Procurement Portal

GeBIZ Trading Partners

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Internet application for trading partners, both local and overseas

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Single stop for business opportunities Trading Partner Information Update On-line Supplier Registration View Tender Notices & ITQ Submit Quotations & Response to ITT Receive Purchase Order Submit E-Invoice View Payment Status View Period Contract Details

Access to Business Opportunities

• • • •

Tender Notices, Schedules, Awards Qualification Notices Auction Notices Invitation-To-Quote (ITQ)

Electronic Supplier Registration

• • •

One-stop registration for GeBIZ trading partners & EPPU (Expenditure Procurement & Policies Unit) Integrated with government supplier debarment information Source database for suppliers trading with Govt Supply Head Application Upgrade/ Renew Existing Supply Heads On-line Payment Workflow for Supplier Head Applications/ Upgrade/ Renewal View Payment Status Reporting Supplier Debarment

GeBIZ Functionality Features

• • •

System is centrally managed but procurement activities are decentralized Public Sector users can access GeBIZ from the intranet , and approval of requisitions can be done via email or web pages Support end-to-end transactions with trading partners for various modes of purchasing for ANY goods and services

GeBIZ Functionality Features

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Supports end-to-end transaction processing with standard SAP, Oracle and Peoplesoft Financial systems

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Support personalization & configuration Agencies by

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Component based which is generic application architecture and re-usable across applications

GeBIZ- Procurement to Payment

AGENCY GeBIZ Enterprise Tender SUPPLIER Tender Notices GeBIZ Partner Issue Invitation to Quote Generate Purchase Request Requisition ITQ Submit quotation Catalogues Prepare Quotation Purchase Request Seek Approval Generate Purchase Order Approval Fund Commitment Invoice Payment Purchase Order Delivery Process Purchase Order Purchase Order Prepare invoice for billing Financial Systems Invoice Receiving

Financial Systems Interface

GeBIZ Purchase Order Financial Systems (SAP, Oracle, Peoplesoft) Fund Commitment Status Purchase Requisition Pre-encumbrance Status Supplier Master Chart of Account Financial Financial Staging Area Interface Gateway Material Master Systems Goods Receipt Item Category Goods Return Invoice Closed PO Payment Status

E-Procurement Methods in GeBIZ

• • • •

Catalogue Buy - Established Period Contract

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Electronic Catalog Printed Catalog Framework Agreement Buy

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Request For Quotation (RFQ) Self-Service Buy

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Invitation To Quote (ITQ) Assisted Buy

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Complex ITQ or Invitation To Tender (ITT)

Differences between ITQ and RFQ Request For Quotation

1. Framework Agreement established between buyer and suppliers 2. Closed among awarded suppliers 3. Quotation Approval Authority Limit is S$1M

Invitation To Quote

1.

No Pre-defined agreement established 2. Open / Closed 3. Quotation Approval Authority Limit is S$70K

Typical Buying Scenario

Start Items found in e-Catalog?

N Items found in printed catalog?

N Items found in framework agreement?

N Simple Purchase?

N Y Buy from E-catalog Y Buy from printed catalog Y Raise RFQ to buy from framework Y Call ITQ (self-service buy) Assisted Buy Issue PO

Typical Buying Scenario

GeBIZ PO Goods Receipt E-Invoice Verification View Payment Status Close PO

Financial System

New Procurement Method: Online Reverse Auction

Since Jan 2001, Defence Science and Technology Agency has conducted 27 online reverse auctions and achieved a total of S$10m (or 11%) savings from S$89m worth of purchases As part of our e-Government programme, DSTA is now assisting other ministries with reverse auctions so that the benefits of procurement through reverse action can be enjoyed by all public sector agencies.

The intention is to aggregate demand from different ministries and agencies so as to purchase in bulk and enjoy even lower prices for Government purchases.

Benefits of GeBIZ - Buyers

• • • •

Increase transparency in Government Procurement

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Encourage competitive bidding Promote Fair and Open Competition

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Best value for money Global reach to suppliers Better overview of procurement activities and purchasing patterns within the agency Aggregation of requirements to establish cross agency period contracts or framework agreements

Benefits of GeBIZ -Buyers

• • • •

Better work efficiency procurement lead-time and reduce Streamlined workflow processes eliminate duplicate data entry Increase data accuracy & reliability Online reference to past procurement records

Benefits of GeBIZ - Suppliers

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Open access to business opportunities

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transparency of opportunities and information on government procurement

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Convenience

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One-Stop Business Centre sector electronically to trade with entire Government

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Online transactions & enquiry Increased confidentiality

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Responses are encrypted Low start-up cost

Phased Implementation Approach

GeBIZ Phase I

Jun 2000 – Catalog buy, Tender Publication, reach to all agencies, Set up of GeBIZ Service Centre (GSC)

GeBIZ Phase IIA

Nov 2001 – ITQ, TP Registration, Financial Interfaces to ORACLE & SAP

GeBIZ Phase IIB

Apr 2002 – RFQ Sep 2002 – ESR

GeBIZ Phase III GeBIZ Phase IV

GeBIZ ITT, credit note, FI with PeopleSoft, deployment of FI, Direct PO Current – NFS FI, E-link with MINDEF

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Billing, Mgmt Reporting, Demand Aggregation (Planned)

Mandatory Use of GeBIZ

• • •

FC 15/2000

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Issuance of electronic PO via GeBIZ fro Service Wide period Contract from 1 December 2000 FC 4/2002

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Online tender publication via GeBIZ starting from 1 Apr 2002 FC 5/2002

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Use of Framework Agreement Module from Aug 2002

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Use all GeBIZ modules (except GeBIZ Professional by July 2003

Challenges Faced

• Project Management Challenges –

System is dynamic, new requirements surfaced almost every week

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Phased Implementation Approach

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“Think big, start small, scale fast”

Manage the complexity • Technical Challenges – –

Scalability and robustness Need to integrate many components

Strong system and process integration capability is key

Challenges Faced

• Design Challenge –

One system for ALL agencies and ALL type of purchases

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Diversity of requirement and practices across different agencies

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effort on process rationalization, streamlining & standardization

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flexibility in configuration to cater to specific scenarios

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Standardization of Financial System Interface for different financial systems

Challenges Faced

• Getting the Users On-Board –

Buyer and Supplier Community Ramp-Up

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Change management across all agencies

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Convince buyers & suppliers of benefits Revise internal procedures Manage the transition

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Confidence-building

• • • •

Involve end-users in requirement-gathering Solicit feedback regularly Provide adequate training Provide good post-training support

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Operation Support for large buyer and supplier base

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Proactive helpdesk support

Challenges Faced

• Other Challenges –

Security, Audit, Legal Issues

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Terms & Conditions to govern the conduct of e procurement electronically Maintain traceability and accountability

Future of GeBIZ

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Portal to enable all e-commerce transactions with Govt of Singapore (GOS) to be performed electronically

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Integral part of e-government services

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Aggregation of demand across GOS and achieve best value for money for all agencies including publicly funded agencies

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GeBIZ as a means to explore new business model and processes enabled by technology Primary means to promote e-commerce adoption amongst trading community in Singapore

Thank You

Welcome to visit us at : www.gebiz.gov.sg