11th%20International%20Anti-Corruption%20Conference

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11th International Anti-Corruption Conference

• Enhancing Transparency through Government
  e-Procurement System (GePS)
• Jae Hyun Yum

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Table of contents

• 1. What is Korean Government Procurement like?
• 2. Why and how has GePS been developed?
• 3. What are the characteristics of GePS?
• 4. Major contents of GePS
• 5. How do we enhance transparency through GePS?
• 6. Closing remark

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1. What is Korean Government Procurement like? (1)

• Government procurement in Korea
• Combination of centralized and decentralized
  procurement system
• - Centralized system
• Procurement of central and local government
  organizations (construction projects worth more
  than 2.4 million, goods worth more than 50,000)
• Mandatory use of central procurement agency
  (Public Procurement Service PPS)
• - Decentralized system
• Procurement of government corporations or
  non-profit organizations
• Optional use of PPS

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1. What is Korean Government Procurement like? (2)

• Size of public procurement market in Korea (as of
  2002)
• Public Procurement Service (PPS)
• Central Procurement Agency
• - supply goods and services for
  government use
• - contract and manage public works
• - stockpile raw materials
• Operating organization of Government
• e-Procurement System (GePS)

• Volume of procurement 56 billion
• - Centralized 17 billion (30)
• - Decentralized 39 billion (70)

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2. Why and how has GePS been developed? (1)

• General characteristics of traditional government
  procurement
• Paper oriented procedures
• - generate massive paperwork
• Labor intensive works
• - demand various stages of process
• Complicated processes
• - cost accounting, bid evaluation etc.
• PPSs opportunity to initiate
• digitalized procurement system

• Inefficiency
• Low transparency
• Low service quality

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2. Why and how has GePS been developed? (2)

• PPS introduced
• - Procurement EDI in 1997
• - e-Shopping Mall in 1997
• - Electronic Tendering Service in 2000
• - Electronic payment in 2001
• to lead e-government.
• Established an government-wide e-procurement
  system (GePS) in September 2002.
• - Every public organization can use GePS.

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3. What are the characteristics of GePS?

• A single window for comprehensive procuring
  information of all public organizations,
  providing one-click online service for government
  procurement
• A device for dramatically enhancing transparency
  and fairness in the government procurement
  administration
• Expanding the expertise and efficiency of PPS to
  all other public organizations

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4. Major contents of GePS (1)

• Conceptual structure of GePS

Public organizations
Suppliers
GePS

• Portal site
• E-procurement system (ASP)

PPS
External link systems
Guarantee Agencies
Authentication Agencies
Associations
Banks
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4. Major contents of GePS (2)

• Providing integrated tender information of all
  public organizations
• - Tendering information of 24,000 public
  organizations
• Legally required to announce the bid on GePS
• 93 of bids are processed online
• ex) Tender information
• End-users, size of projects, estimated costs,
  technical specifications, and award criteria
• One-time registration for all the suppliers
• - Once registered in GePS, a company can
  participate in all kinds of tendering of public
  organizations
• - Number of registered suppliers 77,000
  companies

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4. Major contents of GePS (3)

• Covering the whole procurement process on the web
• - All process of procurement are digitalized
  from purchasing request, bid announcement,
  bidding, contracts, inspection, to payment
• ex) E-shopping mall
• Transactions of 26,000 products with 3.1 billion
• Promoting customer convenience and reducing costs
  by sharing information with 51 external systems
• - 10 guarantee agencies, 15 banks, 7
  associations, 6 certificate agencies, and 15
  other public systems

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5. How do we enhance transparency through GePS?
(1)

• Opening procurement information in real-time
• - From the initial stage of purchase
  request, information of specifications is
  disclosed to avoid preference to certain
  suppliers
• Receiving feedback through Online Customer
  Service Center
• - Showing contract method, award criteria,
  and results of award
• Increasing impartiality and competition by
  expanding bid opportunities
• - Prevention of wrongdoings including
  collusion and bids interruption
• Recent number of bidders increased 3 times
  comparing to the early days of GePS

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5. How do we enhance transparency through GePS?
(2)

• Preventing potential corruption through online
  procurement procedures
• - Electronic exchange of documents reduces
  unnecessary meeting between a contracting officer
  and contractors when submitting guarantee
  documents, making contracts and receiving
  payments
• Non face-to-face business environment isolates
  wrong-doings of contracting officers
• - Reduced room for arbitrary decision of
  contracting officers through automated process

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5. How do we enhance transparency through GePS?
(3)

• Integrated management of debarred suppliers to
  prevent them from participating in tender
• - Enlisting and publicizing debarred
  suppliers information on GePS
• - Ensures responsibility and reliability of
  government procuring contracts
• Establishing objective and transparent guidelines
  and procedures through analysis of accumulated
  contract data

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6. Closing remark

• International evaluation(reputation) of GePS
• - U.N. decided to present 2003 Public Service
  Award (PSA) to PPS in June 2003
• - PPS presented an e-Procurement establishment
  success at World Bank Conference in January 2003

• Future prospects
• PPS will continue to establish standards of
  e-procurement procedures and best practices in
  public procurement market
• contribute to creating an integrity procurement
  environment through maximizing its transparency

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Questions?