comprasnet

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Electronic Procurement the Experience of the
Brazilian Federal Government
Marcos Ozorio de Almeida Secretariat for
Logistics and Information Technology
Ministry of Planning, Budget and Management
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Federal Government Guidelines

• Less red tape
• Efficient processes
• Standard procedures
• Support information tools for the public manager
• Managerial controls on expenditures
• Increased Competition on tenders
• Cost Reduction
• Transparency

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Topics Presentation

• General Explanation on the General Services
  System SISG, the SIASG IT support system and
  SIASG/COMPRASNET environment
• Inverse Auction and Virtual Inverse Auction
• Brazilian cooperation initiatives on government
  procurement

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SISG and SIASG IT system and COMPRASNET

• Modules
• Characteristics
• ITC interactivity incorporation on the Internet
• Managerial tools facilities
• Transparency, accountability and social control
  characteristics
• Some statistics on procurement of goods and
  services
• Facilities offered

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General Services System- SISG
Other Branches
SISG
States and Municipalities
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Information System
COMUNICA
SIDEC
SICAF
SISPP
SICON
SIASG
CATMAT
SISME
COMPRASNET Federal Government Procurement Portal
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Unified System for Pre-registration of Suppliers
- SICAF

• Certifies fiscal compliance through on-line
  consultation (on-line checking of SRF, FGTS,
  PGFN, INSS registers)
• Provides fast and unbureaucratic pre-registration
  of Federal Government suppliers
• Allows pre-registration through internet
  SICAFWeb

• 170 thousand registered suppliers
• 2,000 new registrations a month

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Number of Suppliers Registered
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Types of Suppliers Registered
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Electronic Posting of Purchases and Contracts -
SIDEC

• Electronic forwarding of documents for
  publication in the Federal Governments Official
  Journal
• Automatic posting of invitations to bid and
  tender results on the Internet
• Allows searching and download of invitations to
  bid

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Tenders Announced by SIDEC
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Integrated Price Posting System - SISPP

• Registers and stores in a data base the prices
  practiced by the Federal Administration in
  previous contracts
• Provides public managers with a price reference,
  for assessment of procurement convenience

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Contract Management System SICON

• Allows registration and financial monitoring of
  contracts undertaken within the Federal
  Administration

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Generation of Draft Awards System - SISME

• Automatic issuance of Award drafts, linked to
  financial execution of the National Treasury -
  SIAFI
• Ensures that all Federal Administration
  contracting and purchases go through the System

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Supplies and Services Catalog - CATMAT

• Defines specifications and quality standards for
  supplies and services purchased by the
  Government, adopting the Federal Supply
  Classification criteria.
• 45 thousand supply items already catalogued,
  organized into 13 thousand supply lines and 2
  thousand service lines

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Management Information

• Data warehouse Aggregated data on government
  purchases for monitoring of indicators.
• Comprasnet Bulletin monthly statistical
  information on current expenditures

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www.comprasnet.gov.br
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Some data on SIASG/ Comprasnet in 2001

• Accesses on the Portal 2,400,000 (average
  monthly 300,000)
• Tenders posted 29,092 (in 2001)
• Suppliers registered 170,000 (December 2002)
• Subscribers gt 40,000 suppliers (September 2002)
• Tenders published 160 a day (average of 2002)
• Total tenders published in 2001 41,549

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Information and Services available at COMPRASNET

• Public access through the Internet
• Linked to www.e.gov.br (Government Network)
• Electronic inverse bidding
• Live inverse bidding
• Electronic Price Quoting
• Price of purchase registration
• Publications and legislation
• Complete bidding documents
• Tender announcements

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Information and services available at COMPRASNET

• Tender results
• Contract statements
• SICAF Payment Form
• E-mail by interest profile/Preference Lists
• Specialized forum
• Payment gateway

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Examples of Transparency and Social Control

• Electronic Price Quoting (e-shopping)
• Tender Announcements
• Inverse Auctions Agenda
• Inverse Auctions Underway
• Inverse Auctions Results Aid Memoirs

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Electronic Price Quoting
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General View
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General View
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Tender Posting
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General View
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General View
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General View
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General View
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Inverse Auction Agenda
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Legal Framework

• Law nº 8.666, 1993
• Provisional Measure n.º 2.026, de 4/5/2000
• Decree nº 3.555, de 8 of August of 2000
• Decree nº 3.693, de 2 of December of 2000
• Decree nº 3.697, de 21 of December of 2000
• Decree nº 3.784, de 6 of April of 2001
• Law nº 10.520, de 17 of July of 2002

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Inverse Auction and Virtual Inverse Auction

• Background information on the adoption of the new
  mode of procurement
• Operational procedures
• Impacts of the use of the reverse auction

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Advantages of the Inverse Auction

• Increased competition
• Ease of use
• Transparency and Social Control Guarantied
• Increased participation opportunities
• Use of new technologies

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Inverse Auction

• New tendering modality, introduced in August 2000
• Allows direct confrontation between suppliers
• Successive bids are made until a winner is
  announced
• There are two forms
• Live inverse bidding
• Electronic inverse bidding

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Inverse Auction Use

• Procurement of common goods and services
• Performance and quality standards objectively
  defined in invitation for bid

EXAMPLES
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Electronic Inverse Auction

• STAGES
• I - Announcement
• II - Qualification
• III - Registration of proposals
• IV - Presentation of bids
• V - Award

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II - QUALIFICATION

• Interested suppliers are previously qualified by
  the administrator of the electronic inverse
  auction system
• They receive access codes that allow
  participation in any reverse auction

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Suppliers View
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General View
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General View
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III - REGISTRATION OF PROPOSALS

• Bidders make their price proposals through the
  Internet, on the day and time defined on the
  Invitation to Bid
• the inverse auction begins with the opening of
  the proposals

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Suppliers View
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Inverse Auctions Underway
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IV - PRESENTATION OF BIDS

• Bidders can make their bids on the Internet
• the system only accepts prices that are lower
  than the lowest initial proposal or the previous
  bid
• the bidding stage may be concluded in two ways
• 1. Randomly
• 2. Upon the reverse auctioneer's
• decision

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Suppliers View
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General View
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General View
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General View
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Inverse Auctions Aid Memoirs
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V - AWARD

• The winner is announced immediately on the
  electronic system (Aid Memoirs of the session)
• the winner must prove eligibility to supply to
  the Federal Government
• the system posts the results of all approved
  reverse auctions

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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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General View
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Tender Results
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General View
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General View
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General View
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General View
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Inverse Auction Simulator
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Impacts of the Inverse Auction

• Total expenditure on procurement of goods and
  services R 14,2 (US 5.7) billion/year (2002
  US 1.00 x R 2,50)
• Out of this total, 20 has been procured by means
  of inverse auctions - amounting to R 3,1 (US
  1.24) billion/year
• Estimated direct economy in 20 of the
  expenditures, i.e. R 620 (US 248) million/year

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Impacts of the Inverse Auction

• Number of Inverse Auctions until December of
  2002 - 8,550
• Value of goods and services acquired R 1,953
  billion (US 781.2 million)

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Inverse Auctions Awardeduntil August of 2002
Source Monthly COMPRASNET Statistical Bulletin
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Services acquired by inverse auction main by
value
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Materials acquired by inverse auction main by
value

•  

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Impacts of the Inverse Auction

• The purchases by means of the reverse auction may
  reach 40 of the total contracts undertaken by
  means of competitive bidding (around R 5.7/ US
  2.3 billion a year)

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Impacts of the Inverse Auction

• Increased amount of purchases made under
  competitive modalities
• More transparency and opportunities to
  participate
• More agile and non bureaucratic procedures
• Suppliers pre-register only once
• Reduction in the time required for Qualification
  of suppliers
• Less time required for tendering
• Electronic posting of tender with ample access by
  the interested parties
• Staff freed for more complex activities

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Inverse Auction in the States

• Law 10.520/2002 has extended use of the inverse
  auction by states and municipalities
• Several States (São Paulo, Bahia, Pernambuco,
  Mato Grosso etc.) developed, bought or entered
  into partnerships of their own inverse auction
  systems

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Brazilian cooperation initiatives on government
procurement
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Cooperation initiatives Underway

• Multilateral initiatives (World Bank, IADB, OAS)
• Bilateral initiatives (Governments of Bolivia,
  Peru, Colombia, Nicaragua, Paraguay, Argentina,
  India etc.)
• States and municipalities
• National international recognition (COMDEX,
  CONIP, Hélio Beltrão Prize European Union e-gov
  Best Practice, UN-UNOPS Fair of July 2001, B2B
  Best Practices in e-commerce.)

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Possible Cooperation initiatives

• Planning
• Legislation
• Human Resources Training
• IT Information systems modelling
• Experience interchange
• Standards for procurement procedures and bidding
  documents and regulations

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• Marcos Ozorio de Almeida
• Secretariat of Logistics and Information
  Technology
• Ministry of Planning, Budget and Management
• Tel [phone]
• Fax [phone]
• E-mail marcos.o.almeida_at_planejamento.gov.br