Launching
Launching and
and
Implementing
Implementing
Electronic
Electronic Procurement
Procurement
System
System in
in Korean
Korean
Government
Government
Professor Suk-Won Lee
Graduate School of Public Administration
Seoul National University
Agenda
Agenda
• Overview of Procurement in Korea
• Introduction of GePS
• Policy Development Process
• Benefits of GePS
• Future Tasks
• Conclusion
Overview
Overview of
of Procurement
Procurement in
in
Korea
Korea
Public Organization
Supplier
Central
Government
Goods
Local
Government
Services
Public Research
Center
Construction
Public Procurement Service
SOEs
Centralized procurement system
Overview
Overview of
of Procurement
Procurement in
in
Korea
Korea
DomesticProcurement
Procurement
Domestic
ForeignProcurement
Procurement
Foreign
ConstructionContracts
Contracts
Construction
PropertyManagement
Management
Property
StockpileManagement
Management
Stockpile
PPS
Annual public procurement: $56 billion
Accounts for 47% of the total government expenditure
30% of the public procurement handled by PPS
What
?
What is
is integrated
integrated GePS
GePS?
A single window for comprehensive information on
procurement 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 Public
Procurement Service (PPS) to all other public organizations
One of the most Sophisticated E-procurement solution
covering everything from provision of information and
electronic tendering service to actual online payments
GePS: Government e-Procurement System
Features
Features of
of GePS
GePS
Transparency
Transparency
Clean
CleanGovernment
Government
Efficiency
Efficiency
Perfect
PerfectOn-Line
On-LineSystem
System
Specialty
Specialty
Competitiveness
CompetitivenessofofGov’t
Gov’t
Convenience
Convenience
Speed
SpeedManagement
Management
Security
Security
Safe
SafeSystem
System
Future
Future
Leading
Leadinge-Government
e-Government
Conceptual
Conceptual Structure
Structure
Public Procurement
Service System
Supplier
Services
Goods
Construction
Public Organization
GePS System
Central
Government
e-Documentation
System
E-Procurement
System (ASP)
Portal Site
Local
Government
Integrated Finance
System
Outside Link
System
Public Research
Center
SOEs
Vendor
G4C (Data
Information
Sharing System)
Management
Guarantee
Insurance
System
Digital Signature
System
e-Payment
System
Functions
Functions of
of the
the service
service
Submitting Tender
Placing Order/
Advertise Products
Information Sharing
Information Disclosure
Standardized Cataloging
System
Why
?
Why GePS
GePS?
PPS had endeavored to electronically convert the whole
process of government procurement procedures and made
remarkable progress in establishing the e-Procurement system
EDI (Electronic Data Interchange) was introduced to
all procurement process in 1997
However, there were still a lot of things that had to be done
Develop GePS
Policy
Policy Formulation
Formulation
Initiated by president
“I will build solid foundation for Information Technology
to lead our country to the world’s most advanced country
in Information Technology.” (1998 Inauguration Address)
Cyber Korea 21 project (1999~2002)
- Build on-line knowledge-based nation
- Build more efficient economy structure
- Improve quality of life
- Make Korea one of the top ten advanced countries in IT
Overview
Overview of
of Policy
Policy Development
Development Structure
Structure
Policy Formulation
Policy Implementation
Special E-Government
Committee
G2B Promotion
Working Group
System Development
Working Group
Vehicle
Vehiclefor
for
Cyber
CyberKorea
Korea21
21
11
11high
highpriority
prioritytasks
tasks
Led
Ledby
byMPB
MPB
BPR/ISP
BPR/ISP
Setting
SettingTimeline
Timeline
Standardization
Standardization
Led
Ledby
byPPS
PPS
System
SystemDevelopment
Development
System
SystemIntegration
Integration
BPR: Business Process Reengineering
ISP: Information Strategic Planning
Policy
Policy Formulation
Formulation
Special Committee
Committee for
for e-Government
e-Government
Special
GovernmentOfficials
Officials
Government
Viceminister
ministerlevel
level
Vice
Planningand
andFunding
Funding
Planning
PrivateSector
SectorSpecialists
Specialists
Private
Applicationof
of
Application
Latesttechnology
technology
Latest
Vehicle for president’s initiative
Policy
Policy Formulation
Formulation
Maximize Public Benefit
Four guiding principles
¾ Choose program pertaining to national interest
¾ Integrate interagency-related programs
¾ Maximize information sharing across agencies
¾ Promote the use of latest information technology
11 high priority programs (including GePS)
Policy
Policy Implementation
Implementation
Private and Public Sector Users
G2B Promotion Working Group (Led by MPB)
Scheduling
Scheduling
ConceptDesign
Design
Concept
Standardization
Standardization
Contractor
Business Process Redesign
Information Strategic Planning
Basis for System Design & Development
Policy
Policy Implementation
Implementation
PPS
System Development
Working Group
--Software
SoftwareDevelopment
Development
--Webpage
WebpageDevelopment
Development
System Development
Contractor
--Hardware
HardwareProcurement
Procurement
-- System
SystemIntegration
Integration
Resource
Resource
No. 1 internet connection
- Over 25 million Internet users
- Over 10 million Broadband internet subscribers
- Top internet using rate in the world
President’s strong commitment
- Interest and encouragement
- Bi-weekly office call with
chairman of E-Gov Committee
Overcoming
Overcoming Challenges
Challenges
Bureaucratic Resistance
Changing work process
Sharing information
Unfamiliarity with online work process
Leadership and Education
Linking performance with budget
President’s strong commitment
Education/training and commission discount
Overcoming
Overcoming Challenges
Challenges
Credibility of on-line transaction
Possible leakage of bid information
Forgery of document
Building on-line trust
Adopting latest encryption technology
Digital signature system
Benefits
Benefits of
of GePS
GePS
Transparency
Policy Development
Budget Saving
Competitiveness
Benefits
Benefits of
of GePS
GePS
Minimum
personal contact
Collusion
Prevention
Information
disclosure
Increased transparency
Benefits
Benefits of
of GePS
GePS
Increased
competition among
suppliers
Work efficiency
Avoiding
redundancy
Budget Saving
Benefits
Benefits of
of GePS
GePS
Stimulating
e-commerce
Intense
Competition
Convenience/
Cost Reduction
Strengthening Corporate Competitiveness
Benefits
Benefits of
of GePS
GePS
Better
Quality data
Easy data
Access/manipulation
Better understanding
Of policy environment
Better Policy Development
Future
Future Task
Task
Stable
system operation
The Government
e-Procurement
System
(GEPS)
Expanding the
Use of GePS
Maximizing customer
satisfaction
Future
Future Task
Task
¾ Stable System Operation
- Continuously enhance security and system protection
- User education for maximum use of the system
- Continuous system upgrade for better function
¾ Maximizing Customer Satisfaction
- Improving the reliability of the GePS contents
- Diversifying product choice
- Develop more flexible contract method
Future
Future Task
Task
¾ Expanding the use of GePS
- Provide consulting on e-procurement
- Develop new expertise in various fields including
Š Emerging new contract type
Š Price research methodology
Š Settlement of contract disputes in e-procurement
Conclusion
Conclusion
Efficiency
Transparency
Government
E-Procurement
System
Leadership
Effective Program
Management
Questions