Launching and Implementing
Electronic Procurement System in Korean
Government
Launching and Launching and Implementing Implementing
Electronic Procurement Electronic Procurement
System in Korean System in Korean
Government Government
Professor
Professor SukSuk-Won Lee-Won Lee Graduate School of Public Administration Graduate School of Public Administration Seoul National University Seoul National University
Agenda Agenda Agenda
• Overview of Procurement in Korea
• Introduction of GePS
• Policy Development Process
• Benefits of GePS
• Future Tasks
• Conclusion
Overview of Procurement in Korea
Overview of Procurement in Overview of Procurement in
Korea Korea
Supplier
Services Services Goods Goods
Construction Construction
Public Organization
Central Government
Central Government
Public Research Center Public Research
Center Local Government
Local Government
SOEsSOEs
Public Procurement Service
Centralized procurement system
Overview of Procurement in Korea
Overview of Procurement in Overview of Procurement in
Korea Korea
Domestic Procurement Domestic Procurement
PPS
Construction Contracts Construction Contracts Foreign Procurement
Foreign Procurement
Stockpile Management Stockpile Management Property Management
Property Management
Annual public procurement: $56 billion
Accounts for 47% of the total government expenditure 30% of the public procurement handled by PPS
What is integrated GePS?
What is integrated
What is 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 of GePS Features of
Features of GePS GePS
Transparency Clean Government
Transparency
Clean Government Convenience
Speed Management Convenience Speed Management
Efficiency
Perfect On-Line System Efficiency
Perfect On-Line System Security
Safe System Security Safe System
Specialty
Competitiveness of Gov’t Specialty
Competitiveness of Gov’t Future
Leading e-Government Future
Leading e-Government
Conceptual Structure Conceptual Structure Conceptual Structure
Public Procurement Service System
Integrated Finance System
Integrated Finance System
e-Documentation System e-Documentation
System
G4C (Data Sharing System)G4C (Data Sharing System)
Guarantee Insurance
System Guarantee
Insurance System
Digital Signature System Digital Signature
System e-Payment System e-Payment
System Vendor
Information Management
Vendor Information Management
Supplier
Services Services Goods
Goods ConstructionConstruction
Public Organization
Central GovernmentCentral Government
Public Research Center Public Research
Center Local Government
Local Government
SOEsSOEs GePS System
E-Procurement
System (ASP) Portal Site
Outside Link System
Functions of the service Functions of the service Functions of the service
Submitting Tender
Placing Order/
Advertise Products Information Sharing
Information Disclosure Standardized Cataloging System
Why GePS?
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 Formulation Policy Formulation Policy Formulation
“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)
Initiated by president
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 of Policy Development Structure Overview of Policy Development Structure Overview of Policy Development Structure
Policy Formulation Policy Implementation
Special E-Government Committee
System Development Working Group G2B Promotion
Working Group
Vehicle for Cyber Korea 21 11 high priority tasks
Led by MPB BPR/ISP
Setting Timeline Standardization
Led by MPB BPR/ISP
Setting Timeline Standardization
Led by PPS
System Development System Integration
Led by PPS
System Development System Integration Vehicle for
Cyber Korea 21 11 high priority tasks
BPR: Business Process Reengineering ISP: Information Strategic Planning
Policy Formulation Policy Formulation Policy Formulation
Special Committee for e-Government Special Committee for e-Government
Vehicle for president’s initiative
Government Officials Vice minister level Planning and Funding Government Officials
Vice minister level Planning and Funding
Private Sector Specialists Application of
Latest technology Private Sector Specialists
Application of Latest technology
Policy Formulation Policy Formulation Policy 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 Implementation
Policy
Policy Implementation Implementation
Private and Public Sector Users
G2B Promotion Working Group (Led by MPB) Scheduling
Scheduling Concept DesignConcept Design StandardizationStandardization
Contractor
Business Process Redesign Information Strategic Planning
Basis for System Design & Development
Policy Implementation Policy Implementation Policy Implementation
System Development Working Group
System Development Contractor
PPS
- Software Development - Hardware Procurement - Webpage Development - System Integration
- Software Development - Hardware Procurement - Webpage Development - System Integration
- Over 25 million Internet users
- Over 10 million Broadband internet subscribers - Top internet using rate in the world
Resource Resource Resource
No. 1 internet connection
President’s strong commitment - Interest and encouragement
- Bi-weekly office call with
chairman of E-Gov Committee
Overcoming Challenges Overcoming Challenges Overcoming 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 Challenges Overcoming Challenges Overcoming 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 of GePS Benefits of
Benefits of GePS GePS
Transparency
Budget Saving
Policy Development
Competitiveness
Benefits of GePS Benefits of
Benefits of GePS GePS
Minimum
personal contact
Collusion Prevention
Information disclosure
Increased transparency
Benefits of GePS Benefits of
Benefits of GePS GePS
Increased
competition among suppliers
Work efficiency
Avoiding redundancy
Budget Saving
Benefits of GePS Benefits of
Benefits of GePS GePS
Stimulating e-commerce
Intense
Competition Convenience/
Cost Reduction
Strengthening Corporate Competitiveness
Benefits of GePS Benefits of
Benefits of GePS
Better Quality data
GePS
Easy data
Access/manipulation Better understanding Of policy environment
Better Policy Development
Future Task Future Task Future Task
Maximizing customer satisfaction
Expanding the Use of GePS
Stable
system operation
The Government e-Procurement
System (GEPS)
The Government e-Procurement
System (GEPS)
- Continuously enhance security and system protection - User education for maximum use of the system
- Continuous system upgrade for better function
Future Task Future Task Future Task
¾ Stable System Operation
- Improving the reliability of the GePS contents - Diversifying product choice
- Develop more flexible contract method
¾ Maximizing Customer Satisfaction
Future Task Future Task Future Task
- Provide consulting on e-procurement
- Develop new expertise in various fields including
Emerging new contract type
Price research methodology
Settlement of contract disputes in e-procurement
¾ Expanding the use of GePS
Conclusion Conclusion Conclusion
Efficiency Transparency
Effective Program Management Government
E-Procurement System
Leadership
