brazil electronic government procurement expoxangai – feb/2010 ministry of planning secretariat of...
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Brazil Electronic Government Procurement ExpoXangai – feb/2010
MINISTRY OF PLANNINGSecretariat of Logistics and Information Technology
Brazilian Government Procurement
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WHO AM I?
Name: CARLOS HENRIQUE DE AZEVEDO MOREIRA
Education: CIVIL ENGINEER
POST GRADUATE IN PHILOSOPHY OF EDUCATION
M. Sc. SYSTEMS ENGINEERING AND COMPUTER SCIENCE
From: BRAZIL - MINISTRY OF PLANNING, BUDGET AND MANAGEMENT
Position: DIRECTOR OF LOGISTICS, WORKS WITH PUBLIC PROCUREMENT SINCE 2000
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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GOALS OF THIS
PRESENTATION
TALKING ABOUT:
The Brazilian experience in procurement
Regulations
Information Systems
Electronic Procurement, Information Technology structure
Results, options, strategies
Lessons learned
MINISTRY OF PLANNING
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BRAZIL´s Context
Territory Extension
27 states; 8.5 million km2; large social and infrastructure
variations
Administrative Organization (spheres)
Union, states and municipalities
Unique competitive bidding act (Act.8.666)
Federal Executive structure
Ministry of Planning, Budget and Management
Secretariat for Logistics and Information Technology
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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Federal Constitution• The Brazilian Constitution is a codified and partially
entrenched text with over 200 articles, due to the
characteristics of Roman law.
• Among other ample issues, it states that the whole body of the Public Administration in Brazil must abide by the laws and regulations of government procurement procedures, except for a list of special cases that can either be waived or deemed as inapplicable (i.e.: emergencies and disasters, war, Intelligence agencies, Armed Forces, etc).
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Act 8666-93• This Act establishes general rules on government
procurement for every sphere of the Federation (Federal Government – or Central Government; the states; the Federal District and the municipalities).
• It also states some of the principles under which government purchases must be held: isonomy, reverse auction, promotion of sustainable national development, legality, impartiality, morality (honesty), equality, publicity, abidance by the procurement notice, public awarding to the winner.
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Act 8666-93
Procurement modalities in Brazil: • I - competitive bidding; • II - request for quotes; • III - request for proposals; • IV - public contest; • V - auction.
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Act 8666-93• Competitive bidding – for purchases and contracts ranging
between R$ 650.000,00 to R$ 1.500.000,00 and above.
• Request for quotes – for purchases and contracts ranging between R$ 150.000,00 and R$ 1.500.000,00 (for engineering works and services) or from R$ 80.000,00 to R$ 650.000,00 (for purchases and services).
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Act 8666-93• Request for proposals – An invitation to participate in the
bidding process is sent directly to at least three suppliers. For purchases and contracts from R$ 80.000,00 to R$ 150.000,00.
• Public contest – for technical, scientific or artistic works. The winners are awarded prizes or prizes in cash as previously defined in the procurement notice.
• Auction – designed for the sale of used assets no longer useful to the Administration; products legally seized; or Federal Government's estates.
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Act 8666-93Procurement proceedings may be deemed as inapplicable:
• I - for the acquisition of equipment that can only be supplied by an exclusive (single) supplier;
• II - for contracting specialized technical services;
• III - when contracting with artists.
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Law 10520-2002
• Reverse auction – used for purchasing goods and common services;
• Can be held through electronic means.
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The Comprasnet & SIASG Architecture
Technologies
RequirementsSystem ArchtectureMonitoringAdministration ServicesServices Level Agreement (SLA)
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The Comprasnet & SIASG Architecture
Government Purchases Sub-systems
Government Procurement Publicity
The Comprasnet & SIASGnet Portals
Evolution of Government purchases through Electronic Reverse
Auction
Systems Architectures
Monitoring
Services management
Service Level Agreement Management (SLA)
Requirements & Technologies
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Windows Architecture
The Comprasnet & SIASG Architecture
Internet
BancosProdução
BancosHomologaçãoTreinamento
Produção(1) Produção(2)
Produção(3) Produção(4)
Treinamento
Homologação
Publicação
Desenvolvimento
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Windows Architecture
The Comprasnet & SIASG Architecture
INTELLIGENT WEB BALANCING + EXCLUSIVE ZDM
INTERNETSITE TRONCO
INTERNET
COMPRASNET
FIREWALL ROTEADOR DE BORDA
BALANCEAMENTO DE CARGA +
CONCENTRAÇÃO LAN
ZDM COMPRASNET
SERVIDORES WEB - COMPRASNET.GOV.BR
SERVIDORES BANCO DE
DADOSGigabit Ethernet - 1000 Mbps
Sentido comunicação usuários
Sentido comunicação web - BDs
Legenda
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Linux Environment
The Comprasnet & SIASG Architecture
Internet
BancosProdução
BancosHomologaçãoProdução(1)
Homologação
Publicação
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Mainframe Environment
The Comprasnet & SIASG Architecture
Internet
Produção(1) Produção(2) Produção(3) Produção(4)
Mainf rame
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Infrastructure
The Comprasnet & SIASG Architecture
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Infrastructure
The Comprasnet & SIASG Architecture
Int e rn e t
BancosProdução
BancosHomologaçãoT rei namento
Produção(1) Produ ção(2)
Produção(3) Produ ção(4)
Treinamen to
Homol ogação
Publicação
Desenvolvimento
Monitoração
Anti-vírus
Atualização SO
CorreioEletrônico
Agendadoresde tarefas
Servidoresde Backup
Gerência deMudanças eIncidentes
Sincronismode tempo
AutoridadeCertificadoraGerência
Segurança
Operação
Produção
Suporte
Gestão TI Segurança
Atend.Clientes
Rede
Comunidades
Gestão deServiços
Sala deSituação
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Technology
High AvailabilityDatabase ClusterFile server clusterLoad balance (CSS)
HardwareBladesRack
Storage High Availability
High speedRaidLan Free Backup
SoftwaresSQL ServerPostgreSQLWindowsLinux RH
The Comprasnet & SIASG Architecture
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Monitoring
The Comprasnet & SIASG Architecture
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Monitoring
The Comprasnet & SIASG Architecture
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Customer Services Central
The Comprasnet & SIASG Architecture
SERPRO – SERPRO Services Central (24 X 07)
1st level
2nd level – specialized customer services 0800 Exclusive Line - 0800 978 2329
Access via WEB Form
Access via e-mail: [email protected]
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Services Central
The Comprasnet & SIASG Architecture
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Incident Management
The Comprasnet & SIASG Architecture
The MSW, known as The Robot, works on Linux platform in both internet and intranet environments, showing the following alerts:
Service available
Connecting
Ocasional error (unstable situation)
Frequent error (critical situation)
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Service Level Agreement Management (SLA)
The Comprasnet & SIASG Architecture
Daily monitoring of SLA.
Coordination of the virtual Situation Room – interaction w/ Operations and Development to solve highly critical incidents.
Management Reports.
Coordination Situation Room/Command center.
Support to the implementation of new services.
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The Comprasnet & SIASG Architecture
SLA per architectureSupported users and transactions volumeService availabilityTechnical support availabilityIncident recoveryLoad Balance, Cluster and servers quantity
Service center
Service desk community
Systems development and support
Training
Security management
Service Level Agreement Management (SLA)
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Procurement Nowadays:
Mandatory use for Central government
Suppliers – must register; system keeps records of participation and compliance of taxes
Reverse auction (since 2000)
Live auction Electronic auction
physical (live) paradigm communication infrastructure
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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Quantity and value contracted, by type of tender – 2009 (USD)
Inelegibility from Tender 15.838 3.328.055.228,00
Reverse electronic auction 34.342 11.698.238.095,00
Reverse physical auction 1.091 1.565.905.726,00
Price survey 1.719 359.261.161,00
Total 291.703 28.417.203.897,00
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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Percentage of value contracted, by type of tender – 2009Value Contracted
27%
12%
11%
2%
6%
41%
1,3%
Competitive Bid
International Competitive Bid
Contest
Invitation
Exemptiom from Tender
Inelegibility from Tender
Reverse electronic auction
Reverse physical auction
Price survey
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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Price Contracted, by item type and year – 2002 to 2009
Itens Contracted
85% 87% 89% 92% 94% 94%81%
15% 13% 11% 8% 6% 6%19%
94%
6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007 2008 2009
ServicesGoods
Year Goods Services Total
2002 6.714.436.227,77 13.110.982.956,74 19.825.419.184,51
2003 6.239.584.416,48 7.905.994.920,67 14.145.579.337,15
2004 7.824.759.603,72 12.683.403.463,73 20.508.163.067,44
2005 12.852.792.348,21 12.217.478.931,71 25.070.271.279,92
2006 17.155.321.422,86 12.643.773.310,91 29.799.094.733,77
2007 18.196.557.330,44 17.026.034.187,04 35.222.591.517,49
2008 13.970.504.893,71 13.144.200.690,79 27.114.705.584,50
2009 22.761.175.025,94 26.968.931.791,38 49.730.106.817,32
Average 13.214.391.408,64 14.462.600.031,62 27.676.991.440,26
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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Share on purchase values, by economic sector and year – 2002 to 2009, Jan-DecYear Industry Commerce Services Others Total2002 2.170.846.859,79 3.010.529.295,88 12.347.612.578,07 2.296.430.450,77 19.825.419.184,512003 2.013.939.738,25 2.496.934.121,52 7.886.286.252,66 1.748.419.224,72 14.145.579.337,152004 2.575.989.695,44 3.217.862.562,60 12.818.664.238,01 1.895.646.571,39 20.508.163.067,442005 4.348.207.918,94 2.384.522.898,93 16.831.383.444,08 1.506.157.017,97 25.070.271.279,922006 3.780.890.181,14 5.791.407.950,95 17.894.371.444,07 2.332.425.157,61 29.799.094.733,772007 4.171.100.304,06 7.806.856.747,62 20.645.368.868,52 2.599.265.597,28 35.222.591.517,492008 3.616.822.993,73 7.873.070.336,60 14.318.522.630,64 1.306.289.623,53 27.114.705.584,502009 6.983.208.249,17 11.147.393.384,73 28.661.510.700,86 2.937.994.482,55 49.730.106.817,32
Average 3.707.625.742,56 5.466.072.162,35 16.425.465.019,61 2.077.828.515,73 27.676.991.440,26
Value Contracted
14% 13% 17% 12% 13% 14%
15%18% 16% 10% 22%
29% 22%
63% 67% 60% 59%53%
58%
12% 12% 9% 6% 8% 7% 5% 6%
13%11%
19%
62% 56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007 2008 2009
OthersServicesCommerceIndustry
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid.
Annual Variation on buying processes of common goods and services, by type of tender¹ – 2002 to 2009
Buying Processes
5% 3% 2% 2% 3%
60% 62%55%
36%
22%13% 12%
4%
14%9%
8%
6%
4%
5%
8%
37%67%
79%86%
19% 21%26%
19%
7% 3% 3%
1% 1,4% 2%
3,2%
3%
4%
2%
77,1%
4,8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007 2008 2009
Competitive Bid Invitation Price SurveyReverse Electronic Auction Reverse Physical Auction
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid.
Annual Variation on buying values of common goods and services, by type of tender¹ – 2002 to 2009
Value Contracted
47%40%
15% 11%
36%
5%
8%
6%
4%
6%
22%
55%
34%43%
59%
23%11% 7%
54,9%
13%7%
5,9%
0%1%
1%2%
7%
2%
8%
2%1%2%
3%
0,9%
79% 74%62%
12%
29,9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2002 2003 2004 2005 2006 2007 2008 2009
Competitive Bid Invitation Price survey Reverse Electronic Auction Reverse Physical Auction
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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ABC Curve on buying values of material groups from the Reverse Electronic Auction –2009
Reverse Electronic Auction: Materials Groups
15%
9%
8%
7%
5%
4%
4%
2%
16%
0% 2% 4% 6% 8% 10%
12%
14%
16%
18%
Equipment for automatic data processing,(including firmware), software, accessories and
support equipment
Vehicle
Construction materials
Furniture
Hygiene products
Value Contracted (%)
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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ABC Curve on buying values of services groups from the Reverse Electronic Auction – 2009
Reverse Auction: Group of Services
15,0%
11,4%
6,9%
6,1%
5,1%
3,7%
3,4%
3,2%
2,8%
2,7%
2,5%
2,4%
2,2%
13,5%
0% 5% 10% 15% 20% 25%
Other Support Services
Special Types of Construction Services
Iinvestigation Service and Security
Leasing services for the right to use non-financial intangible assets
Leasing services relating to rental or other goods
Other business, technical and professional services
Land transport services
Value Contracted (%)
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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OECD - Performance Indicators
Indicator Mesure Comprasnet 2005
Comprasnet 2006
Comprasnet 2007
Comprasnet 2008
Limit
Divulge of the licitations and results publishing
Number of licitations (%) in wich the edital and results are publicaly divulged
100% 100% 100% 100% > 95%
Time for preparation of the proposals
Number of days between edital publication and proposals opening
13,24 days 13,8 days 13,46 days 13,51 days 21 days in open contest 10 days in restricted contest 3 days in price cotations
Time to evaluate the proposals
Number of days between opening of the proposals and results publishing
not evaluated PE = 7,2 days PP = 3,1 days
PE = 11,5 days PP = 4,8 days
PE = 20,4 days PP = 11,4 days
> 90 days
Providers that participate
average number of providers that present proposals in each licitation
4,2 PE = 12,2 PP = 4,22 Cotação = 7
PE = 14,39 PP = 3,30 Cotação = 8,49
PE = 14,24 PP = 3,15 Cotação = 8,28
5 proposals or more ( calculated as na average for sampling of the transactions)
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OECD - Performance Indicators
Indicator Mesure Comprasnet 2005
Comprasnet 2006
Comprasnet 2007
Comprasnet 2008
Limit
Acquisition method used
Number of licitation processes that use lesser competitive method than foreseen in the law
0% 0% 0% 0% 1% or less
Direct hiring percentage of contracts attributed based on a single source
3,69% (quantity) 28,18% (money)
24,72% (quantity) 36,73% (money)
25,80% (quantity) 40,05% (money
26,56% (quantity) 37,81% (money
> 10% of the number of contracts and > 5% of the total value of the contracts
canceled processes
percentage of canceled licitations before contracts signature
0,89% 1,14% 0,90% 0,87% < 5%
Number of resources
Percentage between the number of appeals
12,35% 13,80% 30,10% 22,01% 10% < x < 50%
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OECD - Performance Indicators
Indicator Mesure Comprasnet 2005
Comprasnet 2006
Comprasnet 2007
Comprasnet 2008
Limit
Response time to the appeal
number of days betwwen the appeal presentation and final response
5 days 13 days 18 days 17 days > 21 days
Appeals results Percentage of contracts with alteration on the results due to an appeal
not evaluated not evaluated not evaluated not evaluated > 5%
Delayed payments
percentage of payments done with more than 45 days late
not evaluated not evaluated not evaluated not evaluated > 10%
Increase in the contract value
percentage of the increases done to the final value of the contracts due to modifications
50,42% (money)
32,30% (money)
8,06% (money)
6,27% (money)²
15% (calculated as a avarage on the simple
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SUPPLIERSMATERIALS /
SERVICES
PUBLISHING
RESULTS /REGISTERED
PRICES
COMMITMENT
CONTRACT
EXECUTION
REVERSE ACTION
Procurement System
PublicSession
SIAFI
Pro
cure
men
t D
ataw
areh
ouse
TRANSFER TO OTHER
SPHERES
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OfficialJournal
SIASGSIDEC
Official Press
UASG /Purchases
Units
Supplier
Adds at
Reverse Auction Notice
Adds at
Adds at
Consults Auction Notices
Adds at
Adds at
Adds to
Government Procurement Publicity
The Comprasnet & SIASG Architecture
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The Comprasnet Portal
The Comprasnet & SIASG Architecture
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Some Numbers
Providers 335,000
Users 66,000
Simultaneous users 22,000
Downloads/year 115,000
Byers Oficcers 4,000
Goods 195,000
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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Systems – Cronology: List of Suppliers (1995)
Material Catalog (1995)
Electronic Publication (1997)
Reverse Live Auction (2000)
Reverse Electronic Auction (2000)
Automatic Commitment (2001)
Other Systems Integration (2002)
Price Registration System (2002) (Framework contracts)
Preferential treatment to small businesses (2006)
(*) IDB and IBRD accept Brazil´s electronic action (2007)
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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Perspectives:
Standardization and Scale
Green purchases
Changes in the Public Procurement Law:
Reverse Auction for works under USD 3.4 millions;
Use of IT in all types of tenders.
MINISTRY OF PLANNING Secretariat of Logistics and Information Technology
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Using Purchasing Power• In recent years, the Brazilian Government has used the
purchasing power to promote public policies:• Supplementary act 123-2006 and Decree 6204-2007 –
incentive to the recruitment of small businesses (exclusive auctions; preference criteria in the event of a tie).
• Act 8248-1991 and Decree 7174-2010 – incentive to companies that invest in technology development in Brazil (preference criteria in the event of a tie).
• Normative Instruction 1-2010 - define criterias to sustenability
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Share on purchase values, by economic sector and year – 2002 to 2009, Jan-Dec
Gráfico MPEs Secretariat of Logistics and Information Technology
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Lessons Learned:
• It is important to start gradually (virtuous circle)
• People are the most important value
• You must have political support
MINISTRY OF PLANNING
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“Electronic Procurement is not a PANACEA”; “it is an incremental process”.
“Every journey begins with the first step”, …
…but “it’s easier when you know a good way”
MINISTRY OF PLANNING