using the e-procurement system data to measure...

Using the e-procurement system

data to measure transparency and

efficiency of public expenditures

Speakers:

Nazarov S., Chief Specialist, Treasury, Ministry of Finance, Republic of Uzbekistan.

Aliyev T., Head of Treasury, Ministry of Finance, Republic of Uzbekistan.

AGENDA

General Provisions

Electronic public procurement

Achieving transparency and efficiency of

public expenditures

Public procurement development

prospects

1

2

3

4

Location: Central Asia; Territory: 447.4 thousand km²Borders: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Afghanistan.

Administrative division: The Republic of Karakalpakstan, 12 regions (oblasts), 156

districts (rayons), 123 towns and cities.

Capital city: Tashkent.

Population: over 31 million.

I. GENERAL INFORMATION ABOUT THE COUNTRY

Core regulations:

The Budget Code of the Republic of Uzbekistan (#3RU-360 dated 26.12.2013);

Resolution #PP-1475 dated 07.02.2011 by the President of the Republic of

Uzbekistan: “On optimization of the public procurement system and on expanded

engagement of small business into public procurement”;

Resolution #302 dated 03.07.2003 by the Cabinet of Ministers of the Republic of

Uzbekistan: “On measures to improve the competitive bidding system applied in

capital construction”;


Uzbekistan: “On approving the procedure of public electronic procurement of

essential goods (works, services) from business entities through the special

information portal of the Uzbek National Commodity Exchange”;


Uzbekistan: “On additional measures to improve the process of public and corporate

procurement”;


Uzbekistan: “On measures to improve a competitive bidding process”.

Determines the quota allocated for small businesses as every type of goods (works,

services) is concerned

Initiates drafting of the regulatory documents on the public procurement process

Controls the public procurement process and allocation of quotas

Reviews reports on implementation of the Committee’s decisions

The Treasury of the Ministry of Finance is a working

body of the Government Committee

The Government Public Procurement Committee

Direct procurement

Procurement without competitive procedures

Selection of the best proposals

A supplier is chosen by a special committee established by the customer (employer)

e-Bidding

An electronic Dutch auction. The electronic system automatically chooses the lowest bidder

e-CataloguePublic procurement of essential goods (works, services) from business entities through a special information portal

Competitive Bidding

The Bid Committee compares the bids based on the requirements of the bid documentation, and awards a contract

up to 300 USD + cases referred to in PKM #456

300 to 100,000 USD

Over 100,000 USD

Up to 100,000 USD

Electronic public procurement

Public procurement procedures

II. Electronic public procurement

e-Catalogue

e-Bidding

e-Bidding

Suppliers

Application

Agent

State Budget

organizations

ANNOUNCEMENT

(APPLICATION)

2.1. Electronic auctions

Automated selection of the

auction winner (supplier)

at the close of the Dutch e-

auction at the Uzbek

National Commodity

Exchange (the contract is

awarded and its

conditions are drafted at

the close of trading)

Registration at the MoF

Treasury

Contract

Customer

1. Planning

2. Placement of an ad

Supplier

3. Searching for procurement ads

4. Matching procurement terms and conditions, and taking a decision on participation in bidding

5. Bidding

7. Contract finalization

8. Contract implementation

Main phases of the e-auction process

6. Auction

Example of choosing a supplier

in the process of e-auction

The Dutch auction lowers the starting price within 10 days from the date

of posting the ad on the portal;

At the close of trading, the lowest bidder (supplier) among all

participating bidders is awarded with the contract automatically

e-Catalogue is a way to organize procurement when

the customer selects goods in a systematized e-catalogue

where suppliers post their proposals in advance.

2.2. e-Catalogue

Commodity groups in the e-catalogue(the list of items is defined by the Government Committee)

Spare parts for vehicles

Components and spare parts for computer and office equipment

Construction materials

Miscellaneous equipment

e-Catalogue

Supplier posts its offer (data on its products)

Customer (a state budget organization) chooses the required goods

The system automaticallycompares the prices of suppliers,chooses the lowest bidder, draftsand awards the contract, andnotifies the accounts of both theCustomer and the Supplier.

Request for proposal mechanism

1.The system automatically notifies other bidders of similar products about their participation in the request for proposal;

2. Suppliers offer their prices for similar products within 48 hours

Functional mechanism of the e-Catalogue system

Customer

Request

for tires

Supplier #3

Req

uest

for

pro

po

sal

mech

an

ism

Supplier #2

200,000

UZS

270,000

UZS

Supplier #1

250,000

UZS

The s

yste

m s

ele

cts

a s

upplie

r w

ith

the low

est price

Supplier #2

200,000

UZS

Example of procuring goods through the e-Catalogue

ParametersProcurement through the e-

Auction

Procurement through the e-

Catalogue

The value threshold of the goods

(works, services) category$300 to $100,000 $0.00 to $100,000

The number of goods (works,

services) according to the list122 18

Timelines:

bidding —

signing and registration of the

contract —

11 to 18 days

10 days

1 to 8 days

4 to 7 days

48 hours (2 days)

2 to 5 days

Posting info on the product

specificationsState Budget organization (agent) Supplier (agent)

Advance Customers and suppliers Customers and suppliers (other

than guaranteeing suppliers)

Lowering the starting price Incremental price reduction

during bidding

Depending on

the supplier proposals

Comparative table of the public e-procurement methods

Transparency

EffectivenessBidding, contract awarding to bid-winners (suppliers), drafting

and registration of contracts is done by the software

application of the e-system.

There is a requirement to post the ad in advance (10 days

prior to bidding) (the public procurement system withstands

non-natural limitation of the number of potential suppliers).

The bid-winner is chosen automatically by the IT system

eliminating biased attitude of the customer’s (employer’s)

officers.

III. Achieving transparency and efficiency of public expenditures by

introducing e-Auctions

Anticorruption

mechanism

Speeding up the procurement process

Facilitating the procurement process

Easy to search

Achieving transparency and efficiency of public expenditures by

introducing e-catalogue procurement

# Indicators

Units

of

measure

2011 2012 2013 2014

2015

for 9

months *

1Held

transactions

number

of

transactio

ns

350,189 278,639 249,793 262,293 205,784

2Total of those held

transactions

billion

UZS166.9 347.9 416.8 470.6 347.7

3 Savingsbillion

UZS21.9 81.4 83.0 117.4 101.4

4Average value of a

transaction

thousand

UZS476.5 1,197.3 1,668.6 1,794.0 1,689.6

Information on the results of the e-auctions held in 2011-2015.

(www.mf.uz)

* USD-UZS official exchange rate as of October 1, 2015 (1 USD = 2621.0 UZS)

http://www.mf.uz/

166,856

347,887.6

416,807.7

470,565.1

347,699.0 350,189

278,639

249,793262,293

205,784

21,918.2

81,432.9 83,013.6

117,367.8 101,448.5

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2011 год апрель- декабрь 2012 год 2013 год 2014 год 2015 год за 9 м-ц

Сумма состоявшихся сделок (млн.сум) Состоявшиеся сделки Экономия средств по результатам торгов (млн.сум)

A diagram on the results of the e-auctions held in 2011-2015.

# Indicators Units of

measure

July-September

2015 September

1 Held transactions

number

of

transactions

33,129 5,151

2 Total transactionsbillion

UZS31.2 5.8

3Money saved through

bidding

billion

UZS7.7 1.7

4Average value of a

transaction

thousand

UZS941.5 1,120.4

Information on the results of public procurement through the

e-catalogue in June-September 2015

IV. Public procurement development prospects

Adoption of the Law of the Republic of Uzbekistan “On public procurement of goods (works, services)” and other regulations related to its implementation

The concept of further development and improvement of public procurement in the

Republic of Uzbekistan for 2015-2025.

Development of the unified e-procurement information system (the UzEPS system)

Training and qualification upgrades of the employees engaged in public procurement

International cooperation in the field of

e-procurement

Korea Memorandum of Understanding

(MoU) concluded with the Public

Procurement Service (PPS)

Cooperation in the field of

electronic procurement in 2009 with

the Korean International

Procurement Agency in line with the

MoU

UNDP and WB

The Concept Note for further

development and improvement

of public procurement in the

Republic of Uzbekistan for

2015-2025.

Drafting the law “On public

procurement of goods (works,

services)”

France

Collaboration in the field

of public finance

development

Thanks for your attention!

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