E-Government Procurement Handbook - Asian Development Bank
e-Government Procurement Handbook
e-Government Procurement Handbook
? 2013 Asian Development Bank
All rights reserved. Published in 2013. Printed in the Philippines.
ISBN 978-92-9254-322-8 (Print), 978-92-9254-323-5 (PDF) Publication Stock No. TIM125253
Cataloging-In-Publication Data
Asian Development Bank. E-government procurement handbook.
Mandaluyong City, Philippines: Asian Development Bank, 2013.
1. Government purchasing. 2. E-government. I. Asian Development Bank.
The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.
ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.
By making any designation of or reference to a particular territory or geographic area, or by using the term "country" in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.
ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB.
Note: In this publication, "$" refers to US dollars.
Photo Credits Cover: Jingwen Lu, Lei Kan
6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444
For orders, please contact: Public Information Center Fax +63 2 636 2584 adbpub@
Printed on recycled paper
Contents
LIST OF TABLES, FIGURES, AND BOXES
viii
PREFACE
ix
ACKNOWLEDGMENTs
x
Abbreviations
xi
INTRODUCTION
1
1 THE CASE FOR E-GOVERNMENT PROCUREMENT
7
1.1 Definition of e-Government Procurement
7
1.2 e-Government Procurement Systems Plotted on Timescale
8
1.3 Importance of Public Procurement and Government Procurement
10
1.4 e-Government Procurement Objectives
11
1.5 Key Measurable Benefits of e-Government Procurement
16
1.6 Common e-Government Procurement Misconceptions
17
1.7 e-Government Procurement and Procurement Reform
18
1.8 Challenges of e-Government Procurement
19
2 POLICY, LEGAL, AND REGULATORY FRAMEWORK
20
2.1 Policy
20
2.2 Centralization versus Decentralization
23
2.3 Leadership
23
2.4 Institutional Roles
24
2.5 Procurement Processes and Practices
24
2.6 e-Government Procurement Operational Policies
26
2.7 Legal and Regulatory Framework
27
2.7.1 Signatures and Authentication
29
2.7.2 Public-Key Infrastructure
30
3 STRATEGIC CONSIDERATIONS FOR GOVERNMENT IMPLEMENTERS
32
3.1 Transition from Manual Procurement Process
32
3.2 Choice of e-Government Procurement Business Model
35
3.3 Single System or Multiple Systems
38
3.4 Software Selection and Implementation Considerations
39
iii
iv Contents
3.4.1 Factors to Consider When Selecting a System
40
3.4.2 Contracting Considerations
41
3.4.3 Scalability
42
3.4.4 Flexibility and Customization
43
3.4.5 Data Considerations
43
3.4.6 Special Requirements
44
3.4.7 The Implementation History of the Provider
44
4 CHANGE MANAGEMENT AND CAPACITY DEVELOPMENT
45
4.1 Operational Requirements
45
4.2 Outsourcing e-Procurement Functionality--Independent Software Providers
46
4.3 International Cloud-Based e-Procurement of the Future
48
4.4 Country Experiences
49
4.4.1 India
50
4.4.2 Indonesia
50
4.4.3 The Republic of Korea
51
4.4.4 The Philippines
52
5 READINESS ASSESSMENT
53
5.1 Risk Assessment
54
5.1.1 Risk Assessment Methodology
55
5.2 Strategic and Architectural Alignments
56
5.3 Costs and Values
57
5.4 Interpretation
57
5.4.1 Using the Comparison Chart
57
5.4.2 Responses to Exceptions
59
5.4.3 Using the Standardized Indicator
59
5.4.4 Detailed Analysis
59
6 IMPLEMENTATION IN GOVERNMENT
61
6.1 Developing an e-Government Procurement Reform Strategy
63
6.2 Leadership and Institutional Structures
65
6.3 The Project Management Unit
66
6.3.1 A Reengineering Opportunity
67
6.3.2 Change Management
67
6.3.3 Engaging Stakeholders
67
6.3.4 Retain Control of the Project
68
6.3.5 Backup and Security Planning
68
6.4 A Phased Approach and Piloting
68
6.4.1 A Pilot Project
69
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