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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