chilecompra: a public policy to enhance transparency and efficiency
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ChileCompra: A public policy to enhance transparency and efficiency. Agenda. The Public Marketplace in Chile Outcomes A Public Management Reform Key considerations for a successful implementation. The Public Marketplace in Chile. Procurement system overview. - PowerPoint PPT PresentationTRANSCRIPT
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ChileCompra: A public policy to enhance transparency and efficiency
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• The Public Marketplace in Chile
• Outcomes
• A Public Management Reform
• Key considerations for a successful
implementation
Agenda
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The Public Marketplace in Chile
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Procurement system overview
Supported by a web-based marketplace.
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Procurement system overview
Contracting agencies are accountable for their procurement process
ChileCompra is agency responsible for operating and regulating the market
Stakeholders provide the check & balance structure
Market Place
Agents
Public Opinion
General Audit Office
Congress
Procurement Tribunal
SupremeAudit
Institution
PublicProcurement
Court
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5.3 Bids Per Process2,000,000 Visitors Per
Month15,000 Contracting
Officers
900 Public Agencies
1,650,000 Purchase Orders500,000 Business
Opportunities
Transactions worth 3.5% of GDP
90,000 Businesses Placing Bids
2009 ChileCompra Performance
6.200 Mio USD
100% of all Agencies
4.8 in 2008
Chile Population: 16 million
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Outcomes
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2.5
2.9
2.8
2.7
2.73
Fiduciary Capacity Min MaxVery Low 0.00 1.00Moderately Low 1.01 2.00Satisfactory 2.01 2.75Optimum 2.76 3.00
CPAR IDB 2008OECD/DAC
In terms on Integrity
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Suppliers’ Opinions: Transparency in the market place
• ¿Half Empty?
• ¿Half Full?
39,6%
21,1%
39,2%
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Leaders’ Opinions: Transparency in the market place
Source: Feed Back
13%
17%70% Public Sector Trade Unions
Judicial PowerOpposition Political PartiesGovernment Political PartiesPublic Sector WorkersCongress and Members of ParliamentCitizensInternational Organizations
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2009 savings up to USD 180 MM
HospitalFully Equipped
Cataract Surgery
Post DegreeScholarship
Computers forChildren
Police Cars
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A Public Management Reform
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PoliticsSolutions
Problems
2003: Window of Opportunity Kingdon
(1995)
Problem: “Regardless of the degree of development, public procurement is a risk area for corruption” (Thai, 2001).Politics: Transparency and corruption scandals in 2003.
1998 2000 2003 2004 2008
Solutions
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ChileCompra was a project in a broader agenda aiming to reform the State.
ICT
Institutions
HHRR Estrategy
Participaction
Service
Transperency
State reform
a
Strategy
Participation
• Other examples:• Quality services for the citizens
• Improvement the planning and control
management
• Electronic Government
• Improve cooperation between privet and
public sector
• Decentralization of the State
• New Ministry of Energy and New Ministry
of Environment
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• Political Support• The Ministry of Finance leads the Reform• No restriction on resources• “Sticks and carrots”• Objectives are steady, well-understood and shared by every
stakeholder• Officials are well-paid and have sound professional records.
Top-Down Implementation
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Waissbluth, 2006, “La Reforma del Estado en Chile 1990-2005”
(The State Reform in Chile 1990-2005)
The Role of Leadership
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Key considerations for a successful implementation
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The relevance of data
BIBusiness Intelligence
CRMCustomer
Relationship Management
Customers
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Threat: Small & Medium Enterprises perception of further market concentration
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Participación por Ventas según Segmento de Empresas
0%10%20%30%40%50%60%70%80%90%
100%
Economía Nacional Chilecompra 2006 Chilecompra 2007
MicroPequeñaMedianaGrande
18%
Participación por Ventas según Segmento de Empresas
0%10%20%30%40%50%60%70%80%90%
100%
Economía Nacional Chilecompra 2006 Chilecompra 2007
MicroPequeñaMedianaGrande
24%18%
Participación por Ventas según Segmento de Empresas
0%10%20%30%40%50%60%70%80%90%
100%
Economía Nacional Chilecompra 2006 Chilecompra 2007
MicroPequeñaMedianaGrande
35%18% 24%
Source: Chilecompra
Response: Having more suppliers is a strategic goal
National Economy ChileCompra 2006 ChileCompra 2007
Transactions by Company Size
MicroSmallMediumBig
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Threat: Resistance to change
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Improve contracting officers capabilities
Response
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Operations
Private Operators ChileCompra Multiple contracts + SLAs
Policy
Regulation
Training
Software
Operations
Data Center
Contact Center
Complementary Software Payments are no longer based on
transactions, but rather on fees.
Initial Investment in SW: USD 2 MM
ChileCompra’s budget: USD 11 MM
• Goods and services: USD 6 MM• Data center : USD 2,8 MM
• Customer support : USD 0,5 MM
• Software : USD 1,5 MM
• Training: USD 0,3 MM
• Others: USD 0,9 MM
• Internal HHRR: USD 5 MM
All figures in USD millions per year
+Service Level Agreements
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José Miguel de la CuadraHead of Public Procurement Division of ChileCompra
Ministry of [email protected]
Thank You