NurcihanTAŞnurcihanozturk@kik.gov.tr

Public Procurement Expert

Public Procurement Authority

Electronic Public Procurement in

Turkish Public Procurement

System

Agenda

• Introduction

• Turkish Public Procurement System

• E-Procurement in Turkey:

• Electronic Public Procurement Platform

• Public Procurement Statistics

• Future Developments

2

Turkish Public Procurement System(TPPS)

Regulated by Public Procurement Law (PPL) No. 4734 which enteredinto force on January 1, 2003.

One of the objectives of this new law;

"Adaptation to international instruments on public procurement"

Public Procurement

LawNo. 4734

3

Turkish Public Procurement System(TPPS)

• Main Principles of PPL are;

Efficient Use

of Resources

Taxpayers’ Expectations

4

Public Procurement Authority(PPA)

• Established in 2002,

• Administratively and financially autonomous,

• The main duties of the PPA;

RegulationDispute

Resolution

Training E-Procurement

Gathering

Information

and

Statististics

International

Relations

5

E-Procurement

• E-Procurement;

Transparency SpeedCost

SavingStandardization

PublicSupervision

Therefore, e-procurement has a crucial role in procurement system.

Sustainability

Effective

Procurement

System

6

Benefits of Electronic Public Procurement

Standardization, transparency, speed, accord andpublic supervision in procurement procedures

Efficiency and effectiveness in tender dossierpreparation and tender evaluation

Up to 20% savings in procurement costs

7

E-Procurement in Turkey:Electronic Public Procurement Platform (EPPP)

• Operations that can be performed in EPPP, include publication of contractnotices, preparation of contract document by the contracting authorities,downloading of the contract document by economic operators, verificationof tax liability, balance sheet and income statement information, socialsecurity premium debt information of the economic operators.

Electronic Public ProcurementPlatform (EPPP) becameoperational on 1 September 2010.

EPPP;

• over 124.000 registered economic operators,

• over 31.000 registered contracting authorities,

• over 580.000 registered users.

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Electronic Public Procurement PlatformDevelopment Stages

.12 May 2009

Registration of contracting entities and economic operatorsstarted. EPPP Call Center (444 0 545) was in operation.23 February 2010

EPPP opened, all contracting authorities (CAs) could useEPPP. (Preparation and publication of tender documentsand tender notice)

1 September 2010

Economic operators can download the tender documentswith their e-signatures and so that they gain the status of«potential tenderer» according to the law.

1 December 2010

Legal and technical work of the project started.

9

Electronic Public Procurement PlatformDevelopment Stages

E-tender submission and evaluation at the call-off stages of framework agreements are in function.19 June 2013

EPPP registry and e-notifications to tenderers arecompulsory for Turkey based tenderers and via EPPP.1 January 2015

Bidding based on self-declaration started.1 July 2016

10

Electronic Public Procurement PlatformDevelopment Stages

Procedure of e-submission of tenders based on self-declarations

It has been in operation since 1 July 2016.

Instead of submission of documents concerning participation and

qualification, economic operators will only submit a tender letter and a

standart form for self-declaration about their qualifications.

E-submission is allowed in the goods and services procurement where open

procedure is used and estimated cost of contract is below 213.000,00 ₺.

(approximately 62.000 €)

In this procedure, some qualification documents such as bank reference

letter shall not be required.

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Electronic Public Procurement PlatformDevelopment Stages

Procedure of e-submission of tenders based on self-declarations

The lowest price offer is evaluated as the economically most advantageous

tender.

Procedure of electonic submission of tenders based on self-declarations will

result in considerable simplification for the benefit of both contracting

authorities and economic operators.

Pilot contracting authorities began conducting this procurement procedure in

which offers are prepared and taken electronically on EPPP.

We aim significant increases in the number of tenders in this procedure

compared to paper-based procedures.

12

EPPP by Numbers

01 September 2010 – 31 December 2015 EPPP

Registered Economic Operators (EO) + 101.000

Registered Contracting Authorities (CE) +30.000

Registered Users + 479.000

Tender Notices Published (2015) + 89.000

Blacklist Confirmations (2015) + 1.800.000

Contract Award Notices (2015) + 200.000

Daily Hit of EPPP + 92.000

Total Number of Visitors +108.000.000

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Procedures Conductedon the EPPP

Preparation of needs report,

(Unit and quantity of needs, CPV codes)

Registration of the tender,

(Type, procedure, budget and estimated cost of the procurement)

Preparation of tender documents,

(Administrative specifications, technical specifications including the

project, draft contract and standart forms)

Registration of those who purchase or download tender documents,

14

Procedures Conductedon the EPPP

Tender notice preparation, control and publication,

Addendums and clarifications in tender documents,

Forming the tender commission,

Registration of applications or tenders,

Registration of application or tender evaluations,

15

Procedures Conductedon the EPPP

Inquiries from related systems about qualifications of tenderers,

Blacklist confirmations,

Registration and publication of contract award information,

Registration of tender cancellations,

Notifications to tenderers.

16

Procedures Conductedon the EPPP

Contract Management;

Additional/deducted works or services,

Price adjustment (escalation),

Termination of contract,

Contract transfers,

Payments to contractors,

Inquiries about contract transfer prohibitions,

Preparation and recording of business experience certificates.

(over 167.000 number is recorded)

(In order to collect data on signed public contracts, to do analysis on a

sound basis and to digitize contract management process.)

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Electronic Public Procurement Platform

Tender Search Mechanisms:

• Search for tender notices by setting certain

criteria (tender type, tender procedure,

remaining period of tender date, province,

contracting authority, sector).

• Be notified instantly via e-mail about tender

opportunities.

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Electronic Public Procurement Platform

Every detail of all public tenders such as;

• Contract notice,

• Contract document,

• Information about the contracting authority,

• Contract award notice,

• Complaints by dissatisfied tenderers,

• Blacklist confirmation,

• Contract price and contract lots.

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E-tenders and E-evaluation:

• E-submission and e-evaluation are allowed in the goods

procurement where open procedure is applied and call-off stages of

framework agreements.

• When a contracting authority decides to use e-submission and e-

evaluation, paper based tenders are not allowed.

• E-tenders are prepared and submitted on the EPPP using e-

signatures. They are encrypted after submission and stored

confidentially until the tender opening time.

Electronic Public Procurement Platform

20

Electronic Public Procurement Platform

Integration of EPPP with other institutions:

EPPP

Ministry of Finance

National Satellite

Corporation

Ministry of Interior

SocialSecurity

Institution

Ministry of Health

Banks

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Electronic Public Procurement Platform

Inquiries from Related Systems:

• Ministry of Finance-Revenue Administration;

-Tax liability

-Balance sheet

-Income statement

• Social Security Administration;

-Social security premium debt information

• Banks;

-Bid bonds

-Bank reference letter

22

Public Procurement Statistics

Measuring Performance of Public Spending;

• Annual Public Procurement Monitoring Report

• Annual Activity Report

• Business Intelligence– Put into use in 2013,

– Gather statistical data about public procurement,

– Retrieve data faster, instantly and up-to-date,

– Provide data to the stakeholders in a more efficient way,

– Improve public procurement processes by employing data

mining.

23

Distribution of Public Procurements Carried OutUnder Law No. 4734 by Types of Procurement

24

Distribution of Public Procurements Carried OutUnder Law No. 4734

by Procurement Procedures and Types

25

Rates of Contract Values to Estimated Costs by Procurement Procedures and Types

26

Tenders Submitted in Procurements Carried Out Under The Law

27

Savings Contracting Authorities Economic Operators

Measurable

6,2 million ₺(~2 million €)

Savings due to printing of tender

documents (yearly) (620.000 tender

documents, avg. 50 pages, cost per page 0,2 ₺) 73 million ₺

(~ 23,5 million €)

Savings due to tender

document acquisition

(yearly) (620.000 tender

documents*document price)

31,9 billion ₺(~10 billion €)

Contract value savings (yearly)(Estimated Cost- Contract Value)

5 million ₺(~1,6 million €)

Savings due to electronic

communication with economic

operators (1 million notifications*5 ₺)

ImmeasurableTime savings

Time savings

Labour cost savings

Transportation savings

Benefits

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Future Developments

• E-procurement in all types of procurement

• E-catalogs and digitalization of procurement items

• E-remedies

• E-contract management

• Dynamic purchasing systems

• E-auctions

• Certification/registration systems

• Other integrations (such as judicial records)

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