Electronic Public Procurement in Turkish Public Procurement System

M. Çağatay TAŞYÜREK cagataytasyurek@kik.gov.trPublic Procurement Specialist Public Procurement Authority

Agenda

Turkish Public Procurement System (TPPS)

Turkish Public Procurement Sytem has four historical background dates: 1) Auction, Contest and Tender Law no 661 dated 22 April 1925 2) Auction and Tender Act no 2490 dated 10 December 1934 3) State Tender Law no 2886 dated 08 September 1983 4) Public Procurement Law (PPL) no 4734 dated 04 January 2002

PPL has created an advanced model of

international procurement regulations.

PPL has created an advanced model of

international procurement regulations.

Turkish Public Procurement System (TPPS)

Currently, Public procurement is regulated by Public Procurement Law No. 4734 which entered into force on January 1, 2003.

One of the objectives of preparing a new law on public procurement was adaptation to international instruments on public procurement (EU Procurement Directives, UNCITRAL Model Law on Procurement, World Bank Procurement Guidelines, etc.).

Public Procurement

Law no. 4734

Public Procurement

Law no. 4734

Turkish Public Procurement System (TPPS)• Main Principles of PPL are;

Efficient Use of

Resources

Efficient Use of

Resources

Taxpayers’ ExpectationsTaxpayers’ Expectations

Public Procurement Authority (PPA)• Public Procurement Authority which is administratively and

financially autonomous was established in 2002.• The main duties of the PPA are;

RegulationRegulation Dispute Resolution

Dispute Resolution

TrainingTraining E-ProcurementE-Procurement

Gathering Information

and Statististics

Gathering Information

and Statististics

International Relations

International Relations

• E-Procurement

Therefore, E-Procurement has a crucial role in procurement systemTherefore, E-Procurement has a crucial role in procurement system

SustainabilitySustainability

Effective Procurement

System

Effective Procurement

System

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

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

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

• Electronic Public Procurement Platform (EPPP) became operational on 1 September 2010.

• Electronic Public Procurement Platform (EPPP) became operational on 1 September 2010.

• EPPP which is one of the most important e-government applications with over 30.000 registered economic operators, 25.000 registered contracting authorities and 400.000 registered users is being continuously improved.

• EPPP which is one of the most important e-government applications with over 30.000 registered economic operators, 25.000 registered contracting authorities and 400.000 registered users is being continuously improved.

Electronic Public Procurement Platform Legal and Administrative Background

Electronic Public Procurement PlatformDevelopment Stages

EPPP by Numbers01 September 2010 – 31 December 2012 EKAP

Registered Economic Operators (EO) + 30.000

Registered Contracting Authorities (CE) + 25.000

Registered Users + 400.000

Registered Tenders + 500.000

Contract Notices Published + 250.000

Black List Confirmations + 1.400.000

Contract Award Notices + 500.000

Daily Hit of EPPP 90.000

Total Number of Visitors + 40.000.000

BENEFITS OF ELECTRONIC PUBLIC PROCUREMENT

e-Signature / Encryption / Digitalization

Procurement Procedures on the EPPPPreparation of tender documents:• Contracting authorities that are registered on the system started to prepare the tender documents (pre-qualification documents, administrative and technical specifications, the draft contract, framework agreement, individual contract, standard forms) through EPPP. • Errors are reduced to a minimum level in the tender documents through automatic checks by EPPP for compliance with legislation.

Procurement Procedures on the EPPPPreparation of contract notices:• Contract notices beganto be created automatically by the system when the tender documents are prepared by the contractingauthorities.• Economic operators have access to contract notice and documentation

in electronic environment.

Procurement Procedures on the EPPP

Downloading of of tender documents using e-signatures/m-signatures:• The tender document can be downloaded free of charge via EPPP by using e-signatures or m-signatures,which eliminates the need for economic operators to go to the contracting authorities to purchase thetender document.

Procurement Procedures on the EPPPTender Search Mechanisms:• Real and legal persons who wish to participate in tenders may search for tender notices by settingcertain criteria (sector, province, remaining period of tender date and tender type). • Also they can be notified instantly via e-mail, about tender opportunities they may be interested in. • Citizens can also search for tenders by three different ways according to their needs: Fast Search, Detailed Search and Sectoral Search.They can see tender notices and contract award information of the tender.

Procurement Procedures on the EPPP

Tender At a Single Glance:• Every detail of all public tenders carried out within the scope of Public Procurement Law, such as contract notice, contract document, information about the contracting authority, contract award notice, complaints by dissatisfied tenderers, black list confirmation, contract price and contract lots, can be seen in “Tender at a Single Glance” webpage within the EPPP.

• Thanks to this, public supervision is ensured in the public procurement system.

Procurement Procedures on the EPPP

Tender Evaluation Records:• Tender evaluation records are preparedby the contracting authorities by using EPPP.

Procurement Procedures on the EPPP

• For “Procurement of medical devices”, which has been identified as a pilot sector, all procurement procedures including the electronic submission and electronic evaluation stages, can be done in paperless electronic environment.

Electronic submission of tenders in the pilot sector:

Procurement Procedures on the EPPPInquiries from related systems:

• Contracting authorities can query tax liability, balance sheet and income statement information of economic operators over the Revenue Administration’s system and social security premium debt information over Social Security Institution’s system.

Electronic Public Procurement Platform

Integration of EPPP with Other Institutions:

Procurement Procedures on the EPPPBlacklist Confirmation and PPA Decisions:Contracting Authorities and citizens Can access to the black list of economic operators and decisions taken by the Public Procurement Board upon complaint applications.

Procurement Procedures on the EPPPSubmission of contract award information:• Contract award notices are

prepared, published and can be

viewed by using EPPP.• All notifications can be sent to economic operators through EPPP.

Procurement Procedures on the EPPPContract Management• Applications in EPPP were put intouse regarding contract management issues, such as additional works or services, price adjustment (escalation),termination of contract, issuing certificates of satisfactory performance of the contract in order to collect data on signed public contracts, to do analysis on a sound basis and to digitize contract management process.

Benefits (Realized)-1Contracting AuthoritiesSavings due to printing of tender documents (yearly)(350.000 tender documents, avg. 50 pages, cost per page0,2 TL)

3,5 million TL(1,5 million €)

Time savings (yearly)(11 person/day, daily cost 50TL, 150.000 tenders annually)

82,5 million TL(37 million €)

Contract Value Savings (Contract Value/Estimated Cost Ratio decreased from 81% to 74%, average number of tenders submitted increased from 3.3 to 5.6)

Approximately 1,3 billion TL annually

TOTAL REALIZED SAVINGS (yearly)1,4 billion TL

(600 million €)

Benefits (Realized)-2Economic OperatorsSavings due to tender document acquisition (yearly)(350.000 tender documents* document price)

54 million TL(24 million €)

Transportation savings (yearly)(350.000 tender documents* 10 TL/tender document)

3,5 million TL(1,5 million €)

Time Savings (yearly)(350.000 tender documents* 1 man/day*35 TL daily)

12,2 million TL(5,5 million €)

TOTAL REALIZED SAVINGS (yearly)69,7 million TL

(31 million €)

Business Intelligence• Business intelligence within the EPPP was put into use in 2013 and instantaneous access to a

huge amount of data was achieved. • Objectives of the business intelligence are as follows:• To gather statistical data about public procurements for the analysis of business processes,• To standardize analysis of public procurement data and development of public procurement

reports,• To retrieve statistical data faster, instantly and up-to-date,• To provide procurement data to the other units of PPA in a more efficient way, • To provide statistical information within the scope of «The Right to Information Law No. 4982»

to the applicants,• To provide information about procurements to contracting entities, economic operators and

public in a visually rich and dynamic way,• To improve public procurement processes by employing data mining,

Business Intelligence

Future Developments• E-Procurement in goods and call-off stages of framework agreements

• E-catalogs and digitalization of procurement items

• E-Contract Management

• E-Auctions

Future Developments• Certification/Registration Systems

• Secondary Legislation• Certification Units• Audit Mechanisms

• Other Integrations (such as judicial records)

• Business Continuity Center/Disaster Recovery Center

Integrated Appeal, Review and Board Project

• Appeals will be submitted over EPPP with the e-signatures of the related party.

• All necessary information related with a complaint will be retrieved electronically where possible, other documents will be scanned.

• The result of review by public procurement experts will be digitally signed by e-signatures and presented to the Board.

• Board Agenda will be prepared electronically.• Board Members will be able to access to the documents

electronically.• Board Members will sign the decisions by their e-signatures.• The notification of the decision of the Board will be sent

automatically and electronically.