4 th South Asia Regional Public Procurement Conference Kandy-2017 e-GP Business Model By Md. Mosharraf Hussain System Analyst, CPTU,IMED Ministry of Planning Bangladesh
Electronic Government Procurement (e-GP) in countries --- 2
Agenda e-GP Business Model Value Proposition Revenue Model Cost Centers Case Study
Core strategic questions Target market and how can it be reached? Government Agencies & Tenderers; Through Better Service Delivery. What is the scope of the entire offerings? Simple, secure, Reliable & speedy. What value promise leads clients to choose e-GP? Paperless, Easy, Error free, Hassle free, Open competition. What factors ensure profitability?
e-GP Business Model Offer a unique and relevant value promise Aligned with market needs Capable of generating attractive profits Establish new growth platforms Functions Expenses Revenue
e-GP: Functions Procurement Integration with other e-Marketplace system Planning ( Tax, Vat, etc.) Invitation of Bid Online Payments Bid Submission Demand Forecasting Analytics for Fraud Bid Evaluation detection e-Contracting Contract Signing End to End Online Contract Management Process ( Order to Pay )
Revenue Model Training Registration Fees from Document Support winning bidder services price Value Added Publication Services
Registration and renewal fees Registration fees for tenderers. Renewal fees will be charged annually to the tenderers.
Selling of Tender document A minimal fee on bidding document can be charged to the bidder to access the document.
Training and capacity building Capacity building of Procuring Entity Capacity building of T enderers Training on Public Procurement Acts, Rules, Guidelines etc.
Value added services SMS / Email alert on different occasion as per requirement of the tenderer. Helpdesk services. Online payment.
Tender Publication fee Charge a fee to Procuring entities for tender publication in the portal. Fees from winning tenderer Charge a fee from the winning bidder based on the contract value.
Support services Helpdesk Standard Tender Document Preparation Which will ensure the clients satisfaction to boost up the revenue stream.
Cost Centers Infrastructure Skilled manpower Logistics Services
Case Study Electronic Government Procurement (e-GP) System of Bangladesh . www.eprocure.gov.bd In operation since 2 June 2011
e-GP Status (15 Feb 2017) Procuring Agencies 1001 Procuring Entity 3732 T enderer 28,663 T otal user 50,025 T otal T ender Value 9,145 M$ T otal T ender 82,081 T otal Bank 44 Competition 8.5 Earning from e-GP 16.28 M$
e-GP Offerings e-T endering (e-Advertisement, e-Lodgment, e- Evaluation, e-Contract award etc.) e-Contract Management System (CMS) e-Performance Monitoring Information System (e-PMIS) e-GP Earnings Registration Fees Renewal Fees Tender document fees
Year wise earnings from Registration and Renewal fees 800,000 697,713 697,564 700,000 590,725 600,000 USD 547,100 500,000 400,000 300,000 200,000 100,000 55,825 19,088 813 - 2010 - 2011 - 2012 - 2013 - 2014 - 2015 - Jul - 2011 2012 2013 2014 2015 2016 Dec 16 T otal Revenue = 2.61 M USD
Year wise earnings from Document fees 5,000,000 4,523,026 4,230,391 4,500,000 4,000,000 USD 3,416,625 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,091,638 1,000,000 500,000 30,691 1,513 - 2011 - 2012 - 2013 - 2014 - 2015 - Jul-Dec 2012 2013 2014 2015 2016 16 T otal Revenue = 13.29 M USD
e-GP: Expenses E-GP Platform cost Data centre IT equipment cost DC Land & Building cost Non IT cost 4.37 M USD
e-GP: Expenses AMC of e-GP Management Infrastructure cost Helpdesk cost Personnel cost Internet cost 6.25 M USD
e-GP: Self Sustainable 18,000,000 16,000,000 15,902,710 14,000,000 USD 12,000,000 10,000,000 10,974,755 8,000,000 6,000,000 4,000,000 2,000,000 - Income (Cumulative) Expenses (Cumulative)
Conclusion e-GP System can be: Self sustainable Profitable Free service by Government
Transparency 100 % of contract award published 100 % of tender notice published Efficiency 99.5 % contract award decision made within initial tender validity Competitiveness Average Number of responsive tender is 10.37 Average Number of tender submission is 11.03
e-GP: Simple Speedy Secure
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