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