E-Procurement Linkage System Operations 2013. 4. Public Procurement Service

E-Procurement Linkage SystemOperationsE-Procurement Linkage SystemOperations

2013. 4. 2013. 4.

Public Procurement Service

PPS and KONEPSLinkage

PPS and KONEPSLinkage

Current Status of Linkages

Current Status of Linkages

Linkage MechanicsLinkage Mechanics

Suggestions Related to Linkage

Suggestions Related to Linkage

PPS and KONEPS LinkagePPS and KONEPS Linkage

4

1. PPS and KONEPS Linkage

Mgmt. for Mgmt. for PropertyProperty

Mgmt. for Mgmt. for GoodsGoods

Contract Contract ServiceService

Construction Construction ServiceService

StockpileStockpile

5

TotalTotalProcurementProcurement

(101 billion USD)(101 billion USD)

35% 35% of Total Korea’s of Total Korea’s public procurement market public procurement market

As of As of 20122012 PPSPPS

(35 billon USD)(35 billon USD)


6

PPSPPS


20%20% open to open to international companiesinternational companies

AsAs ofof 20122012

Market openingMarket opening



7

As of As of 20122012

6%6% of Total of Total Market OpeningMarket Opening VolumeVolumeForeign Foreign

supplierssuppliers

(403 million USD)(403 million USD)

Market openingMarket opening



8

• 2002: Launched• 2003: System upgrade• 2007: Expands standard

linkage• 2009: Introduces mobile

bidding• 2013: Next-generation

KONEPS

Major Milestones Overseas Cases

• 2008: Vietnam• 2009: Costa Rica• 2010: Mongolia• 2012: Tunisia

Tunisia

Uzbekistan

Mongolia

Vietnam

Indonesia Costa Rica

Peru

Launched

Being Ready


9

ProcessStandardization

SingleWindow

One-stopService


10

All processes are digitalized from supplier registration to payment

One-stop service is provided by using the linkage with 144 external systems

OnlineTransaction

Certificate Authorities

Other BiddingSystems

PG System(KFTC)

RelatedAssociations

Certificate Authorities

Financial and Accounting Systems

G4C System

AuthenticationCertificate

IntegratedNotice

Commission forBid Participation

SupplierData

AuthenticationCertificate

Contract information

Certificate forTax Payment

G4C System Public Org SurelyCompany

EncryptionKey IssuanceSystem

SurelyCompany

Financial and Accounting Systems

Banks

SupplierRegistration

IntegratedNotice

BidBond

EncryptionTime Stamp

Contract / Performance/Payment Bond

Electronic Fund Transfer

Supplier RegistrationSupplier Registration

InvitationFor BidInvitationFor Bid

Bid Opening/EvaluationBid Opening/Evaluation ContractingContractingBiddingBidding

Delivery/ Inspection/Acceptance

Delivery/ Inspection/Acceptance

PaymentPayment


Current Status of LinkagesCurrent Status of Linkages

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2. Current Status of Linkages

The KONEPS can guarantee the precision of e-procurement transactions and seamless processing through linkages

Info linkage Feature linkage

Procurement info linkage Basic info linkage

Procurement task processing support

Procurement info sharing

• Supplier credit info

• Past performance

• Bond/ guarantees

• Tax info

• Product certification info

• Purchase request info

• Bidding info

• Contract info

• Supplier registration info

• Public authentication

• Electronic settlement

• Electronic payment

• Quality Certification info

• Product info

• Catalog info

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2.1 Procurement Processing Support: e-Bidding(1/2)

KONEPSKONEPS

Credit RatingAgencies

Product QualityCertificateAuthorities

Associationsby Industry

PublicOrg

LinkageDB

LinkageDB

Administrative measure, Unjust

supplier Info

Credit level,Certificate Info etc.

License,Human resource

Registration

BidSubmission

EligibilityTest

XML-SOAP

Credit Rating

CreditInfo

LicenseInfo.

CertificateInfo

Humanresource

Info

Pre-performed

result

Administrative

measure

14


115 types of information gathered from 60 organizations in four groups are linked for the purpose of providing bidding information

2.1 Procurement Processing Support: e-Bidding(2/2)

Linkage Type Linked Entities Linked Info Comment

Credit Rating Agencies

10 6 types Credit info, debt info, etc.

Product Quality Certificate

Organization10 9 New Excellent Technology,

Patent, KS Mark, etc.


11 10Financial info, projects undertaken, key technical personnel, etc.

Other PublicEntities

29 90Info on administrative measures, unpaid taxes, temporary or permanent closure, etc.

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Make sure all conditions have been satisfied before signing the contract so that everything can be done with high confidence and precision

2.2 Procurement Processing Support: e-Contract, e-Payment (1/2)

Commercialbanks

GuaranteeCompany

NTS/MOSPA

KFTCBank

accountinfo

Tax payment certificate

Stamptax

paymentinfo

Taxinvoices

Contractdeposits

Paymentdeposits

Bondpurchases

Networkloans

LinkageDB

LinkageDB

Guarantees, bonds,

stamp taxes,network loans

Accounts, tax payments, guarantees

Contractsigning

Payment

KONEPSKONEPS Financial &Accounting

System

Financial &Accounting

System

Nationalfinance

Localfinance

Educationalfinance

Otherfinances

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Linking 385 types of information in 38 organization in four groups for information linkage in contracts and payments

2.2 Procurement Processing Support: e-Contract, e-Payment(2/2)

Linkage Type Linked Entities Linked Info Comment

CommercialBank

17 13 types Kookmin Bank, etc.

SuretyCompany

19 18 Seoul Guarantee InsuranceCo., etc.

Public agency 2 5 National tax-related info

FinancialAccounting

System3 74 National finance-related info

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In the case of shared services that can be used for general purpose, more effective, reliable service execution is possible through professional services


2.3 Procurement Processing Support – Related Feature Linkage (1/2)

Performs security authentication on log-in & sent/received documents

Security Authentication

ElectronicApproval

ElectronicPayment

Public authentication

module

Electronic approval module

PG module

Performs electronicapproval when processing

approval in stages

Performs electronicpayment when making

payments

KONEPSKONEPS

Authenti-cation infoAuthenti-

cation info

Approvalinfo

Approvalinfo

Paymentinfo

Paymentinfo

Public authentication

PublicInstitutions

KFTC

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By using link modules provided by each institution, service linkage is made in real time whenever needed


2.3 Procurement Processing Support - Related Feature Linkage (2/2)

Purpose Linked Entities

Public Authentication

Public authentication organization CA/RA/TSA systems

Electronic Approval

MOSPA “On-Nara” System

ElectronicPayment

KFTC e-Payment System

Linked InfoComment

Public authentication certificate management; electronic signatureprocessing

E-approval institution management; e-approved document processing

Payment account management; payment transfer processing

6 including Korea Info Certificate Authority

National institution standards

Limited linkage

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Basic procurement information is collected from public entities and the comprehensive information gathered can be shared widely among users of the KONEPS


2-4. Sharing of Procurement Information (1/2)

KONEPS

Bidding Notice

Self-contract

Contract Request

Public Entities Linked system

National Finance System

Self-bidding System

Public Entity System

Public Entities

Private Suppliers

Associations by Industry

Supplier status+Supplier

performance

Request Status+Contract Status

Bidding Notice+

Bid opening

Procurement Request

E-bidding

E-contract

Inspection/supervision

Payment

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The shared information provided by the KONEPS is in XML and data formats; this is then reprocessed into other usable formats for linked systems


2-4. Sharing of Procurement Information (2/2)

Product InfoCatalog Info

CertificationInfo

……

ShoppingMall System

Catalog System

Screening system to test contract fulfillment abilities

KONEPSProduct Certification Authorities

Linked system

Public Entities

3 Finance Systems


NEP/NET

Recycled Produce

Good Software

Patent

Utility Model

KS Mark

LinkageMechanicsLinkageMechanics

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Standard LinkageSystem

Registration Info

Registration Info

Bid, C

ontract InfoB

id, Contract Info

Cre

dit I

nfo

Cre

dit I

nfo

guar

ante

e

guar

ante

e

Bid, Contra

ct Info

Bid, Contra

ct Info

Pre

-per

form

ed

resu

ltP

re-p

erfo

rmed

re

sult

Con

trac

t In

foC

ontr

act

Info

Cer

tifie

d In

foC

ertif

ied

Info

Tax calculation sheet,

Billing statement,

Order sheet

Tax calculation sheet,

Billing statement,

Order sheet

Housing bond,

development bond,

network Loan

Housing bond,

development bond,

network Loan

Contract,

Invitation tender

Catalog Info.

Contract,

Invitation tender

Catalog Info.

Quality Certified InfoQuality Certified Info

Catalog InfoCatalog Info

3. Linkage Mechanics

Government/Public Org

SuretyCompany

Supplier

Product QualityCertificate Authorities

Bank

OtherBidding System

Credit CertificateAuthorities

RelatedAssociations

CertificateAuthorities

Document Send/Receive TypeUsing the standard linkage solution of KONEPS, procurement information is sent and received in real time or in batches in document format

Inquiry Service TypeOnly the information requested by an entity is provided in XML format in real time

RelayTypeDocument relay is mediated through KONEPS between procurement info company and supplier

2020 99

2828

1919

1212 4

2626

1010

1515

23

Web ServiceArchitecture

Publ

ish

Find

Bind

ServiceProvider

Publish

Find

BindService

Provider

ServiceBroker

ServiceRequester

Web Service Architecture of PPS

Linked InstitutionSystem

ServiceBroker

ServiceRequester

Web Service

Info Related to e-Procurement

G2B Registry

ebRIM/ebRS

UDDI

Institutional System

ASP-using Institutions

Info-using InstitutionsRepository

KONEPS has the structure of sending and receiving linked information through web service


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Messaging system

호출

호출

Document transfer

Webservice system

REMOTE SYSTEM

APP execute module

Security processing

Packaging

processingHeader

Schema validation check

감시

call

Interface system

Logging module

DBtoXML

XMLtoDB

Communication processing

Monitoring module

Schema validation check module

Header processing module

Security processing module

Packaging module

Error log module

Logging module (file)

Error handling

Remote individual system

XML Doc store

XML Doc creation

KONEPS CONNECTION SYSTEM

Sending XML storage

Receivin XML storage

XML

Service log

Supplier Info

Integrated contract Info

Webservice log

Services

Service binding

Service link

Error log module

(file)

Error handling

Logging module

Logging file directory

APP execute module

Schema validation check module

User check module

Security processing module

Header processing module

Packaging module

Communication processing

’

Packaging

Header processing

Security

User check

Schema validation check

Document receiving

processing

KONEPS provides the API solution for standardize linkage based on web service


SuggestionsRelated to LinkageSuggestionsRelated to Linkage

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• Partnership terms must be explicitly specified through set of rules or MOU

• In particular, credit info and supplier performance must be updated with latest data

• For PPS, maintain partnership through national contract law and MOU

Maintaining intimate partnership system with linked institutions

Use of single standard under common protocol

Strict insistence on security guarantee appropriate for different sets of information

• To maintain a huge amount of info in a consistent manner,it is critical to follow standards

• This is more important for info used by many institutions

• For PPS, linkage is maintained through compliance of standards like XML and SOAP

• Depending on type of linked info, security guarantee must be made in varying degrees

• In particular, containing personal info or sensitive corporate info calls for special attention

• For PPS, public authentication-based encryption and electronic signature be used

4. Suggestions Related to Linkage

4-1. Matters to Note

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4-2. Way Forward

• By linking bidding notices of many countries,one can raise opportunity of participating high-quality suppliers

• Can improve reliability of bidding info through the use of trustful eligibility info

• To encourage international procurement, standardization of internationalprocurement process and information items is called for

• After standardizing the basic process and info items,the same can be applied to individual processes and info items

• Overlapping procurement tasks, use of a common system may be possible

• Using a common system can guarantee high reliability and improved efficiency

Expansion of international procurement information

Standardization of international procurement process and info items

Use of commone-procurement system for international transactions

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If there is a system which owns valuable information for procurement

Just Link

Provide Service andAcquire Information

If there is no system and

information go by the wayside manually


Documents

E-Procurement Linkage System Operations 2013. 4. Public Procurement Service