ChileCompra Management Report 2007 Assessment
Transcription
ChileCompra Management Report 2007 Assessment
ChileCompra Management Report 2007 Assessment Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 1 ChileCompra Management Report 2007 Assessment Table of Contents I. Presentation ...................................................................................... 4 a. Letter from the Director ...................................................................... 4 b. Executive Summary ............................................................................ 5 II. Public Procurement Market Operation ...................................................... 12 a. Record Amount of Trade Conducted on the Public Market during 2007 .............. 12 b. Most Business Opportunities Created Outside the Metropolitan Region .............. 15 c. A Strong Increase in Purchase Orders Emitted by Public Agencies during 2007 ..... 17 d. More Suppliers on the Public Market throughout the Country ......................... 18 e. Growing Participation of Suppliers in the Public Market ................................ 19 f. Significant Increase in Website Visitors during 2007 ..................................... 20 III. Main Progress in 2007........................................................................... 23 a. Greater Public Market Transparency ....................................................... 23 b. Growth of the ChileCompra Express Market .............................................. 26 c. Wider Public Market Access for Micro and Small Businesses ............................ 29 d. High Degree of User Satisfaction and Greater Efficiency ............................... 33 e. ChileCompra’s New Internet Platform ..................................................... 34 g. New Working Rules and Further Knowledge Regarding the Public Marketplace ..... 36 h. Training and Accreditation Activities for National Users................................ 39 i. ChileCompra Continues Advancing as an International Point of Reference .......... 43 j. Awards and Recognition ...................................................................... 44 Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 2 ChileCompra Management Report 2007 Assessment Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 3 ChileCompra Management Report 2007 Assessment I. Presentation a. Letter from the Director This was the year of ChileCompra Express, the e-catalogue procurement system. Trade conducted using this virtual store rose from USD 200 million in 2006 to almost USD 450 million in 2007. Behind those impressive figures, a long list of achievements supports our decision to introduce this e-commerce tool in Chile. For example, almost 100 tendering processes have established Framework Agreements offering public agencies over 170,000 products and services, provided by hundreds of suppliers from all across the country. Each one of these agreements meets the highest technical and commercial standards, which is very difficult for each public agency to ensure independently. Each one of these framework agreements has replaced an average of 2,800 tendering processes, significantly cutting processing costs and taking advantage of economies of scale. Today, our framework agreement and e-catalogue purchasing systems are used by over 800 public agencies, enabling us to actively support their work. This purchasing mode has allowed ChileCompra Express users to buy new equipment for schools, assign emergency housing, offer private medical services for patients of the government’s AUGE health plan, and help public employees obtain health and life insurance, among other valuable uses. This e-commerce system has also generated many other benefits for citizens and businesses. ChileCompra Express, the country’s largest online store, demonstrated an intense, widespread level of activity during 2007, and shall no doubt continue to have a positive impact in the years to come. This year also brought a great deal of achievements in terms of training, technology, customer service, labeling, business directories, and regulation, among other services necessary to offer support for the USD $ 4.5 billion traded on the Public Market. Perhaps one of our most significant achievements has been the creation of entrepreneurial centers in 16 different cities throughout Chile. These centers have been especially designed to offer micro and small businesses a local service platform with better access to this new market. Finally, ChileCompra was re-designed during 2007, and a new plan was introduced: ChileCompra 2.0, which shall probably be announced during the first months of 2008. This plan shall inaugurate a new era for the ChileCompra system. After a first stage of reforms, modernization and opening of the Chilean public market, the services and information available on this market shall now include a greater amount of uses and, therefore, a greater number of expected benefits, significantly increasing the value of this market for our country. We are confident that this new stage shall be even more successful than the last. For this reason, we ask for your support and that of all those interested in making Chile a more transparent, modern and prosperous nation. Tomás Campero Fernández Director of the Public Procurement and Contracting Bureau Santiago, January 2008. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 4 ChileCompra Management Report 2007 Assessment b. Executive Summary Total Amount of Trade Conducted using the ChileCompra System increased by 29% During 2007, the total amount traded using the ChileCompra System was more than USD 4.45 billion, a 29% increase over 2006. The distribution of calls for tenders was highly concentrated during the last quarter of 2007, with 50% of all transactions occurring between the months of September and December: In order to implement this e-catalogue, the Procurement and Contracting Bureau’s advanced Content Factory created over 30,000 files for products included in the new agreements, and also updated approximately 10,000 files from pre-existing agreements. Significant Participation of Micro and Small Businesses in the Public Market Growth of ChileCompra Express in 2007 ChileCompra Express experienced significant growth during 2007, with over 285,400 purchase orders emitted and USD 445 million being traded—more than twice the amount traded using this purchasing mode during the previous year. Some of the main goods and services acquired through ChileCompra Express during 2007 include: health services, airline tickets, meal services, office supplies and printing supplies. During 2007, micro and small businesses conducted trade for over USD 1.5 billion through ChileCompra, maintaining the market share of 35% obtained by this sector during 2006. Suppliers Also, a total of 64,556 businesses placed bids in the different public tendering processes published on the ChileCompra website, of which 68.7% were micro-businesses, 22.0% were small businesses, 5.8% were mediumsized businesses and 3.4% were large businesses. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 5 ChileCompra Management Report 2007 Assessment Suppliers Of all participating businesses, 43,964 were awarded at least one contract during the year, of which 65.6% were micro-businesses, 23.8% were small businesses, 6.5% were medium-sized businesses and 4.2% were large businesses. , , , , 2007 Statistics Indicator Total Amount Traded 2007/06 Variation Unit 2007 Total 2006 Total USD 4,458,299,399 3,466,133,692 +28.6% Business Opportunities Published Through ChileCompra Nº 450,023 459,715 -2.1% Purchase Orders Emitted Nº 1,491,054 1,230,424 +21.2% 445,557,057 204,885,223 +163.9% 285,400 180,653 +58.0% Total Amount Traded Using ChileCompra Express (E-Catalogue) USD Purchase Orders Emitted Through ChileCompra Express (E-Catalogue) Nº Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 6 ChileCompra Management Report 2007 Assessment Jan 2007 Feb 2007 Mar 2007 Apr 2007 May 2007 Jun 2007 Jul 2007 Aug 2007 Sep 2007 Oct 2007 Nov 2007 Dec 2007 2007 Total Total Amount Traded Using ChileCompra System (USD) N° of Business Opportunities Purchase Orders Using ChileCompra System Total Amount Traded Using ChileCompra Express (USD) Purchase Orders Using ChileCompra Express 400,178,725 203,130,619 234,522,149 295,366,994 263,736,346 266,192,393 278,490,558 281,572,345 517,401,898 518,932,454 403,833,257 794,941,658 37,620 29,832 39,480 38,743 39,984 39,521 35,386 40,506 31,286 42,260 42,347 33,058 99,656 85,369 118,734 117,252 129,361 132,716 123,487 140,414 112,672 145,875 144,184 141,334 27,536,371 20,201,300 29,362,604 33,624,472 33,153,224 34,787,762 29,576,758 36,910,765 34,781,091 45,442,783 55,603,654 64,576,273 17,940 13,687 23,379 21,997 24,183 25,042 23,423 28,297 21,354 29,395 29,950 26,753 4,458,299,399 45,023 1,491,054 445,557,057 285,400 Consolidation of the Active Probity Platform Greater Access for Micro and Small Businesses In 2007, the challenge in terms of transparency was to promote probity and visibilize the purchasing and contracting processes of the different public agencies that participate in the public procurement system. As of December 2007, ChileCompra’s Access Program has created 16 Entrepreneurial Centers throughout the country, in the following cities and municipalities: Iquique, Antofagasta, La Serena, Coquimbo, Rancagua, Talca, Chillán, Talcahuano, Angol, Valdivia, Villarrica, Coyhaique, Punta Arenas and Santiago (Maipú, Peñalolén and Santiago Centro). These fully equipped centers provide free internet access, training, support and services designed for entrepreneurs to significantly improve their chances of doing business with public institutions. The Active Probity Platform was designed for this purpose, seeking to discourage and sanction any irregularities in the procurement processes carried out by public agencies using the www.chilecompra.cl website. A specialized complaint system has been implemented, including a Transparency Indicator Panel that allows agencies to adopt measures designed to deal with shortcomings in their purchasing processes and promptly respond to any complaints presented. This panel, up to now only for department heads and directors of public agencies, shall be made available to the general public during 2008. Also, in the framework of the Chile Emprende Contigo presidential commitment, acquired this year by President Michelle Bachelet, the Public Procurement Bureau has created a Scoring System for its users, which allows for feedback between procuring entities and suppliers, who may mutually evaluate each other regarding the tendering process in which they have both participated. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 7 ChileCompra Management Report 2007 Assessment This year ChileCompra also announced the creation of the Associability Platform, a nationwide project for the promotion of competitiveness of suppliers on the public market. This project shall allow businesses to engage in partnerships with other businesses in similar fields, in order to submit joint bids in calls for tenders published by public agencies on www.chilecompra.cl. 48,500 users participated in over 1,900 training activities throughout the country The Public Procurement Bureau offered significant training opportunities for both procuring entities and suppliers in the national public market, with more than 48,500 users participating in over 1,900 activities during 2007. These activities included diverse training events such as the “ChileCompra Week” in regions outside Santiago, with training for website use, thematic workshops, e-learning and diploma courses in supply management, as well as direct consultancies for government institutions regarding different supply issues. ChileCompra’s Recognition as an International Point of Reference The Public Procurement Bureau has been recognized internationally as one of the most successful models worldwide, which is why several countries have based the implementation of their own electronic public procurement platforms on our system. During 2007, ChileCompra had important collaborations with the following countries: Angola, South Africa, South Korea, Argentina, Brazil, Colombia, Costa Rica, Ecuador, El Salvador, Mexico, Panama, Peru, Paraguay, and the Dominican Republic. A number of important distinctions were also received, such as the Award for Excellence in Public Service (Organization of American States, June 2007); the ExcelGob Award for the Best Solution in Transparency of Public Services (OAS-GEALC Network, May 2007); and the 2006 Social Responsibility Award (Fundación ProHumana, April 2007), among others. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 8 ChileCompra Management Report 2007 Assessment c. Public Procurement and Contracting Bureau The Public Procurement and Contracting Bureau is a decentralized public service, dependent on the Ministry of Finance and supervised by the President of the Republic. It was created by the Public Procurement Law and began formal operation on August 29, 2003. Institutional Mission To develop policies and initiatives designed to create transparency and added value in the public procurement market, through technological tools and excellence management. 2007 Strategic Objectives 1) Transparency. To promote probity and visibilize the purchasing and contracting processes of the public agencies participating in the public procurement system. 2) Access to the Public Procurement Market. To facilitate competitive participation in the Chilean public procurement and contracting system for all businesses and suppliers interested in doing business with the State. 3) Efficiency. To add value to the process of public procurement. 4) Sustainability. To direct the public procurement system and its evolution. Financial Resources In 2007, a budget of 6.32 billion Chilean pesos was approved for the Public Procurement and Contracting Bureau to perform its functions. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 9 ChileCompra Management Report 2007 Assessment “Very few countries —and I say this with great pride because it has been mentioned to me many times while traveling abroad— have been able to institutionalize a public procurement system as modern, transparent and efficient as ChileCompra”. “The ChileCompra system is an example of how our country is making progress in transparency, probity, accountability, and all those variables that help build a better, healthier, more transparent, more decent and more developed nation.” Andrés Velasco, Minister of Finance Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 10 ChileCompra Management Report 2007 Assessment Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 11 ChileCompra Management Report 2007 Assessment II. Public Procurement Market Operation a. Record Amount of Trade Conducted on the Public Market during 2007 A record amount of trade was conducted using the ChileCompra system during 2007, with total purchases of over USD 4.4 billion. This increase of 29% over 2006 proves how trade has continued to grow since the system was first implemented in 2003. If we consider the global projections for the volume of e-commerce during 2007 (USD 12 billion, according to Santiago Chamber of Commerce estimates), the public procurement market represents one of the sector’s main agents, with approximately 37% of the total trade conducted electronically within the national economy. , , , , , , , , , The distribution of calls for tenders was highly concentrated in the last quarter of 2007, with 50% of all transactions occurring between the months of September and December: Although this distribution is similar to that registered during the previous year, the concentration has varied slightly, with a significant increase in transactions beginning in September 2007, whereas in 2006 the strongest increase came in November and December. Construction and Engineering Services and Medical Supplies are among the most important areas of trade during 2007 During 2007, tendering processes executed by public agencies were mainly concentrated in the following areas: Construction and Maintenance Services (14%), Engineering, Social Sciences and IT Services (12%), Medications and Pharmaceutical Products (7%), Medical Equipment, Accessories and Supplies (7%), Travel and Lodging (7%), Professional Services (5%), Food and Beverages (5%), and Supplies and Components for Structures, Works and Construction (4%). Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 12 ChileCompra Management Report 2007 Assessment Great participation of micro and small businesses in the Public Market Micro and small businesses represented 35% of the USD 4.4 billion traded on the public market during 2007, maintaining the market share achieved by this sector during 2006. On Other hand, medium-sized business represented 17% of all trade, white large business held a 48% share of this market. Supplier Health Sector and Central Government hold the greatest share of purchases An examination of trade figures by buying sector reveals that the Health Sector and the Central Government concentrate the greatest percentage of purchases made in 2007, with 33% and 26%, respectively, followed by the Municipalities (19%), Public Works (15%) and the Armed Forces (7%). The participation of micro and small businesses in the public market has been growing in recent years. It is also significantly higher when compared to the participation rates in the rest of the Chilean economy (according to 2005 data). Micro and small businesses did business for over USD 1.5 billion during 2007, quickly becoming a preponderant sector, able to cover the demand for goods and services of diverse public agencies across the country. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 13 ChileCompra Management Report 2007 Assessment Chile’s regions increase their demand for goods and services During 2007, 43.4% of all trade conducted using the ChileCompra system corresponded to calls for tenders published by regional public agencies, while 56.6% were made by public agencies from the Metropolitan Region. Thus, regional demand increased by more than 6 percentage points over 2006, when regional trade only accounted for 37.1% of the total. Important participation of local supplierss in sales at the national level An analysis of public purchases made by each region during 2007 reveals that local suppliers account for an important share of the purchases in their regions, both in the percentage of purchase orders and the percentage of total trade. On the other hand, 68.1% of all public procurement sales were made by suppliers from the Metropolitan Region, while only 31.9% was by regional suppliers, figures similar to those registered in this market during the previous year. Meanwhile, the majority of procuring entities and suppliers at the regional level came from the following regions: Bío-Bío, Valparaíso, Los Lagos and La Araucanía. While the Metropolitan Region maintains a high percentage of intra-regional purchases (around 80% of all trade), other regions strongly privilege suppliers from their own region, such as Aysén (63.8%), Bío-Bío (54.3%) and Maule (52.2%). Meanwhile, the regions that buy from local suppliers the least are Arica and Parinacota (20.8%) and Magallanes (16.7%), which is apparently strongly influenced by their extremely isolated geographic location. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 14 ChileCompra Management Report 2007 Assessment b. Most Business Opportunities Created Outside the Metropolitan Region Other regions that represented a large share of business opportunities published were: Bío-Bío (13.5%), Valparaíso (9.9%) and La Araucanía (6.5%). During 2007, 450,023 business opportunities were published on ChileCompra, a figure similar to the previous year. , , , , , , , , , , The amount of calls for tenders remained relatively constant throughout the year, with slight decreases during the months of February, September and December, mainly due to the high amount of vacations and holidays during those months. Of all the business opportunities published, only 32% came from the Metropolitan Region, while 68% came from other regions. These figures are similar to those registered during 2006 and reveal a great decentralization of the tendering processes carried out on the public market. The most in-demand areas, measured as a percentage of all product lines demanded by public agencies, were the following: printing and writing paper (2.3%), printing, fax and photocopy supplies (2.1%), printing services (1.6%), cleaning and disinfection solutions (1.5%), vegetables (1.4%), publications (1.3%), and writing instruments (1.3%). Municipalities are a main source of business opportunities on the public market Of all publications registered during 2007, 44% were made by municipalities, followed by the Health Sector (23%) and the Central Government (18%). Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 15 ChileCompra Management Report 2007 Assessment “With ChileCompra, suppliers gain access to a larger marketplace, something which was previously very difficult for people outside the Metropolitan Region, who were limited to selling only in their own geographic area”. Pedro Corona, President of the National Chamber of Commerce Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 16 ChileCompra Management Report 2007 Assessment c. A Strong Increase in Purchase Orders Emitted by Public Agencies during 2007 During 2007, public agencies using the ChileCompra system emitted a of 1,491,054 purchase orders, a 21.2% increase over 2006. On the other hand, 62% of all purchase orders were received by suppliers from the Metropolitan Region and 38% by suppliers from the rest of the country, which maintained the distribution registered in 2006. Suppliers The number of monthly purchase orders increased as the year went by, reaching an average of 145,000 towards the end of 2007. An important participation of micro and small businesses according to purchase orders received At the regional level, suppliers from the regions of Bío-Bío, Valparaíso, and La Araucanía had the greatest participation, with 8.8%, 6.0% and 4.0% of all purchase orders emitted during the year. Supplier Of all the purchase orders emitted by public agencies during 2007, 43% were received by micro and small businesses, 14% by medium-sized businesses and 43% by large businesses, a distribution similar to that registered the previous year. Supplier The Health Sector and the Municipalities emit the greatest number of purchase orders The Health Sector and the Municipalities produced over 60% of the purchase orders emitted during the year, followed by the Central Government (23%), Armed Forces (12%) and Public Works (3%). Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 17 ChileCompra Management Report 2007 Assessment d. More Suppliers on the Public Market throughout the Country In 2007, the number of suppliers registered in ChileCompra increased by 20.5% over the previous year, with a total of 270,031 suppliers to date. Suppliers Meanwhile, 55% of all purchase orders emitted came from regional public agencies and 45% from public agencies in the Metropolitan Region. , (Public Entities , , , , , Also, the number of regional suppliers has greatly increased during recent years, currently representing 61.4% of all registered suppliers. At the regional level, the greatest number of purchase orders was emitted by the regions of Valparaíso (11.1%), Bío-Bío (10.9%), and La Araucanía (5.3%). Meanwhile, the number of users registered with ChileProveedores (the official registry of State suppliers) also increased during 2007, with over 26,000 total registered suppliers throughout the country. Suppliers Public Entities) , , , Of all currently registered suppliers, approximately 53% correspond to suppliers from the Metropolitan Region and 47% to those from all other regions. This registry, created in early 2006, allows all the relevant information for each supplier to be stored digitally online, Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 18 ChileCompra Management Report 2007 Assessment providing the necessary accreditation for conducting business with the State. With this system, processing time and document duplication is significantly reduced for suppliers, while procuring entities are ensured that all suppliers comply with the requisites for doing business with the State, established under the current legislation. e. Growing Participation of State Suppliers in the Public Market In 2007, the number of suppliers active on the public market (those that have placed bids or received purchase orders in the last 12 months) rose to 79,947, revealing their growing participation in this market. Of all bidding suppliers, 35% were from the Metropolitan Region and 65% from the rest of the country. Of these, most were concentrated in the regions of Bío-Bío (13.0%), Valparaíso (8.5%), and La Araucanía (6.8%). Suppliers Suppliers , , , , Meanwhile, during this same period 64,556 different suppliers participated in at least one public tendering process, of which more than 43,964 were eventually able to do business with the State. However, only 33% of those awarded contracts corresponded to suppliers from the Metropolitan Region, while 67% were suppliers from other regions, and, similarly to the former point, the regions with the greatest participation were Bío-Bío (13.4%), Valparaíso (8.4%), and Los Lagos (7.1%). The level of global effectiveness (total number of suppliers awarded contracts / total number of bidding suppliers) was on average 71.1% during 2007; that is, 7 out of 10 suppliers who placed bids were able to do business with the State. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 19 ChileCompra Management Report 2007 Assessment Suppliers The situation is similar among businesses that were awarded contracts during this year, of which 65.6% were micro-businesses, 23.8% were small businesses, and medium and large businesses were 6.5% and 4.2%, respectively. f. Significant Increase in Website Visitors during 2007 At the national level, the most effective regions were Atacama (75.5%), Magallanes (74.7%), Arica and Parinacota (74.6%) and Los Ríos (74.3%), while suppliers from the Metropolitan Region were less effective, reaching only 63.8%. Micro-businesses have the greatest participation rate as suppliers on the public market Of all businesses placing bids during 2007, 68.7% were micro-businesses, followed by small businesses with 22.0%. Suppliers In 2007, the www.chilecompra.cl platform registered an average of more than 1.3 million monthly visits, making it one of the most active Chilean e-commerce websites. Also, during 2007 the website registered a monthly average of over 460,000 unique visitors, of which 67% visited the site only once during the month, while 33% visited it more than once during the same period of time. Number of Visits to www.chilecompra.cl 2004‐2007 2007 2006 2005 2004 0 500,000 Average Visitors Per Month 1,000,000 1,500,000 Average Visits Per Month contracts Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 20 ChileCompra Management Report 2007 Assessment “ChileCompra offers equal opportunities for all suppliers to gain access to this market, so that not only businesses of any size, but especially businesses from other regions, have the same opportunities as those in Santiago. This new playing field makes the game fairer for everyone, because it reduces information inequalities.” María Olivia Recart, Subsecretary of Finance Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 21 ChileCompra Management Report 2007 Assessment Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 22 ChileCompra Management Report 2007 Assessment III. Main Progress in 2007 a. Greater Public Market Transparency The challenge in terms of transparency, as defined in the Procurement Bureau’s 2007 Strategic Plan, was to promote probity and visibilize the purchasing and contracting processes of the different public agencies that use the public procurement system. The idea was to advance towards a new stage in the procurement legislation, with a greater emphasis on rigorous, straightforward processes and the implementation of a new framework for the contracting of services and other specific areas, as well as accreditation of the competencies of public agencies involved in the procurement process. Some of the main initiatives in this field, as defined in the 2007 Plan, include: - - The consolidation of the Active Probity Platform, with the objective of discouraging and sanctioning any irregularities in the purchasing and contracting processes carried out by public agencies on the website and which might have a negative effect on their probity. This is why a specialized complaint system has been set up. In 2007, 5,493 complaints were received through the Active Probity Platform, of which 5,490 were forwarded directly to the public agencies and three are still being examined. A total of 2,100 have led to responses by the public agencies using this same platform. Transparency Indicator Panel - Among the actions for preventive, corrective and normative control, ChileCompra has defined standards, indicators and goals for the public sector in terms of transparency, efficiency, efficacy, supplier development and supply competencies. Each municipality, ministry or service has a control panel with information that allows them to visualize, evaluate and analyze the exact results of their supply management, in order to decide which decisions may help improve its performance. - This control panel —consisting of 17 indicators— allows the director of a public agency to adopt measures to solve any type of problem. This is made possible because, along with establishing which parameters are not being met, the panel also helps understand why they are not being met. Previously accessible only by the heads of departments and directors of public agencies, the Transparency Indicator Panel shall be made available to all Chilean citizens during 2008, so that anybody may observe how institutions are behaving in this sense. The system shall even compile rankings for each indicator among the more than 900 institutions that use ChileCompra. Some of the activities carried out in this field include: the implementation of the complaint management system; the optimization of the auditing function; oneon-one surveys applied to suppliers (qualifications); further management of information arising from failures, complaints and surveys; and optimization of direct and permanent assistance for public agencies. At the same time, since August 2007, the Public Procurement Bureau has held meetings with over 120 top directors of Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 23 ChileCompra Management Report 2007 Assessment public agencies, ministries, hospitals, municipalities, universities and the Armed Forces. The objective of these meetings has been to inform these public agencies of the new rules and instruments for transparency and public procurement management that are currently being carried out through the Active Probity Platform and www.chilecompra.cl. Development of competencies ChileCompra has implemented actions for the development of skills and competencies, in order to promote more transparent practices and behavior among procuring entities and suppliers. In this field, all public employees responsible for purchasing and contracting have undergone certification processes; each public agency has written its own purchasing procedure manual; more specific issues and newer, more practical and didactic learning formats (such as elearning, online video, lectures, workshops, quality circles, etc.) were added to the Training Programs for procuring entities and suppliers; prototype models were developed for the purchase of certain goods and services; among other activities. - Training regarding rules and best practices in public procurement. The Public Procurement Bureau has offered specialized Supply Management courses to deal with the new rules laid out by legislative changes to the Public Procurement Law, sharing examples of the best management practices. - Communication Actions, designed mainly to support the previous actions by spreading information and positioning an institutional message that promotes the concept of transparency. Over 80% of users surveyed approved the 2007 Accreditation Process During 2007, the user accreditation program was launched, evaluating both individuals and institutions in competencies designed to guarantee a healthy operation of the public procurement system. The objective of this initiative is to ensure solid performance of public tendering processes and advance towards a higher level of user development and user specialization, producing experts in Supply Management and thus improving the Chilean public procurement market. On January 8th and 9th, 2007, 1,800 public procurement users from all over the country completed the first phase of the supply management accreditation process. This process concluded with an accreditation level of 91% for purchasing managers and 80% for website operators. In January 2008, the system shall be perfected by adding user operation certification. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 24 ChileCompra Management Report 2007 Assessment “The contribution of this new public procurement system is essential to achieving greater levels of transparency and, of course, probity. Chile has made great strides forward in this sense, since one of the recommendations of the United Nations Convention Against Corruption, signed just recently in 2003, is precisely that each State adopt the measures necessary to establish appropriate public procurement systems, based on transparency, competition and objective criteria for making decisions that, among other things, help prevent corruption. Well, our public procurement system responds to this exact same idea.” Rafael Blanco, Executive Secretary of the Agenda for Government Probity, Transparency, State Modernization and the Quality of Politics Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 25 ChileCompra Management Report 2007 Assessment b. Growth of the ChileCompra Express Market During 2007, the ChileCompra Express ecatalogue was able to position itself within the public sector as an important tool for the purchase of frequently-used goods and supplies, which are previously uploaded as calls for tenders for framework agreements by the Procurement Bureau. From cleaning products to fuel supplies, public agencies began to use this online store, eventually doubling the number of transactions carried out in 2006. This mode now represents almost 20% of total transactions and 10% of the total amount of trade conducted using the ChileCompra system. Record number of transactions ChileCompra Express in 2007 using ChileCompra Express sales grew steadily during 2007, with a total amount of over USD 445 million being traded using this system, 285,400 purchase orders emitted and a record number of transactions. ChileCompra Express is an important tool for those in charge of supplies in the public sector, both facilitating the purchasing process and considerably diminishing the purchasing timeframe. In 2007, almost 800 public agencies actively used this purchase mode. Also, framework agreements have generated an average savings of 6% over other markets. The main procuring entities using these framework agreements in 2007 (based on the total amount of trade conducted in November 2007) were: JUNAEB, the Ministry of Education and Gendarmería (Chile’s Prison Bureau), while the Chilean Army also appears as a prominent procuring entity when observing the number of purchase orders emitted using this system during the same period. Some of the main goods and services purchased using ChileCompra Express during 2007 include: health services, airline tickets, food services, office supplies and printing supplies. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 26 ChileCompra Management Report 2007 Assessment Main ChileCompra Express Users 2007 - (By Amount Traded) 1 2 3 4 5 6 7 8 9 Amount Traded (USD) JUNAEB Ministry of Education Gendarmería de Chile (Prison Bureau) Carabineros de Chile (Police Force) Barros Luco Trudeau Hospital Salvador Hospital Policía de Investigaciones de Chile (Detective Police) San Borja Arriarán Clinical Hospital Chilean Army 10 Northern Metropolitan Health Service Note: Figures do not include sales tax (IVA) Main ChileCompra Express Users 2007 - (By Number of Purchase Orders) Number of Purchase Orders 21,881,353 20,497,863 15,333,897 12,985,556 11,657,576 10,010,575 9,826,322 9,219,015 8,864,125 2,655 12,643 20,324 6,609 1,056 680 2,675 528 11,889 8,819,186 571 Number of Purchase Orders Amount Traded (USD) Gendarmería de Chile (Prison Guards) Ministry of Education Chilean Army National Minors Service Chilean Navy Ministry of Health - MINSAL Carabineros de Chile (Police Force) national Forestry Corporation - CONAF Agricultural and Cattle Service 20,324 12,643 11,889 8,230 7,872 7,154 6,609 6,122 5,451 15,333,897 20,497,863 8,864,125 3,255,161 7,261,895 5,744,560 12,985,556 3,117,333 3,405,771 10 Valparaíso-San Antonio Health Service Note: Figures do not include sales tax (IVA) 3,097 4,526,433 1 2 3 4 5 6 7 8 9 In 2007, new items were added to the catalogue of goods and services, such as the evaluation and search for candidates to High Public Service positions, electronic signature and telecommunications services, and others. The Public Procurement Bureau has also signed important agreements to be executed with ChileCompra Express. In March, an agreement was reached with Intel for the commercialization the Classmate PC, an innovative and inexpensive laptop computer, within the public education system throughout the country, in order to facilitate student access to ICT. In June, a framework agreement with Microsoft will begin renewing software licenses, allowing the products that public agencies have already installed in their PCs, systems and equipment to be updated. This initiative helps fulfill Chile’s obligations and commitments regarding intellectual property rights. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 27 ChileCompra Management Report 2007 Assessment Advanced Content Factory creates more than 40,000 Product Files The Public Procurement and Contracting Bureau has implemented an advanced Content Factory in order to store and update the digital files of goods and services traded on the ChileCompra Express online store. More than 30,000 product files were created in 2007 under the new agreements, and around 10,000 files corresponding to preexisting agreements were updated. Each product file includes information about the product’s characteristics, description, attributes and framework agreement it belongs to, in order to offer procuring entities the most information possible, thereby facilitating the purchases they make using ChileCompra Express. The main goal is to build a service capable of following the best worldwide e-commerce practices, using the United Nations Standard Products and Services Code (UNSPSC) to feed the ChileCompra Express e-catalogue with digital files of goods and services traded in the different tendering, purchasing and contracting processes carried out using this system. This service must also be capable of constantly updating the information in these files when necessary. Facilitating Supply Management in the Health Sector ChileCompra Express has facilitated supply management for the public sector in very strategic areas. One of the most emblematic cases is the health sector, in which —thanks to an agreement with FONASA and the government’s AUGE Health Plan— health services, treatment and implements are purchased from private institutions to ensure adequate delivery of the services guaranteed by this social protection system. That way, all public hospitals are able to use ChileCompra Express to gain access to a wide array of services from private institutions, such as hospital bed days, dialysis and radiotherapy treatments, surgical procedures such as cataract operations and vitrectomies, as well as orthopedic prostheses. These services, which may be chosen from a list of private institutions according to price or distance, allow for an efficient delivery of services guaranteed in the AUGE Plan and help improve hospital management. Practical Case: Supporting the Work of the ONEMI During 2007, Chile suffered natural disasters such as the Tocopilla earthquake, the Aysén tsunami and snowstorms throughout the country’s central valley. These situations require the National Office of Emergencies of the Ministry of the Interior (ONEMI) to mobilize emergency resources and implements such as temporary housing, mattresses and food. ChileCompra Express has facilitated this agency’s supply management, since now by simply generating the purchase orders online, the required products are delivered directly to the airport to be loaded onto the agency’s Hercules airplanes. Although the Executive Branch often authorizes the ONEMI to make its purchases directly from the private sector, so far the institution has preferred to use ChileCompra Express. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 28 ChileCompra Management Report 2007 Assessment c. Wider Public Market Access for Micro and Small Businesses During 2007, ChileCompra implemented different initiatives specifically designed to promote greater participation of micro, small and medium-sized businesses in the public market: the Access Program, the creation of ChileCompra Entrepreneurial Centers, the ChileCompra Fairs held in different regions, the Associability Platform, and the Electronic Invoice Payment system. Each computer is equipped with the necessary software (word processing and spreadsheet applications, among other programs) for micro and small businesses to fully consult and prepare their bids. Also, each center has qualified, expert staff specially trained to support all those interested in using the workstations to place bids in the different procurement processes. The participation of micro and small businesses is essential to the public market, since they currently represent over 90% of all businesses registered with ChileCompra and have obtained a market share of 35% of all trade conducted on this market. Associability Platform Access Program: Implementation of 16 Entrepreneurial Centers As of December 2007, ChileCompra’s Access Program has opened 16 Entrepreneurial Centers across the country, in the following cities and municipalities: Iquique, Antofagasta, La Serena, Coquimbo, Rancagua, Talca, Chillán, Talcahuano, Angol, Valdivia, Villarrica, Coyhaique, Punta Arenas and Santiago (Maipú, Peñalolén and Santiago Centro). These fully equipped centers provide free internet access, training, support and services designed to help entrepreneurs significantly improve their chances of doing business with public institutions. During 2007, ChileCompra announced a project designed to improve the competitiveness of suppliers, especially micro and small businesses. The Associability Platform (which is part of the Chile Emprende Contigo presidential commitment acquired this year by President Michelle Bachelet) shall begin operation in 2008, allowing businesses to engage in partnerships with other businesses in similar fields, in order to submit joint bids in calls for tenders published by State institutions via www.chilecompra.cl. Through this associability project, ChileCompra shall provide the technology for businesses to contact each other and form associations. In alliance with Sercotec, it shall also offer technical support and assistance through professionals who will help establish the contractual relationships of these businesses, thus promoting competition and increasing the chances of micro and small businesses of participating in larger tendering processes. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 29 ChileCompra Management Report 2007 Assessment The Associability Platform is something this country shall be proud of in the future, especially our government authorities. It is the largest nationwide project for micro and small businesses that we have ever seen in all our history. If it is successful —and I am convinced it will be— it shall be an example for the entire continent. I am very confident in ChileCompra’s experience, aid and support.” Rafael Cumsille, president of CONAPYME and the Chilean Confederation of Retail Sales and Tourism Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 30 ChileCompra Management Report 2007 Assessment Scoring System In 2007, the Public Procurement Bureau created a Scoring System for its users, which allows for feedback between procuring entities and suppliers, who may mutually evaluate each other regarding the tendering processes in which they have both participated. This project is also part of the Chile Emprende Contigo presidential commitment. Thanks to this function, available on the online “desktop” any supplier may evaluate a procuring entity from the moment the tendering process is finalized. Suppliers may also see the tendering processes in which they have participated which have not yet been evaluated. At the same time, the procuring entities from public agencies may also make comments on each evaluation they receive. Inversely, procuring entities have an option on their desktop that allows them to evaluate all those suppliers awarded with bids. The suppliers may also comment on each evaluation they receive. As established in the Chile Emprende Contigo commitment, these evaluations shall become public in 2008. Ordering Project: Over 1 billion pesos in Loans for Micro and Small Businesses In October 2007, ChileCompra and BancoEstado signed an agreement to offer the more than 70,000 micro and small businesses actively participating in the public procurement system an opportunity to gain access to work capital. In order to implement this agreement, both institutions decided to launch a pilot program, and the results have been more than satisfactory. In just two months, over businesses from different 900 microfields and different regions have gained access to work capital for a total of $1 billion pesos. The agreement considers the purchase orders emitted through ChileCompra as guarantees for easily accessible loans for BancoEstado micro-businesses, which range from $100,000 to $4,000,000 pesos. This should increase the possibilities and competitiveness of micro and small businesses in placing bids and working with public agencies. ChileCompra Fairs The 8th ChileCompra Fair, held in June 2007 at the Mapocho Cultural Center, attracted 15,000 people eager to learn about this new way of doing business with the State. During the fair, 190 displays demonstrated a variety of goods and services and established numerous business contacts with those in charge of purchases for different public agencies. At the event, representatives from diverse organizations such as the National Chamber of Commerce, Conupia, INP, Sence, Sercotec, the Internal Revenue Service, the State Supply Network, ChileCompra and ChileProveedores, among others, were able to assist micro and small businessmen interested in getting their companies off the ground. More than 40 free workshops were offered for more than 2,500 procuring entities, suppliers and the general public. Afterwards, the 9th ChileCompra Fair was held in October in the region of Tarapacá, with over 6,000 visitors. Those who attended were able to participate in free workshops, roundtable discussions and an inaugural seminar titled “How to do Business in a Globalized Chile: Associability, Entrepreneurship and Businesses Financing.” In December, the first regional ChileCompra Fair, organized in the Los Ríos region, attracted more than 3,000 micro and small businesses. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 31 ChileCompra Management Report 2007 Assessment “This is a race you can’t stop running, or you’ll lose your customers. That’s why we’ve begun using the benefits of ChileCompra, attending courses and trainings. The website isn’t complicated, but it does require energy and interest. In fact, I didn’t learn computers before selling on ChileCompra; it was quite the opposite: ChileCompra taught me everything I know about computers”. María Alicia Sáenz, owner of Verona Decorations “ChileCompra helped us open up to a whole new concept of work. I was a “desk man,” one of those guys who was always there behind his desk, the old-fashioned way, but thanks to ChileCompra we created a new engineering business, and today we are able to reach a segment that is entirely new to us.” Carlos Fredes, owner of QB Plastics and Engineering Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 32 ChileCompra Management Report 2007 Assessment d. High Degree of User Satisfaction and Greater Efficiency The Public Procurement Bureau is constantly seeking to improve the quality of services offered to its users. To assure that the improvements are heading in the right direction, user satisfaction (among both procuring entities and suppliers) is periodically measured. At the same time, an annual external study is commissioned in order to measure the total public savings generated by the ChileCompra system. ChileCompra Procuring entitiy Satisfaction The procuring entities who use the ChileCompra system present a high degree of satisfaction, as shown by the studies conducted during 2007, in which around 95% of these users give the system a grade of 5 or higher (on the Chilean scale of 1 to 7, with 7 being the highest grade). The aspects that received the best evaluation by this type of user were the system’s transparency, quality of information and website operation; more than 93% of procuring entities gave these categories a grade of at least 5. ChileCompra Supplier Satisfaction Meanwhile, the satisfaction level of ChileCompra’s suppliers remained relatively stable during 2007, with around 83% of the evaluations receiving a grade of 5 or higher. The most valued aspects were quality of information and website operation (more than 86% of all suppliers gave these categories grades of at least 5), as well as the ability to use information technologies in State procurement processes, and the quality of the services provided and support offered (more than 82% of users gave these aspects a grade of 5 or higher). Estimated Savings According to a study conducted by a team of consultants from the Catholic University of Chile, the estimated savings generated by the ChileCompra system was approximately USD 100 million in 2006, of which 90% was due to the lower prices paid and the other 10% was due to lower processing costs and the massive use of framework agreements by procuring entities (which reduces the number of tendering processes, and therefore the associated administrative burden). Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 33 ChileCompra Management Report 2007 Assessment e. ChileCompra’s New Internet Platform The Introduction of ChileCompra 2.0 Four years after it was first launched, the ChileCompra system is now entering a new stage and seeking to create more added value for its many users. Using a new technological model designed by the system’s new technological operators, in 2008 the system shall offer more applications and solutions designed to help the public sector improve its procurement management. The new platform, known as ChileCompra 2.0, was launched in September 2007, and shall become fully operational in 2008, delivering a series of improvements in the services available on the ChileCompra, ChileProveedores and ChileCompra Express websites, as well as new applications that should enable a quantitative and qualitative leap forward, in order to remain at the forefront of State modernization and management. ChileCompra’s technical operation is run by a pool of businesses specialized in different areas, working together to guarantee a solid platform and develop new applications that may benefit all users: - Synapsis (Data Center Quality Control) Microsoft (CRM) Atento (Call Center) Everis (Software) América XXI (Software) Inglotec (Software) and Software After going through several tendering processes themselves, these businesses are now in charge of the development, construction, implementation and maintenance of ChileCompra’s different modules and applications. The Public Procurement Bureau, meanwhile, is still responsible for overall platform design and management. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 34 ChileCompra Management Report 2007 Assessment f. A New Project: An Open ChileProveedores Registry ChileProveedores is the official registry of State suppliers; its function is to allow public agencies to verify the legal/financial situation and technical qualifications of suppliers online. Its main objectives are: - To diminish the costs associated to each State transaction. To increase the level of certainty in the decision-making process for public agencies contracting new suppliers. To improve business opportunities for State suppliers. For procuring entities, the main benefits of this system are: - It identifies and validates suppliers It standardizes evaluation processes It establishes social relationships It shows supplier qualifications It verifies contract entitlement It stores virtual documents It keeps certificates Meanwhile, in the case of suppliers registered with ChileProveedores, its main benefits are: - It simplifies the process of selling to the State by minimizing paperwork It reduces the cost of presenting the same documentation in each tendering process. ChileProveedores began operation in early 2006, and now has over 26,000 registered suppliers all over the country. In 2007, the registry and its services became widely adopted. In December 2007, over 80% of all tendering processes required suppliers to be registered in order to do business with public agencies. During 2007, ChileProveedores trained almost 4,000 users, mainly suppliers, procuring entities and lawyers. In terms of our services, system usability was improved and new agreements were signed, one of which is with the Superintendence of Values and Insurance and allows for the transparency of partners in open joint-stock companies. Another important agreement was reached with the Property Registrar System (SIRI), enabling suppliers to obtain electronic certificates and saving them the time and paperwork involved in visiting different public offices. Meanwhile, there is a project underway to make ChileProveedores available to the private sector, providing information on different markets and supporting SME development. This project shall be the most important step forward for ChileProveedores in 2008. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 35 ChileCompra Management Report 2007 Assessment g. New Working Rules and Further Knowledge Regarding the Public Marketplace New Public Market Rules The Public Procurement Law was modified for the second time when Supreme Decree N° 20 was published in the Official Newspaper on May 3, 2007. Among the main changes are those that redefine the concept of “system user”, making the distinction between “procuring entities user”, “supplier users” and “citizen users”. This makes everyone a potential participant in the passive or active actions that take place on ChileCompra’s website. Another change has to do with the Public Procurement Bureau’s obligation to declare and follow internal public procurement rules. Each public agency is also obliged to use the Information System to produce a Purchasing Procedure Manual, which should be published on the www.chilecompra.cl website, allowing any user to learn (and then supervise) the basic guidelines created by each entity. According to the modification, this Manual must contain all matters related to: purchase planning, purchase procedure selection, drafting of bidding specifications and terms of reference, evaluation criteria and mechanisms, contract and supplier management, reception of goods and services, payment procedures, inventory policy, system use, authorizations required for the different stages of the purchasing process and organizational map of the entity and its areas of intervention, with their respective supply levels and flows. Also, an article was added (5° bis), demanding “sufficient technical competencies to operate the system,” referring to both functional and normative aspects of the system, supply management issues, and ethical and probity concepts in purchasing procedures, depending on the profile of the user. That way, concepts related to technical aspects, experience and specialization of purchases, on the one hand, are combined with the principles of transparency, publicity and probity, on the other. Communication of New Contracting Guidelines In the field of Procurement Management Policies, the following purchasing guidelines for system users must be mentioned: Annual Procurement January 19, 2007 Plan Guideline – This guide to fulfilling the obligation to periodically create and evaluate a purchasing and contracting plan describes the use of procurement plans as tools for institutional management; defines responsibilities and procedures; involves all organizational units in its creation and connect it with other budgetary processes, among others. Financial Guarantee Use Guideline – October 11, 2007 In response to public agencies that began to require financial guarantee documents for suppliers in public tendering processes of less than 1,000 UTM, the Public Procurement Bureau establishes that this requirement Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 36 ChileCompra Management Report 2007 Assessment must be based on a real necessity, and not become an entry barrier or signify higher costs for the agency. Project with Nationwide Program for Energy Efficiency During 2007, a project was developed with Fundación Chile, in the framework of an institutional agreement established under the Nationwide Program for Energy Efficiency, in order to establish contracting guidelines that may help procuring entities include energy-efficient criteria in their tendering processes. This guideline shall be promoted through diverse training activities during the first quarter of 2008. Creation of the Advisory Committee on Public Contracting The Advisory Committee on Public Procurement was created in June 2007 as a space for civil society to analyze, reflect and contrast its opinions on the Public Procurement Law. Those who have participated in this forum include: lawyers from institutions such as ChileTransparente (the Chilean branch of International Transparency), the Catholic University of Chile, the University of Chile, the University of the Andes, the National Environmental Council, the General Comptrollership of the Republic, Instituto Libertad, the Pension Normalization Institute (INP), and other legal studies. Creation of a Legal Forum Following its policy of opening new channels for citizen participation in the public market, the Public Procurement Bureau created an open forum exclusively for lawyers interested in sharing their opinions and discussing the norms, rules and operation of the public procurement system. Negotiation of Public Contracting Clauses in Free Trade Agreements In 2007, the Public Procurement Bureau actively participated in the negotiation of purchasing clauses for Chile’s Free Trade Agreements. Towards the end of 2007, there was a third round of negotiations surrounding the Public Procurement Clause in the Free Trade Agreement between Chile and Australia, in the city of Canberra, Australia, in which the Public Procurement and Contracting Bureau and the Ministry of Finance participated in as consultants. Chile already has Free Trade Agreements with public procurement clauses in effect with Central America, the United States, the European Union, South Korea, Iceland, Norway and Lichtenstein (EFTA), New Zealand, Singapore and Brunei (P4), Japan, and negotiations are currently underway with Mexico, Canada and Colombia. New Working Guidelines with Legal Departments of Public Agencies During 2007, the Public Procurement Bureau’s Legal Department began a series of meetings with the legal departments of different public agencies, such as the Armed Forces, Universities, Health Services and Hospitals. These activities discussed the modifications to the public procurement legislation, the creation of procedural manuals and the implications of the rulings of the General Comptrollership of the Republic regarding the application of the Procurement Law. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 37 ChileCompra Management Report 2007 Assessment Greater Knowledge of the Public Market The Public Procurement Bureau has created a large amount of information and research on the public market, including: • Global and Regional Operational Statistics • Monthly Management Reports • Studies of the Savings Produced by the ChileCompra System • User Satisfaction Studies • 2006–2007 Micro and Small Business Report • 2007 Report on Business Trends and Opportunities in the Public Procurement Market Each of these is available at www.chilecompra.cl for all those interested in them. Also, ChileCompra is frequently solicited as a source of information for academic studies, theses and other research, and to answer to the requirements of other supervising entities, such as: the Chamber of Deputees, the National Economic Prosecuting Office, and the Free Competition Tribunal, among others. In order to improve the business intelligence tools and the information available for users on the public market, the Public Procurement Bureau and the University of Chile have presented a project named “Improvement of Information Quality and Access in the Chilean Public Procurement Market” for CORFO’s 2007 Innovation/Public Interest Contest. This project, which seeks to create a widely available Data Mining System for its users, is currently being evaluated by CORFO. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 38 ChileCompra Management Report 2007 Assessment h. Training and Accreditation Activities for National Users 48,500 Users Trained in Activities across the Country 1,900 The Public Procurement Bureau offered significant training opportunities for procuring entities and suppliers in the public market, with more than 48,500 users participating in over 1,900 activities during 2007. These activities included various training events such as the “ChileCompra Week” in regions outside Santiago, with training for website use, thematic workshops, e-learning and diploma courses in supply management, as well as direct consultancies for public agencies regarding different supply issues. This is a summary of the main training activities offered during 2007: Nº of Activities ORGANIZATION Total Participants Average Participants Per Activity 1,925 48,533 25.2 757 25,456 33.6 Permanent Training at DUOC Basic Website Use Intermediate Website Use, part 1 Intermediate Website Use, part 2 Bidding Specifications Auditing Function 15 11 10 21 12 305 254 188 301 157 20.3 23.1 18.8 14.3 13.1 Video Conferences Closed Trainings Thematic Workshops Second ChileCompra Week ChileCompra Week Meeting of Department Heads Breakfast ChileCompra Fair (Santiago) ChileCompra Fair (Iquique) 12 33 16 30 14 1 11 31 31 2,250 1,118 947 2,349 1,310 64 240 7,594 4,664 187.5 33.9 59.2 78.3 93.6 64.0 21.8 245.0 150.5 Website Use Website Course 80 2,433 243 17.9 - 429 2,039 4.8 Procuring entities Public Procurement Bureau Consortium Stgo. Chamber of Commerce ChileProveedores Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 39 ChileCompra Management Report 2007 Assessment Participants Average Participants Per Activity 1,168 23,077 19.8 21 14 36 10 14 1 9 5 14 20 1 1 3 1 1 1 1 1 1 1 156 204 516 1,090 74 1,949 130 386 100 847 1,071 60 200 233 109 100 80 617 35 2,500 500 3,828 9.7 3.9 30.3 7.4 139.2 130.0 42.9 20.0 60.5 53.6 60.0 200.0 77.7 109.0 100.0 80.0 617.0 35.0 2,500.0 500.0 24.5 45 617.0 162.0 13.7 - 51 115 133 21 43 22 3 159 8 1 55 39 29 122 176 1,232 530 105 568 49 100 1,896 124 2 730 191 230 1,639 3.5 10.7 4.0 5.0 13.2 2.2 33.3 11.9 15.5 2.0 13.3 4.9 7.9 13.4 10 97 9.7 Nº of Activities ORGANIZATION Suppliers Public Procurement Bureau DUOC Website Use Closed Trainings Chamber of Commerce Infocenters ChileCompra Fair (Santiago) ICT Roundtable Sercotec Sofofa ChileCompra Week Second ChileCompra Week Asexma BancoEstado Confedech Breakfast “Ferretero” Meeting Expo-technology ChileCompra Fair (Iquique) “Mundo Almacen” Fair First Regional ChileCompra Fair Microbusiness ICT Fair Permanent Training Consortium Website Use Website Course ChileCompra Express Stgo. Chamber of Commerce CCS Laywers Antofagasta La Serena Peñalolén Santiago Maipú Rancagua Talca Chillán Talcahuano Angol Villarica Valdivia Coyhaique ChileProveedores Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 40 ChileCompra Management Report 2007 Assessment ChileCompra Weeks in Different Regions To promote participation and knowledge of the public market, the Public Procurement Bureau organized several tours across the country, offering free training to procuring entities, suppliers and all those interested in doing business with the State. Each of Chile’s regions was visited several times and training was given to over 5,000 people, with the participation of diverse associations and business representatives from each area. Training Agreements Financial Associations with Trade and The Public Procurement Bureau signed a series of agreements with trade and financial associations in order to include training on the public market in each sector’s specific activities. A collaborative agreement was signed with the National Chamber of Commerce and some of its regional headquarters, allowing for weekly courses and seminars on the ChileCompra system. The monitors of these chambers were also trained to offer permanent assistance to local businesses and associates. At the same time, the Public Procurement Bureau has participated in the trainings offered by BancoEstado and the Guarantee Fund for Small Businesses (Fogape) in different cities throughout the country, with information regarding the benefits of participating in the public market and the ordering and electronic invoice payment services. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 41 ChileCompra Management Report 2007 Assessment “We would like to extend our thanks to the Public Procurement Bureau for having believed that the supply sector was capable of doing things right and leading this tremendous reform in the public procurement market. In spite of all the existing gaps, the team at ChileCompra gave us their unconditional support, trusted in our capacities and that we would freely engage in the immense cultural changes associated to this new way of doing business with the State, and that we would build all the connections necessary to modernize our supply sector.” Igor Morales, National Director of the State Supply Network (REDABA). Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 42 ChileCompra Management Report 2007 Assessment i. ChileCompra Continues Advancing as an International Point of Reference The Public Procurement Bureau has been recognized internationally as one of the most successful models worldwide, which is why several countries have based the implementation of their own electronic public procurement platforms on our system. International Cooperation During 2007, ChileCompra had important collaborations with the following countries: Angola, South Africa, South Korea, Argentina, Brazil, Colombia, Costa Rica, Ecuador, El Salvador, Mexico, Panama, Peru, Paraguay, and the Dominican Republic. The main activities in this area had to do with receiving foreign delegations (both for shorter visits or longer internships), conducting direct consultancies for other public procurement systems, and participating in seminars, among others. Participation in International Forums The Public Procurement Bureau has also been an active participant in a series of international forums and work groups, including: • The National e-Transactions Conference 2007 “Towards Tangible e-Government Transactions” (Riad, Saudi Arabia – January 2007) • 7th Global Forum “Reinventing Government” (Vienna, Austria – June 2007) • Regional Workshop on IDB–WB tendering processes (Bogotá, Colombia – March 2007) • 7th Annual Microsoft Summit for Government Leaders (Cartagena de Indias, Colombia – March 2007) • Regional Workshop on IDB–WB tendering processes (Lima,Peru – April 2007) • Seminar on Interoperability and Intranet Government (San José, Costa Rica – May 2007) • 11th Session of Work Group I on Public Contracting, of the United Nations Commission for International Market Rights (New York, USA – May 2007) • First International Congress on Government Purchases (Santiago, Chile – May 2007) • OCDE Expert Group Meeting on Conflicts of Interest & Symposium on Lobbying (Paris, France – June 2007) • Building a Domestic ICT Sector—Best Practices for Accessing Financing and Promoting Investment (Cairo, Egypt – July 2007) • Seminar on “Innovation in State Purchasing: International Experiences – National Projections” (San José, Costa Rica – August 2007) • 2nd Work Meeting on Joint Ventures for Procurement of the CAD–OCDE (Copenhagen, Denmark – Sept. 2007) • Work Meeting of the Executive Committee of the Inter-American Network of Public Procurement and IDB representatives, Institute for Connectivity in the Americas (ICA-IDRC), and the OAS (Miami, USA – October 2007) • APEC Workshop on Government Procurement in WTO and FTA (Peking, China – October 2007) • 12th International Congress of the CLAD on State Reform and Public Administration (Santo Domingo, Dominican Republic – Nov. 2007) • OCDE Roundtable on the Checklist for Enhancing Integrity in Public Procurement (Turin, Italy – Nov. 2007) • 2nd International Seminar on Public Contracting – Inter-American Network of Public Procurement (Asunción, Paraguay – Dec. 2007) Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 43 ChileCompra Management Report 2007 Assessment j. Awards and Recognition Award for Excellence in Public Service – United Nations (June 2007) On June 26, 2007, at the 7th World Forum on the Reinvention of Government, the joint secretary of the United Nations, Asha-Rose Migiro, presented María Olivia Recart, Subsecretary of Finance, and Tomás Campero, Director of Public Procurement and Contracting, with the United Nations Award for Excellence in Public Service, corresponding to Latin America and the Caribbean, in the category of “Improving Transparency, Responsibility and Responsiveness in Public Service.” This is the highest international acknowledgement for excellence in government, and the Procurement Bureau was the only Latin American agency acknowledged during the 2007 version of the UN Public Service Awards. Award for Best Practices in Probity, Transparency and Access to Information – Executive Secretariat of the Agenda for Government Probity and Transparency (July 2007) ChileCompra’s Transparency Indicator Panel was recognized as one of the best practices in terms of probity, transparency and access to information to be replicated by other government agencies. Selected from a total of 79 proposals, this project also obtained an honorable mention for its system of public contests for hiring staff members. These distinctions were presented by the Minister Secretary General of the Presidency, José Antonio Viera-Gallo, and the Executive Director of the Agenda for Government Probity and Transparency, Rafael Blanco. ExcelGOB Award for the Best Solution in Transparency of Public Services – OAS– GEALC Network (May 2007) The ChileCompra system was acknowledged as the “best solution for electronic government in terms of transparency” by the Network of Electronic Government Leaders of Latin America and the Caribbean (GEALC Network), an organization of experts form 31 countries under the leadership of the Organization of American States (OAS), the Institute for Connectivity in the Americas (ICA), the Inter-American Development Bank (IDB) and the Canadian Agency for International Development. In a ceremony celebrated last June in Santo Domingo, Dominican Republic, the Director of Public Procurement, Tomás Campero, received the ExcelGOB Award, which acknowledges government institutions that make good use of Information and Communication Technologies (ICT) in the region, promoting transparency and citizen participation. Social Responsibility Award 2006 – Fundación ProHumana (April 2007) The Procurement Bureau was presented with the 2006 Fundación ProHumana Social Responsibility Award, which acknowledges businesses, civil society organizations and government agencies that demonstrate innovative, creative and exemplary management within the framework of social responsibility. The Procurement Bureau was acknowledged, among other aspects, for its contribution to transparency in business relationships, for the Access Program designed to promote micro-businesses participation in the system, for the inclusion of environmental management criteria, as well as for its internal labor policies. Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 44 ChileCompra Management Report 2007 Assessment Acknowledgement of Support towards the State Supply Network – REDABA (November 2007) This acknowledgement, rewarding the effort, conviction and support that ChileCompra has put into the Supply Network (Red@ba) was presented at the Third National Seminar on Public Procurement, and received by Tomás Campero, Director of Public Procurement. Acknowledgement as an Exemplary Practice in Electronic Government - The Economist (2007) A 2007 study on the preparation of countries for the digital era (e-readiness), carried out by the Economist Intelligence Unit —a group of consultants and researchers belonging to the editorial group of The Economist magazine— mentioned ChileCompra in reference to the governmental vision in terms of promoting technological competitiveness, naming it as an example of a government institution well-prepared for the digital era. promoting the use of technologies to make operation more efficient. The study also indicated that governments that use their purchasing power to strengthen e-commerce have some of the best tools for preparing their countries for processes of digitalization and connectivity. Inclusion among the Country’s Most Innovative Projects – Santiago Chamber of Commerce and Fundación País Digital (2007) The Santiago Chamber of Commerce (CCS) and Fundación País Digital, with the support of Banco Santander and Microsoft Chile, presented the book “Innovation Made in Chile,” which tells the stories of 50 Chilean innovators that have stood out in the most diverse fields. The selection included Tomás Campero, Director of Public Procurement and Contracting, who has led the reforms to the public procurement market by creating and consolidating the ChileCompra system, promoting its widespread use and thereby contributing towards the modernization of the State. The publication stated that greater transparency was created by using digital communication channels, basing its activities on use of the internet and Monjitas 392 8º piso, Santiago, Chile - CP 832-0113 Telephone: (56-2) 290 4400 - Fax: (56-2) 290 4458 Page 45
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