Government eyes big savings with e-procurement

Government will save as much as P2.4 billion from its annual budget for common-use supplies when it implements its electronic procurement system (EPS).

According to the Department of Budget and Management, prices in the EPS marketplace are at least 40 percent lower than commercially available goods simply by short-circuiting the marketing and distribution chain.

At present, the government spends some P6 billion every year for common-use supplies, said Estanislao Granados, director of DBM’s procurement service.

These common-use supplies cover some 350 items of goods and services that are needed in the transaction of public businesses. These include office supplies, office furniture and services like trucking, hauling, janitorial, security and related services.

"The idea is for all government units with internet capability to post their supply requirement on the EPS," Granados said. "The system will automatically notify all bid opportunities to registered suppliers on line."

Granados said the system would put all suppliers on equal footing, removing biases that would otherwise be present in actual and physical bidding.

Granados said at least 50 percent of the system is already in place, including three main features: the electronic billboard where agencies could post their notices; the supplier registry which features the database of suppliers and the electronic catalog which provides an itemized display of goods and services available.

The system already allows registered agencies to buy goods and services on line, matching 1,367 registered suppliers with 1,403 registered government units.

According to Granados, only two remaining features need to be completed; the virtual store where agencies could pick the goods and buy on line, and the mechanism that would allow electronic bids.

The Arroyo administration is targeting to link all government offices to the EPS by January 2003.

Granados said at least five infotech companies have expressed interest in bidding for the construction, design, hosting and implementing of the EPS. "By April, the government will decide whether we will build our own infrastructure or we will outsource," Granados said. "The sentiment is towards outsourcing."

The creation of the EPS was mandated by an executive order and is intended to ensure transparency in transactions, efficiency and effectiveness in the procurement of goods, services and civil works.