Brazil Electronic Government Procurement
ExpoXangai – feb/2010
Context
Brazil:
Administrative Spheres
Federal Executive structure
Ministry of Planning, Budget and Management
Secretariat for Logistics and Information Technology
Goals of this presentation:
Brazilian experience
Results, options, estrategies
Lessons learned
BRAZIL – Public
Procurement
Nowadays:
RESULTS:
Procurement
Providers
Reverse electronic
auction
Price Contracted, bt item type and year – 2002 to 2009
Year Goods Services Total
2002 6.714.436.227,77 13.110.982.956,74 19.825.419.184,51
2003 6.239.584.416,48 7.905.994.920,67 14.145.579.337,15
2004 7.824.759.603,72 12.683.403.463,73 20.508.163.067,44
2005 12.852.792.348,21 12.217.478.931,71 25.070.271.279,92
2006 17.155.321.422,86 12.643.773.310,91 29.799.094.733,77
2007 18.196.557.330,44 17.026.034.187,04 35.222.591.517,49
2008 13.970.504.893,71 13.144.200.690,79 27.114.705.584,50
2009 22.761.175.025,94 26.968.931.791,38 49.730.106.817,32
Average 13.214.391.408,64 14.462.600.031,62 27.676.991.440,26
100%
6% 6% 6%
Itens Contracted
11% 8%
15% 13%
90% 19%
80%
70%
60%
50% Services
92% 94% 94% 94%
85% 87% 89% Goods
40% 81%
30%
20%
10%
0%
2002 2003 2004 2005 2006 2007 2008 2009
Quantity and value contracted, by type of tender – 2009 (R$)
Type Number of Processes Value Contracted
Competitive Bid 1.443 13.632.187.195,97
International Competitive Bid 46 968.713.110,71
Contest 16 987.197,81
Invitation 1.520 63.451.627,07
Exemptiom from Tender 235.688 5.399.712.320,25
Inelegibility from Tender 15.838 5.824.096.648,18
Reverse electronic auction 34.342 20.471.916.665,42
Reverse physical auction 1.091 2.740.335.020,74
Price survey 1.719 628.707.031,16
Total 291.703 49.730.106.817,32
Percentual of value contracted, by type of tender – 2009
Value Contracted
1,3%
6%
Competitive Bid
International Competitive Bid
27%
Contest
Invitation
41% Exemptiom from Tender
Inelegibility from Tender
2%
Reverse electronic auction
11% Reverse physical auction
Price survey
12%
Share on buying values, by economic sector and year – 2002 to 2009, Jan-Dec
Year Industry Commerce Services Others Total
2002 2.170.846.859,79 3.010.529.295,88 12.347.612.578,07 2.296.430.450,77 19.825.419.184,51
2003 2.013.939.738,25 2.496.934.121,52 7.886.286.252,66 1.748.419.224,72 14.145.579.337,15
2004 2.575.989.695,44 3.217.862.562,60 12.818.664.238,01 1.895.646.571,39 20.508.163.067,44
2005 4.348.207.918,94 2.384.522.898,93 16.831.383.444,08 1.506.157.017,97 25.070.271.279,92
2006 3.780.890.181,14 5.791.407.950,95 17.894.371.444,07 2.332.425.157,61 29.799.094.733,77
2007 4.171.100.304,06 7.806.856.747,62 20.645.368.868,52 2.599.265.597,28 35.222.591.517,49
2008 3.616.822.993,73 7.873.070.336,60 14.318.522.630,64 1.306.289.623,53 27.114.705.584,50
2009 6.983.208.249,17 11.147.393.384,73 28.661.510.700,86 2.937.994.482,55 49.730.106.817,32
Average 3.707.625.742,56 5.466.072.162,35 16.425.465.019,61 2.077.828.515,73 27.676.991.440,26
100%
6% 8% 7% 5% 6% Value Contracted
12% 12% 9%
90%
80%
70% 53%
58%
60% 59%
60% 56% 63% 67% Others
62%
50%
Services
Commerce
40%
Industry
30%
29%
22%
18% 10% 19% 22%
20% 16%
15%
10% 17%
14% 13% 13% 12% 13% 14%
11%
0%
2002 2003 2004 2005 2006 2007 2008 2009
Annual Variation on buying processes of common goods and services, by type of tender¹ – 2002 to 2009
Buying Processes
100% 3% 3%
7% 4,8%
90% 19% 21% 19%
26%
80% 2%
5%
14%
70% 9% 8%
8% 37%
60% 67%
77,1% 79%
86%
50%
6%
40%
60% 62%
30% 55%
3%
20% 36%
3,2% 4%
22%
10% 13% 4%
12%
4%
5% 3% 2% 2% 3%
0% 1% 1,4% 2%
2002 2003 2004 2005 2006 2007 2008 2009
Competitive Bid Invitation Price Survey
Reverse Electronic Auction Reverse Physical Auction
¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid.
Annual Variation on buying values of common goods and services, by type of tender¹ – 2002 to 2009
Value Contracted
100%
7%
11% 12%
90% 23%
29,9%
34%
80% 43%
70% 0,9% 59%
8% 4% 55%
60% 8%
5,9%
6%
7% 74%
50% 79%
6%
62%
5%
40%
2%
30% 22%
54,9%
47%
20% 40% 3% 36%
2% 1%
2% 0%
10% 1% 2%
15% 1%
11%
13%
7%
0%
2002 2003 2004 2005 2006 2007 2008 2009
Competitive Bid Invitation Price survey
Reverse Electronic Auction Reverse Physical Auction
¹ Excluding the following types: Exemption from Tender, Inelegibility from Tender, Price Survey and Technical and Price Competitive Bid.
ABC Curve on buying values of material groups from the Reverse Electonic Auction –2009
Hygiene products 2% Reverse Electronic Auction: Materials Groups
Machinery for specialized industry 4%
Furniture 4%
Food supply 5%
Construction materials 7%
Instruments and laboratory equipments 8%
Vehicle 9%
Equipments and medical, dental and veterinary supplies 15%
Equipment for automatic data processing, (including firmware), software,
16%
accessories and support equipment
Value Contracted (%) 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
ABC Curve on buying values of services groups from the Reverse Electronic Auction – 2009
Engineering Services 2,2%
Reverse Auction: Group of Services
Land transport services 2,4%
Consultancy Services and management/administration 2,5%
Other business, technical and professional services 2,7%
Other services/miscellaneous 2,8%
Leasing services relating to rental or other goods 3,2%
Leasing Services or rental Services of machinery and equipment w ithout operator 3,4%
Leasing services for the right to use non-financial intangible assets 3,7%
Cleaning Services 5,1%
Iinvestigation Service and Security 6,1%
Travel Agency Service, Tour Operator and Tour Guide 6,9%
Special Types of Construction Services 11,4%
Maintenance and repair of products made of metal, machinery and equipments 13,5%
Other Support Services 15,0%
Value Contracted (%) 0% 5% 10% 15% 20% 25%
Numbers
Providers 335,000
Users 66,000
Simultaneous users 22,000
Downloads/year 115,000
Byers Oficcers 4,000
Goods 195,000
Systems – Cronology:
List of Providers
Material Catalog
Automatic Publication
Automatic Commitment
Other systems Integration
Reverse Physical Auction
Reverse Electronic Auction
Price Registration System
(Framework contracts)
Preferential Treatment to small
business
(*) IDB and BIRF accept
Comprasnet procurement BI
Perspectives:
Standardization and Scale
Electronic quotation for emergency
procurement
Changes in the Public Procurement
Law:
Reverse Auction mandatory for
lowest price;
Reverse Auction for works under 3.4
millions;
Use of IT in all types of
tenders.
Lessons Learned:
“Pioneering pay a price”
Starting “It is not a PANACEA”
Difference made by “It is a incremental process”.
people
“every journey begins with
the first step....
but you must know the
direction”
Price Contracted, by Individuals and providers and year – 2002 to 2009
Year Individuals Companies Total
2002 1.874.902.343,09 17.950.516.841,42 19.825.419.184,51
2003 1.468.482.943,44 12.677.096.393,71 14.145.579.337,15
2004 1.572.669.642,64 18.935.493.424,80 20.508.163.067,44
2005 2.701.298.291,58 22.368.972.988,34 25.070.271.279,92
2006 2.805.577.550,75 26.993.517.183,02 29.799.094.733,77
2007 2.202.176.037,99 33.020.415.479,50 35.222.591.517,49
2008 1.938.176.468,14 25.176.529.116,36 27.114.705.584,50
2009 3.055.483.150,43 46.674.623.666,89 49.730.106.817,32
Average 2.202.345.803,51 25.474.645.636,75 27.676.991.440,26
100% Itens Contracted
90%
80%
70%
60%
Companies
97% 98% 98% 99% 99% 99% 100% 97%
50% Individuals
40%
30%
20%
10%
0% 3% 2% 2% 1% 1% 1% 0% 3%
2002 2003 2004 2005 2006 2007 2008 2009¹
See you there:
World Cup 2014 &
Games of the
XXXI Olympiad
2016