The Governance structures with clear management model delineating roles

and responsibilities of the various institutional players will play a critical

role in guiding successful implementation and managing the mandated
interests of the key stakeholders equally plays a significant role in the
sustainability of the e-Procurement System.

a. E-Procurement Implementation Governance and Administration

The effective implementation of e-procurement hinges on establishment of

appropriate and participatory institutional arrangements and governance
structures involving key stakeholders to manage coordination, and policy
development.

e-Procurement Steering Committee (e-Procurement SC)

The e-Procurement system implementation shall be carried out by the

coordinated set of committees and members including the e-Procurement
Steering Committee (e-PSC). The Steering Committee shall be chaired by the
State Minister of the MoFEC, and representations shall be from the FPPA,
PPPDS, Private Sector Association, Civil Society, MCIT, and others if required.
The Steering Committee shall be reporting to the Minister of the MoFEC. Key
responsibilities of the Steering Committee will be the following:
 Provide policy guidance.
 Approve e-Procurement strategy and Roadmap.
  Validate and approve high level plans for the e-Procurement Program.
 Mobilize and secure resources required for successful implementation of
 e-Procurement.
 Provide advocacy and visibility of the program.

e-Procurement Project Management Unit (e-PPMU)

e-PPMU will have a project manager to coordinate all activities of design and
implementation including technical team coordination, monitoring of project
progress, capacity building and change management activities, contract
management of consultants and experts, and will be the principal liaison with the
e-Procurement System Developer. The mandate of the Project Manager is as
follows:
a) Ensuring that the e-Procurement project is clearly defined for all phases of the
project
b) Identifying the project risks and developing strategies to manage those risks
c) Determining the project requirements and budget accordingly
d) Effective management of all contracts related to the project
e) Effective coordination of Government Agencies and other stakeholders
involved in e-Procurement Implementation
f) Support and facilitate the design and development of e-Procurement System
g) Develop and update roadmap and strategy to guide project implementation.
h) Develop Project Charter to outline the project objectives, scope, identify the
main stakeholders and specify their roles.

39
 i) Review the project schedule and resources
j) Review supplemental plans including risk management, communication,
project quality and change management plans
k) Prepare the terms of reference for major Consultants who will be engaged
during the project.
l) Advise on policy changes that may be required to implement the e-
Procurement.

The e-PPPMU will handle planning and preparation activities at the beginning
and will later become a technical support team to provide guidance, technical
assistance where required. The skill mix of the e-PPMU may include:

 Strategic procurement management and accountability, user support,

 training and liaison;
 A business manager who will manage the contractual relationship between
the government and the service provider if the service is provided by a
 third party and will monitor performance.
 Procurement support staff-administration of process and clerical work;
 E-Procurement system manager/analyst;
 Data Centre, network and security specialist;
 Database specialist-data management, procurement reporting;
 Web Programmer;
 Help Desk support;
 Support staff.

e-Procurement Technical Committee (e-PTC)

At Technical level, it will have a separate e-Procurement Technical Committee (e-

PTC) involving a number of selected users of agencies or departments that are
key to e-Procurement implementation like FPPA, PPPDS, MCIT, Central Bank of
Ethiopia, Business Registration, Representation from pilot Agencies, and e-
Procurement/IT Systems Analyst/Director of data center and others required.
The team will be involved from the initial stage of project implementation
providing input on design, testing the new system, acquiring knowledge of the
new system, and further use the knowledge on the capacity building and support
the implementation of the e-Procurement system.

Following project team and organization structure will be put in place for the
implementation of e-Government Procurement:

b. Organization Chart

Figure 6: e-Procurement Implementation Organization Structure

40
The e-Government Implementation Team will have 20 members including 1
Project Manager, 1 procurement expert, Communication Specialist, 1 Business
Process Reengineering and Change Management Experts, Trainers, Developers,
IT experts on Application, Database, System and security, Helpdesk staff and
support associates as required. Number of ICT related staff depends on the e-
Procurement System acquisition model. This will later evolve into an e-
Procurement Unit to be established as a permanent unit for the sustainability of e-
Procurement system management, support and rollout functions. Positions and
numbers of the administrative and technical workforce will be adjusted according
to the pace of progress and requirements on the implementation process.

To guide and oversee the technical systems planning and implementation as

specified above national and international technical consultants shall be engaged.

Step 1.2: Situational Assessments

A procurement performance baseline study shall be carried out to assess the

current procurement status and setting benchmark of the current procurement
performance of the public procuring entities, and regulatory/oversight agencies as
well as bidding community can be carried out at the beginning of the e-
Procurement implementation.

Step 1.3: e-Procurement Readiness Assessment

An e-Procurement Readiness Assessment based on a set of survey

questionnaire prepared by the MDBs was carried out in March 2018 to assess the
readiness of the public, private and other stakeholders of the e-Procurement
system. The e-Procurement readiness assessment provides the status of the
country against nine key dimensions essential for the introduction of e-
Procurement in the country. The results of the e-Procurement readiness
assessments indicated that the country has moderately satisfactory level of
preparedness or supporting programs for such readiness.

41
Figure 7: e-Procurement readiness assessment.

The assessment concluded to a favorable alignment of essential factors to

support a successful transition to enhanced e-Procurement platform.

Figure 8: Radar diagram of Ethiopia e-Procurement Readiness Assessment 2018

42
The existing system, private sector integration, and legislation in Ethiopia appear
to be firmly established and recognized. ICT infrastructure and web services
established by the MCIT have progressed significantly over the last couple of
years and are now poised to successfully support a range of e-Government
services including e-Procurement. Other dimensions need significant
considerations and improvements.

Step 1.4: Define e-Procurement Strategy and Roadmap

The e-Procurement strategy shall envision value-for-money and establish good

governance in public procurement implementing the enhanced e-procurement
platform throughout the country with a set of objectives against which the e-
procurement program can be monitored. The objectives could be summarized as
three broad and high-level objectives, namely (a) improved governance through
enhanced transparency and accountability, (b) effectiveness through
management information and efficient processes, and (c) economic development
through competitiveness and improved investment climate. Key performance
indicators are identified under each of the strategic objectives and targets are set
for three (3) years for monitoring the progress.

The e-Procurement strategy also shall address policy issues about legal,
technical, administrative, capacity building, governance model, sustainability
model, human resources model, authentication, third-party services, operations
and maintenance models, and a roadmap with a clear action plan for the
implementation. Cabinet of Ministers endorses the e-Procurement strategy with
full ownership and commitment to the implementation of e-Procurement in
Ethiopia.

Step 1.5: Sensitization

Public awareness on e-Procurement and its benefits, challenges, the purpose of

implementation, role of stakeholders shall be communicated to the general public,
and especially the political level, top-level administrator, policy makers, and civil
societies for the maximum utilization and sustainability of the e-Procurement
system. These activities shall be implemented through organizing sensitization
programs like workshops, seminars, audio-video programs in radio and TV, and
in paper media.

STEP 2: FOUNDATION BUILDING

Ethiopia has already built some of the foundations required for the development
and adoption of an enhanced end-to-end e-procurement platform, some other
activities remain to be carried out. A version of e-Procurement system, which is
expected to be used as the national e-Procurement system is to be reviewed for
identifying the gaps and required enhancements, and business process
reengineering should be carried out, wherever possible, for enhancing the
efficiency in procurement process.

43
Step 2.1: Securing Budget

Securing the funding to ensure implementation happens as scheduled plan

instead of piecemeal is an important element of the preparatory process of e-
Procurement system implementation. Implementation of the e-Procurement
platform shall be funded under the ―Public Investment Management Project‖
funded through the IDA credit. The budget covers preparatory works, e-
Procurement system acquisition, datacenter enhancements, pilot
implementations, system audits, and capacity building. Nationwide roll-out is not
covered by the current IDA credit.

Step 2.2: Business Process Reengineering (BPR)

Mere automation of the paper-based procurement system does not give the
desired efficiency and leverage the available technology. It is important to
streamline the manual process and practices by business process reengineering
first, which help improve the efficiency gains benefits because of the streamlined
procurement process. The business processes should be based on the new
legislation and should be re-engineered to make the processes more simplified,
efficient, and get the benefits of modern technologies. This will require changing
the way the procuring entities prepare the bidding documents, bidders prepare
the bids, fees are collected for the bidding dossier purchase, bid securities are
handled, processes of evaluation and communication with the bidders and other
stakeholders is managed, contracts are managed, and complaints are handled.

Simplified/reengineered procurement processes and practices will allow the

stakeholders to operate in a transparent, efficient, cost-effective, and timely
manner and reduce administrative burdens on procuring entities and bidding
communities leveraging the e-Procurement. BPR should be carried out by the e-
GP System developer before e-GP System enhancements and implementation.

Step 2.3: e-Procurement Guidelines or Regulations

The transition from a paper-based procurement system to an electronic system

entails significant reengineering in process, practices, and means as well as
brings up a new relationship with existing and new stakeholders. When most of
the requirements of compliance with the procurement acts and regulations are
automatically addressed by the e-Procurement system, new areas of
performance-based roles of organizations, departments, and units emerge.

Automation of processes and practices under the e-Procurement will generate

new relationships between stakeholders-regulatory/oversight agencies, bidding
community, banks, and with others, and new roles to be performed by different
agencies. For example, the e-Procurement system would have to be linked with
different government e-services for accessing, verifying, and validating the
authenticity of the data to be used in e-Procurement. Also, the different laws and
regulations governing electronic transactions (e.g., information and
communications technologies, e-transaction, and e-signature acts) as well as
national e-government strategies, e-procurement strategies and other master

44
 guidelines, would have to be synchronized and harmonized with the Public
Procurement regulations, guidelines, manuals, and circulars.

For making the implementation of the e-Procurement system well-accepted and

free of ambiguities while the majority of procuring entities are still following the
paper-based procurement practices, introducing the e-Procurement system shall
be supported by the introduction of a section on e-Procurement in the Public
Procurement and Assets Disposal Regulations. In addition to the regulations on
e-Procurement, the standard bidding documents also shall be reengineered
making friendly with the e-Procurement system requirements. This requires that
e-Procurement regulations govern the operation, use, validation, performance
monitoring by defining procurement performance monitoring framework, and
scope of the e-Procurement system in the country. The e-Procurement
regulations shall serve as the governing principles for the operation of the e-
Government Procurement platform.

Step 2.4: Development of e-Procurement Business, Functional and Technical

Specifications

The government initiative towards the introduction of an enhanced e-Procurement

in the country can generate significant efficiency gains in public procurement
sector. The enhanced e-Procurement system is expected to improve
transparency, accountability, procurement management, strengthens
documentation, compliance and performance audit capabilities around the
procurement function and improving good governance in public procurement
sector.

The e-Procurement specification shall be based on the provisions of the new

legislation, and e-Procurement regulations and at the same time taking leverage
of the information and communications technologies to make the public
procurement transparent, efficient, effective, and cover the end-to-end
procurement processes for all procurement methods with adequate
reengineering. It shall clearly indicate the business, functional, and technical
requirements of e-Procurement system providing functional facilities to all the
major users.

It shall define the complete scope of the e-Procurement system and then define
the deliverables by the software supplier and prepare the bidding document for
national or international competitive bidding for the acquisition of an e-
Procurement system.

Major functionalities to be supported by the e-Procurement system are listed as

follows:
 Centralized registration system for procuring entities, Bidders, and all
other users of e-procurement system (oversight agencies, Attorney
General, monitoring agencies, Development Partners, banks, and
 others)
  User-specific administrative dashboards
 E-bidding (covering all processes and procurement methods for goods,
works, and services supported by public procurement guidelines and

45
 manuals of the country from annual procurement plan preparation, e-
advertise, e-Clarification, e-Amendment, e-submission and
modifications, e-evaluation, e-complaint handling, e-notice to signing of
contract, Visualization of procurement performance based on Open
Contracting Data Standard (OCDS),
 Complaint and dispute management
  E-catalog
 All procurement methods prescribed by the prevalent procurement
 proclamation
 E-contract management
  E-Procurement performance measurement and Monitoring
 E-invoicing, payment, bid security, advance and performance
 guarantees (through banks and other options)
 Interface with Integrated Financial Management System (IFMIS),
company registrar’s office, banks, tax, and other e-services relevant to
e-Procurement
 User activities under administrative workflow and system audit trails
 Online help with visual presentations

STEP 3: IMPLEMENTATION AND ADAPTATION

Step 3.1: Acquisition of e-Procurement System

In implementation, acquiring e-Procurement system is pivotal. Selection of right

procurement system acquisition approach affects the sustainability and the
success of the e-Procurement systems. There are different options for acquiring
the e-Procurement application:

1) Enhance the Home-grown e-Procurement System to National e-

Procurement System filling all gaps and following the International best

practices. (recommended)

2) International Competitive Bidding for the Off-the-shelf fully open

source-based e-Procurement application with customization

In the Ethiopian context, MCIT and BDU e-Procurement systems were assessed.
Use of home-grown system help enhance the local capacity and will be cost-
effective not only at the beginning but also in long run leveraging the local content
and local technical capacity. Refer to sub-section 1.6 for an analysis of the MCIT
and BDU e-Procurement Systems based on their system demonstration. MCIT’s
e-Procurement system is agreed to be enhanced for use as the National e-
Procurement system. MCIT shall transfer all the Intellectual Property Rights (IPR)
of the e-procurement system software to the FPPA for using as the National e-
Procurement System.

46
Step 3.2: Data Center Preparation

Building the data center involves installation of power solutions and power
backup, precision air-conditioning, fire alarm system, digital closed-circuit
television, surge suppressor, access control system, water detection system,
dehumidifier, pest repellent, data rack, raised flooring, electrical and civil works,
and passive components like network cables, patches, and so on, procurement of
data center and mirror center servers, network equipment, storage, power
solution, Internet connectivity, and required system software and licenses.

FPPA shall use the data center at the MOFEC as the primary data center and
temporarily, backup will be hosted at the National Data Center operated by the
MCIT. Operation, maintenance and any enhancements of the e-Procurement
System are the responsibilities of the FPPA and shall be carried out in
coordination with the MOFEC and MCIT. FPPA shall ensure the hosting
environment, e-Procurement system and data to be highly secured, and available
for access around the clock.

Establishment of the Disaster Recovery site is a critical factor. The FPPA shall
develop a policy on risk, reliability and performance requirements for such hosting
primary and disaster recovery environments.

Step 3.3: Capacity Building and Change Management

a. Change Management

Automation of the paper-based procurement system is not panacea and does not
give desired efficiency and leverage the available technology. Change
Management (CM) is intended to provide a holistic framework to manage the
change in the functional, technical, organizational or regulatory aspects. Change
management is one of the important activities to be carried out at all levels of
user environments for the successful adaptation of the e-Procurement system.
For public procuring entities, the new rules and practices in the electronic
environment will require changes to the way they work, for example, in use of
new procedures, as well as the technology mandates. For some, the appropriate
technology will already be in place. For others, that are operating public
procurement in a purely manual manner, there is a need to take necessary
change actions in a short time to ensure e-Procurement system can be properly
implemented.

An extensive level of change has to be made for the smooth implementation of

the e-Procurement system, which will be fully automated and cover the end-to-
end processes and practices.

The scope of the change management extends to the people, process and
technology as these relate to the e-Procurement system. Changes envisaged are
enterprise-wide and span the following areas:
a) Design and acceptance of new business processes and practices

47
 b) Re-structuring shaping of institutions
c) Work ethics
d) New performance measures
e) Changed roles and responsibilities
f) Training
g) Changed policies and procedures
h) New services and information flows to clients
i) Devolved power management
j) Regular communication
k) Emotional change management—Emotional readiness is very
important for success.

 Developing leadership at political, social, different levels of 
government bureaucracy, private sector bidding community


Managing resistance in public procuring entities and bidding
 community

b. Capacity building

An important requirement for the implementation of e-procurement system

involves provision of sensitization programs to political and top-level authorities,
training to government managers, staff and suppliers. Failure to address this
issue may lead to a lack of confidence in adopting e-Procurement and could
result into delayed implementation.

The training and capacity building programs shall be designed for all categories
of personnel including Executives, Policy Officials, Procurement professionals,
auditors, bidders, and other players in the procurement function. FPPA shall
coordinate with Ethiopian Chamber of Commerce and Sectorial Association for
providing capacity programs to bidding community.

For capacity building, the following activities shall be carried out:

 Benchmark study visits for the selected key users in few of the countries
where e-Procurement system is already implemented shall be conducted for
gaining knowledge and learn the best practices from the experience on the
implementation of e-Procurement system. Such visits will be carried out at the
preparatory stage of e-Procurement implementation process, so that the
knowledge gained from other countries could be used for the success of the
e-Procurement implementation in Ethiopia.

 Different levels of training program shall be conducted to address the capacity
needs of different users involved in the procurement processes (i.e., training
programs for procuring entity procurement users, bidders including
professional association members, evaluation committee members,
accounting officers, bank users, oversight agency users, etc.). Training
programs will be in the form of regular courses as well as ad hoc trainings on
demand basis. Training programs shall be conducted at the all-administrative
levels of public procurement.

48
 For the effective adaptation of the e-Procurement system by its key users and
make the e-Procurement system successful, initial support on its operation,
maintenance, implementation management is very important. For this, a
helpdesk with adequate resources under the project management team shall
be established.

3.4: Pilot and Full Rollout Across All Public Entities

Implementation of e-Procurement system shall be adopted in phased rollout

model as opposed to the traditional phased module activation model. This means
that the initial system developed shall cover all methods of procurement and
stages of the procurement process and all the required functionality to enable
piloting of a complete system. Procuring entities will chose which procurement
method to start with based on their availability of procurement packages under
the annual procurement plan.

Phasing shall be standalone, i.e. e-procurement processes should be complete

for any procurements. Options of parallel submission of hardcopy bids and also
online submission for the same procurement shall not be encouraged. If options
provided, it will only delay the adaptation of the e-Procurement system and
support the procurement reform in true sense. All the procurement methods shall
be developed and available for use from the very beginning. Procuring entities
using e-Procurement system should completely carry out all procurement
processes and procurements from the system itself, no manual and electronic
system shall be carried out in parallel. If systems run in parallel, it does not
improve efficiency of the agency but adds more burden for capacity requirements
as well as resources for both types of procurements. It will only promote systemic
corruption.

Phases of rollout shall be divided into two phases:

1. Pilot in selected agencies

2. Wider rollout throughout the country

The e-procurement system implementation shall be in phased manner selecting

few key public procuring entities, which provides an opportunity to reduce the e-
procurement system failure risks, test the functionalities and processes in e-
procurement system, and extend the demonstration effect in rolling out the
system in other procuring entities based on the success during pilot
implementation. It helps enhance the rollout plan based on the lessons learned
during pilot implementation.

Pilot implementation should serve as a credible demonstration model for other

procuring entities to follow the success. Pilot implementation should not fail due
to common reason resistance which include the fear of loss of skills, loss of
power and absence of personal benefits.

Success of the implementation of e-Procurement depends on many factors.

Some of the major factors are the readiness of the agencies in terms of

49
 willingness and commitment of leadership in the organization to take up e-
procurement, the level of use of information and communications technologies by
the procurement-process-related personnel, and diversity of procurements
carried out by those agencies.

Number of pilot agencies could be up to ten (10), considering their willingness,

commitment to drive e-procurement initiative, volume and value of procurements
carried out annually, and information and communications technologies
readiness:
 representative pilot agencies could be chosen from among the key
spending agencies focusing on volume and value of goods, works and
services procurement

 Procuring entities having procurement packages with specific nature of
procurements (i.e., medical, information and communications
technologies, rations, etc.)

 Procuring agencies already doing some forms of procurement
automation

 Procuring agencies representing geographical reach and including at
least two local governments (only agencies passing the readiness
requirements)

Wider rollout implementation will be carried out based on further assessment of

the procuring entities on their readiness. Government of Ethiopia expects to
complete the pilot implementation of the e-Procurement system carry out all
procurement through the e-Procurement system in those procuring entities by
2020.

3.5: Operations and Management

Regular system maintenance, updating e-Procurement portal content, updating

procurement rules and processes, supporting e-Procurement users, and ensuring
availability of e-Procurement system to its users all the time shall be addressed
through a well-designed operation and management policy. The operation and
management are the responsibility of the FPPA, and the O&M arrangement shall
be made in such a way that the e-Procurement system is up and running all the
time 24/7/365 for procurement transactions, all users are supported by a
helpdesk, and the e-Procurement portal remains always updated with its content
and processes. The FPPA shall coordinate and cooperate with the MOFEC and
MCIT for these operations.

3.6: Third-Party e-Procurement System Audit

Third-party audit provides confidence to the stakeholders using the e-

Procurement system and provides authenticity of the transactions in the system.
An independent third-party e-GP System audit consultant shall review, verify and
validate the e-Procurement system to confirm its security arrangements,
provisions of confidentiality, compliance with the Procurement legislation and e-

50
Procurement guidelines, and other international best practices. The audit should
be carried out at the last stage of pilot implementation and before the operational
acceptance of the e-Procurement system, so that the software developer delivers
the fully robust system. Nationwide roll-out should be carried out only after the
third-party audit and fixing all the issues encountered and identified during the
pilot implementation and through the audit.

3.7 Key Strategic Decisions

1. Fees and Charges on using e-Procurement system for its sustainability

One of the most contentious areas of application is in relation to fees and

charges. It is common in some countries for fees to be attached to online
registration, downloading of bidding documents, and digital certificates, etc. In
these cases, the preferred position is for document download to incur no charge
while bid submission may incur a fee – this is a superior approach because it
does not weaken transparency (anyone can access the bid documents for no
charge), and it probably does not inhibit competition, recognizing that suppliers
incur costs for paper bid submissions regardless.

Following options may also be mandated to raise revenue to fund the operations,
maintenance, and support of the sustainability of the e-Procurement system
through:
a) Transaction or service fee from awarded Bidders,
b) Forfeited security and guarantee amounts,
c) Other Value-Added Services (VAS) like classified Bid notifications through
email or mobile alerts, additional storage for documents, fees for duplicate
contract completion certificate, delivery of paper copy of bidding
documents, trainings on request, etc.
d) Bidders registration and renewal for the use of e-Procurement System,
e) Bidding document download
f) Subscription on number of categories from the e-catalogue, etc.
Fees if charged for the use of an e-Procurement system shall be reasonable in
order not to deter bidders.

2. No Parallel Systems Allowed

A common issue is where the government keeps the door open to paper bids
even while it is implementing e-procurement. Allowing parallel option of traditional
hardcopy bidding process only slows the rate of take-up of the systems and can
defeat the purpose of promoting e-procurement. The case for parallel bidding
options shall be at best discouraged in bidding process. At the beginning,
procuring entities may indicate the procurements to be carried out electronically
or manually in the Annual Procurement Plan, but it should also be noted that not
all items can be subjected to e-procurement at the time of pilot implementation.

51
3. Fit-for-purpose e-Authentication shall be allowed

There are different options for providing authenticity of the users in e-

Procurement System and validating the e-Procurement transactions. A secured
and easy to implement authentication tools, technologies and methods based on
the international best practices shall be used across the e-Procurement system.
Current e-Authentication policy is based on PKI technology which requires
technology neutrality. MCIT is responsible for establishing PKI infrastructure for
the government, which is underway.

4. e-Procurement shall be via a Central Unitary System

In some instances, e-procurement has not proceeded in a coordinated fashion

across a government but is fragmented between ministries, authorities or
departments. A centralized coordinated approach is greatly superior in terms of
cost, efficiency and interoperability. For example, fragmentation multiplies
security costs and weaknesses, and also requires suppliers to deal with multiple
sites. An end-to-end and nationwide unitary e-Procurement system shall be used
for all public entities. Any parallel e-Procurement system in the government
entities shall not be permitted.

5. Standardization Policy for e-Procurement Implementation

One of the weak dimensions among nine dimensions of the e-Procurement

Readiness Assessment was the Standards. Respondents to the questionnaire on
e-Procurement Readiness candidly expressed that there is lack of standards at
different levels and for different essential processes. Government of Ethiopia
shall take policy to use the same procurement methods and processes across the
whole-of-government. Similarly, standards shall be applied in case of e-Standard
Bidding Documents, e-bid templates, methods of evaluation of e-bids, Contract
templates, e-Catalog of common use items, e-Authentication and other items as
felt required for the facilitation of the e-Procurement implementation.

6. Choice of a Pragmatic and Consistent Strategy

It is important that there’s broad agreement on key ingredients guiding a

pragmatic and consistent strategy. This will entail inter alia adoption of a phased
rollout and implementation approach underpinned by some of the following
endorsements:

a) Mandating the use of the e-Procurement system in agencies as per the

appropriate phasing plan. The Parallel bidding (use of both manual and
electronic forms) shall not be permitted for the bidding procedures carried
through e-Procurement System;
b) That e-Procurement based procurement procedures shall be governed by
the e-Procurement Guidelines, which regulates the electronic procurement

52
 procedures after necessary Business Process Reengineering (BPR) of the
manual procurement processes and practices;
c) Amendments shall be made to standard bidding documents and conditions
wherever required to suit e-Procurement;
d) Recognition of online procurement methodologies such as e-Bidding, e-
evaluation, e-Framework Agreements and Contracts, e-Quotations, e-
Auctions and e-Reverse Auctions, e-Catalog, e-Invoicing, e-Audits, and
procurement contracts management using e-Contract Management
functions of e-Procurement System;
e) Mandating centralized online bidder registration as a pre-requisite for
participating in government procurement through the e-Procurement
system, and submission and processing of bid responses through the e-
Procurement system.
f) Protecting the rights and responsibilities of users, bidders, procuring
entities, FPPA, PPPDS, oversight agencies, operation and maintenance
agency, and other stakeholders while using e-Procurement system, e-
Procurement system shall publish its Terms and conditions of use of e-
Procurement system, Disclaimer of consequences of using e-Procurement
system, policy of data protection and confidentiality, intellectual property
rights, codes of practices, and authenticity of electronic transactions and
digital records and documents as legal evidence, etc.

The above shall be codified in the regulations on e-procurement.

7. Private Sector Participation

Private sector participation in Ethiopia looks like it is working pretty well. Private
sector consultation is carried out through the Public-Private Consultative Forum
established that an MOU between Ministry of Trade and Ethiopian Chamber of
Commerce, and interactions take place in regular frequency. Chamber of
commerce is enthusiastic and interested to collaborate in the introduction of e-GP
in the country. A business activation strategy shall be developed in collaboration
with the Chamber of Commerce to incorporate existing suppliers and may also
work with the service industry that supports business applications. The
development of a viable business activation strategy is critical in getting the buyer
community embrace the reform.

8. Risk Management
The e-Procurement system is to be delivered on the basis of a public sector-wide
service, and as such has potential key risk issues from both an internal and from
a client perspective. Active risk management will ensure that procuring entities
and Providers are able to benefit from this service in the knowledge that the
systems and the practices employed provide an appropriate degree of reliability,
efficiency and security. The management of this project and a smooth
implementation is essential to maintain public confidence and the integrity of the

53
service. To this extent, the risk management framework provides a structured
format that reinforces good management practices and aims to minimize
unexpected outcomes. Implementation challenges for this e-procurement project
will come from both inside and outside of government and can include, among
others:

a) Lack of coordination among the key stakeholders, and contribution at the

right time;
b) Misunderstanding by the developer of the true scope of the work, weak
project management by the developer.
c) A developer that does not understand government procurement and
presumes private sector purchasing procedures.
d) Assumptions that e-procurement is simply about technology.
e) Weaknesses in Government contract management, divided ownership of
the program, rigid processes and regulations.
f) Apprehension towards change by public sector staff.
g) Confusion over standards or the emergence of competing environments
and limited interoperability.

There are also significant design and ownership risks. The scope of government
procurement is extensive and varied, ranging from the acquisition of minor items
such as office supplies through to major construction, telecommunications, defense,
hospital supplies and complex services. This supply side, or government
procurement, affects thousands of suppliers, thousands of line items and is usually
managed by thousands of procurement stakeholders within government.

Categories of Risk

a) Compliance Risks: – These are risks arising from noncompliance with

laws, regulations, internal policies and procedures and ethical standards.
b) Financial Risks: - These are risks that result from inadequate financial
management.
c) Operational Risks: - These risks result from inadequate or failed internal
processes, people and systems or external events.
d) Reputation Risk: – Is the possible loss of the reputational capital or
trustworthiness.
e) People Risk: - Is the risk associated with inadequacies in human capital
and the management of human resources, policies and processes
resulting in the inability to attract, manage, motivate, develop and retain
competent resources.
f) IT/Systems Risks: Cyber insecurity and rapid technology changes.

54
CHAPTER 3: E-PROCUREMENT IMPLEMENTATION ROADMAP

1.1 Action Plan

The Action Plan in Table 5 presents major steps for implementation.

Table 5: E-Procurement Action Plan

# Initiative Initiator Priority Action

1
High level High- Immediate  Announce Government’s vision,
sign-off level key goals and objectives,
endorse benefits
ment of  Endorse and prioritize cross-
e- government coordination and
Procure change management.
ment  Establish objectives,
Strategy performance targets and
and oversight, budget.
action
plan
2
Establish FPPA, Immediate  Establish-Procurement Project
Project MOFEC Steering Committee (e-PSC)
support and  Establish e-Procurement
implement Project Management Unit (e-
structures PPMU)
 Create e-Procurement Working
Group (e-PWG) from pilot
agencies
 Initiate Change management
 Establish terms of reference for
e-Procurement System,
consultants, and meeting
schedules
 Develop business model if
required

4
Engage FPPA Short term  Finalize Business, Technical
developer / and functional specifications
suppliers  Finalize phases for rollout
 Advertise for e-Procurement
system Implementation

55
 Consultant
 Evaluate and award e-
Procurement Implementation
contract
 Initiate change management in
pilot agencies
 Establish training facility
 Establish help desk / service
center and advertise to public
and private sectors
5
Management FPPA Short term  Engage e-Procurement
and Technical Project Manager
reporting  Establish reporting formats,
terms of reference and meeting
schedules for e-Procurement,
Steering Committee and Project
Technical Committees
 Establish project milestones
and KPIs
 Establish contract management
oversight requirements
 Establish risk management and
reporting
6
Operational FPPA Short term  Revise existing procurement
e- operational policies and
Procurement harmonize with digital
regulations environment
or  Develop new operational
guidelines regulations and guidelines as
required for digital environment
 Establish e-signature and e-
document policies for the use in
e-Procurement
7
Human Develope Short term  Developer to bring procurement
Resource r, FPPA synchronize officials in batches through
Enablement d with roll- training facility immediately
out before rollout

 activate Supplier Strategy

56
8
Data Centre MOFEC, Medium  If required, create an integrated
Disaster MCIT term Data Centre with additional
Recovery and hardware, software and new
Site FPPA architecture

 Establish Disaster Recovery

Site (DRS) with same
replication of the data center
9
Monitoring FPPA Short term  Develop baseline indicators and
framework and e- gather current –state baseline
PSC data on procurement
performance

 Private sector feedback system

57
 1.2 Implementation Timelines - Phases

The proposed implementation schedule is shown in Table 6. The implementation

phases are a guide rather than a prescription and should be driven by the e-
Procurement Steering Committee.

Table 6: E-Procurement Implementation Plan (2018-2023)

e-Procurement Implementation Plan

2018 2019 2020 2021 2022 2023
No. Project Task Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1 Draft e-Procurement Strategy and action plan development
2 Procurement Status Benchmark Study
3 Establishment of Institutional Structures
3.1 e-Procurement Project Steering Committee (e-PPSC)
3.2 e-Procurement Project Management Unit (e-PMU)
3.3 e-Procurement Working Group (e-PWG)
4 Decision on Business Model Including revenue options
5 Nomination of Pilot entities for e-Procurement
6 e-PSC to Finalize Strategy
7 High level government endorsement and policy announcement of e-GP Strategy
8 Business Process Reengineering
10 Development / update of e-Procurement Regulations
11 Issuance of e-Procurement guidelines
12 Development of e-Procurement Business, functional and Technical requirements
13 e-Procurement System Implementation
13.1 Acquisition / Handover of e-Procurement System to FPPPA
13.2 Primary Data Center establishement
13.3 e-Procurement System configuration, customization or development
13.4 Secondary Data Center establishment
14 Capacity Building
14.1 Benchmark Study visit to countries where e-Procurement in implemented
14.2 Building Capacity of key implementing agency Staff on e-Procurement System
14.3 Building capacity of bidding community and procuring entities
Sensitization and communication of e-procurement to civil society and also top
14.5 level bureaucrats and leaders
15 Development of Training Material and Video tutorials
16 e-Procurement in Pilot Entities
16.1 Formation of Task Teams in pilot entities
16.2 Change management in procuring entities
16.3 Registration of pilot entities
16.4 Imporing existing bidders and Registration of Bidders
16.5 Workflow creation for each of the procuring entities
16.6 Entry of Annual Procurement Plans
16.7 Pilot implementation of e-Procurement System
17 Third Party Audit and fix the issues of e-Procurement System
18 Roll-out of e-Procurement system in all other procuring entities
19 Integration with other e-Services
19.1 Integration or interfacing with IFMIS
19.2 Integration or interface with Tax system
19.3 Integration or interfacing with Company registration
19.4 Integration or interfacing with other services

58
ANNEX I: ETHIOPIA E-PROCUREMENT READINESS ASSESSMENT

1. E-GP Readiness Assessment Analysis

The e-Procurement Readiness Assessment identifies nine (9) key components

for e-procurement readiness as follows in Table 7:

Table 7: e-Procurement Readiness Assessment Components

STRATEGIC FOUNDATIONS COMPONENTS

Institutional Capacity (the capacity 1 Government Leadership (vision, sponsorship,

for government to set directions and resources, stakeholder support and
lead and resource the changes implementation support).
required). 2 Human Resource Management (education,
skills development, expertise and career paths).
Governance (establishing the rules, 3 Planning and Management (strategic planning
management support, performance and re-engineering of management protocols,
monitoring and evaluation to business rules and processes).
support e-GP). 4 Policy (setting intent and guidelines that can be
consistently applied).
5 Legislation and Regulation (supporting rules
and the external and internal monitoring of the
efficiency, performance and compliance).
Business Functionality and 6 Infrastructure and Web Services (reasonable
Standards (sustainable access to, and quality of e-services and their
infrastructure, support services and sustainable development).
common standards to ensure 7 Standards (management, procurement and
accessible, integrated and consistent technical standards to ensure consistency of the
procurement services can be approach to e-GP and interoperability across
established). the systems involved).

Private Sector Involvement 8 Private Sector Integration (suppliers are

(ensuring the private sector is enabled and have incentives to participate in e-
enabled to participate and be GP).
involved in e-GP)
Application of Technology 9 Systems (the planning, selection, development,
(appropriate, integrated, sustainable implementation and support of e-procurement
and modifiable technology is phased systems).
in to provide tendering, contract
management and purchasing
services).

It is essential to appreciate that key issues within these components must be

addressed regardless of how e-procurement is developed or acquired.

E-Procurement Readiness Assessment was based on four levels of readiness as

outlined in Table 8.
 Table 8: Scoring Standard for Subcomponent Readiness Levels
Level of Readiness Description
1 to < 2 (Poor) No evidence that the subcomponent is in
place and no evidence it is supported.
2 to <3 (Moderately Little evidence that the subcomponent is
Satisfactory) in place and little or no evidence it is
supported.
3 to < 3.5 (Satisfactory) Some evidence that the subcomponent is
in place and some evidence it is
supported.
3.5 to 4 (High) Adequate evidence that the
subcomponent is in place and adequate
evidence it is supported.

Numerous observations were made from the discussions with government

officials and other stakeholders. Stakeholders also provided feedback and
recommendations for the implementation of the e-GP system in the country.
Several building blocks for the implementation of e-Procurement are already in
place in Ethiopia, especially few of the achievements and experiences gained
with the implementation of IFMIS and e-Procurement in MICT and Bahir Dar
University are invaluable and has taken substantial time for many other
countries to achieve, for example:

1) The seamless interface and integration with the financial management

system and its transactions;
2) Classification of procurement items – Successfully using the UNSPSC and
CPV classification standards;
3) Catalog of core set of common user items are already in the database,
providing a facility for mapping with the economic code of IFMIS facilitating
budget and expenditure planning;
4) System can be interfaced with external systems, IFMIS, Tax system and
Business Registration system;
5) Transformation among users (procurement entities and suppliers) has
taken place following extensive sensitization and training programs leading
to acceptability;
6) A significant number of Suppliers have been registered through the
Supplier database in FPPA; and
7) Repository database of procurement information and data from past
procurements established.

The overall Level of Readiness (LoR) on nine (9) components was assessed as
moderately satisfactory level with the score of 2.97 out of 4.

Assessment summary is listed in Table 9 and the corresponding relative visual

picture is shown in the radar picture Figure 8.

60
Table 9: e-Procurement Readiness Score Matrix

e-Procurement Readiness Components Level of Readiness

1. GOVERNMENT LEADERSHIP 2.8
2. HUMAN RESOURCE MANAGEMENT 2.7
3. PLANNING AND MANAGEMENT 2.7
4. POLICY 2.5
5. LEGISLATION & REGULATION 3.0
6. INFRASTRUCTURE AND WEB SERVICES 3.2
7. STANDARDS 2.3
8. PRIVATE SECTOR INTEGRATION 3.8
9. SYSTEMS (CURRENT E-GP SYSTEMS) 3.8
Overall readiness score 2.97

The overall Level of Readiness (LoR) on nine (9) components was assessed as
Moderately Satisfactory level with the score of 2.97 out of 4.

Figure 10: Ethiopia e-Procurement Readiness Assessment – 2018

Based on the assessments, Ethiopia is ready for implementing full-fledged end-

to-end e-procurement in both the public and the private sector with the Level of
Readiness Score 2.97 out of 4. The public and private sector, both are
enthusiastic about the benefits of e-procurement and are ready embrace the new
e-Procurement platform.

61
 1) Component 1: Government Leadership

Almost all-international experience is that the foremost essential element for

successful e-procurement implementation is government leadership, including
high level government endorsement of the e-procurement strategy, a national
vision and objectives for e-procurement, and authorisation and resourcing of the
implementing lead agency to drive the required changes. The inclusion of local
government should be considered optimal and is recommended, as the e-
procurement strategy could be implemented in a more innovative manner to
address the local needs through the leverage of popular mobile technology and
procurement practices.

An essential element for successful e-Procurement implementation is

government leadership, which will deliver the sponsorship, endorsement and
authority for the vital ingredients of:

 A vision and objectives for e-Procurement

 Lead agency role definition and coordination
 Procurement management reform and implementation
  Stakeholder activation and commitment (government, business, community)
 Resource support (funding & expertise) for implementation and sustainability
of e-Procurement

The effective operational translation of this leadership is crucial and the

government will need to nominate a lead agency to implement its policy and
manage the risks. A suitable agency may already exist (FPPA, for example, may
be the most appropriate). Lead agency endorsement identifies an authority to
lead and manage the development and operation of the transformations required
for government e-Procurement.

The lead agency will define the need for management and technical expertise
and funding as well as coordination and collaboration across government. The
Cabinet-level sign-off and lead agency establishment are important first steps to
establish leadership, coordination and effective outcomes as well as the
mechanism by which the requisite expertise can be assembled. The lead agency
will require resources and expertise not just in technical areas but also to
undertake change management.

Key observations from the e-GP Readiness Assessment:

1) Government is keen to implement e-Government Procurement.

2) FPPA is leading the e-GP initiative in coordination with the MoFEC and
MCIT.
3) Procurement Proclamation is at the draft stage and allows the use of
electronic procurement
Level of readiness in terms of Leadership is Moderately Satisfactory in: Score:
2.8.

62
 2) Component 2: Human Resources

In most countries’ experiences, computer access and computer training are

crucial components of e-procurement implementation, both for the various layers
of government and for the private sector. In jurisdictions that have successfully
adopted e-GP, there have usually been significant government efforts to make
provision for the education and training of executives, managers and staff with
procurement responsibilities. Education and training should also target private
sector.

Level of readiness in terms of human resources scores Moderately Satisfactory:

Score: 2.7

Key observations from the e-GP Readiness Assessment:

• The assessment feedback suggests that there is a reasonably good level

of IT literacy in government.
• Procurement positions exist in most of the key spending procuring entities
but challenged by a frequent staff turnover.
• Formalized education on procurement is available Staff preparedness for
change is moderate confirming that the strategy for e-procurement will
need to be phased.

3) Component 3: Planning and Management

Generally, planning and management of procurement should be governed by

consistent legislation, informed procurement planning; standard data collection,
processing, analysis, and feedback to national planning, reasonable performance
and compliance indicators, standard bidding documents, and standard processes
apply in procurement and contract management.

There is no adequate confidence that the procurement processes are well

managed in the procuring entities, and there is no spend analysis undertaken on
a whole of government basis because of lack of relevant data collection and its
processing.

Level of readiness in terms of Planning and Management is moderately

satisfactory in: Score: 2.7

Key observations from the e-GP Readiness Assessment:

• Budget Annual Procurement Plans prepared but publication is not

consistent
• There are few sectors with consistent planning and management
practices.
• Procurement data are not easily accessible and available.

63
 • Standard Bidding Documents (SBDs) for most of the procurement
methods are available, but those documents are not consistently used
across the government.

4) Component 4: Policy

The development of policy gives important direction to the procurement

environment and its transformation. Policy should be applied to issues such as
value for money, open competition, risk management, local business, economic
development, public procurement performance, and integrity and ethics. It should
also be applied to the development of e-procurement systems and their interfaces
to other corporate systems. The development of e-Procurement regulation or
guidelines gives important direction to the procurement environment and its
transformation.

From the survey responses it was revealed that there are no widely publicized e-
Procurement strategy and policy of the government in terms of e-Procurement to
be made compliant to the prevalent legislation.

Level of readiness in terms of Policy is moderately satisfactory: Score: 2.5

Key observations from the e-GP Readiness Assessment:

• At the policy level, the government has made decision on the introduction
of e-Procurement in the country.
• Ethiopian e-Governments Strategic Implementation Plan 2020
incorporates the implementation of e-Procurement.
• Open Contracting Data Standards (OCDS) policy is still not in place.
• Governments have some level of policy on ICT and pharmaceutical
procurement.

5) Component 5: Legislation and Regulation

Ethiopia currently follows the Directive issued by the Ministry of Finance and
Economic Development Pursuant to Article 78/2 of the Ethiopian Federal
Government Procurement and Property Administration Proclamation no 649/2009
and Article 19 of the definition of powers and duties of the Executive Organs of
the Federal Government of Ethiopia Proclamation No 471/2005/6 (as amended).
A new proclamation is at the draft stage and expected to be issued soon.

Level of readiness in terms of legislation is satisfactory, but the procurement

legislation should be enacted effectively: Score: 3.0

Key observations from the e-GP Readiness Assessment:

• New Procurement proclamation is still to be passed enabling e-

Procurement in the country.

64
 • High enthusiasm shown under this category of readiness assessment is
because of the New Procurement proclamation being drafted guided by
the full decentralization of the procurement to spending agencies
• Cyber security policy and e-Transaction Policy are in place

6) Component 6: Infrastructure and Web Services

Ethiopia has coverage of network infrastructure with good accessibility that is

quite adequate to support most functions of e-procurement. This coverage is
mainly of major cities and is considered to be affordable in major cities.

Level of readiness in terms of ICT infrastructure and Web Services is High:

Score: 3.2

Key observations from the e-GP Readiness Assessment:

• ICT scenario in the Ethiopia is encouraging.
• IFMIS is implemented across the country, and online tax administration
system is gradually being adapted
• There are already few government web-based e-services available, i.e.
Inter-bank ET Switch enabling http protocol, business registration, etc.
• Most of the ministries and Public entities are well sourced with Internet
connectivity at central level, and challenges in regions.
• Mobile penetration is high, and Mobile network is widespread across the
country, and Internet data service quality is good.
• Most of the ministries have got their own web sites.
• MoFEC and MCIT data centers are well set.

This assessment included preparedness in terms of legal and infrastructural

arrangements, readiness of the stakeholders in terms of their access to ICT tools
and technologies including organizations’ existing ICT initiatives, and the
computing and software systems in place. This includes Internet connectivity, ICT
skills among procurement and management staff, and their adequacy for the
adoption of the e-Procurement. MCIT confirmed that Internet connectivity is
adequate and connects to Counties. Additionally, Government Cloud is being
established for online services like e-Procurement. 3G, 4G mobile data
connectivity is getting cheaper.

7) Component 7: Standards

Of greater importance than the telecommunications network are the

interoperability and middleware standards. A policy directive should require that
application developments be in terms of consistent technical standards, e.g.
Service-Oriented Architecture (SOA). There is already Government
Interoperability Framework (GIF) in place, but that should be well communicated
and used.

Standards for using government email accounts is not there. Symptomatic of this

65
is the common usage of Gmail / yahoo business addresses amongst government
officials.

Level of readiness in terms of Standards is moderately satisfactory: Score: 2.3

Key observations from the e-GP Readiness Assessment:

• There is standard authority and there are various technical groups working
under the authority
• Government has published standard for government services
interoperability.
• PPPDS and other agencies still do not use any procurement category and
item classification standards like UNSPSC, CPV.
• E-signature policy is based on PKI infrastructure, but such infrastructure is
not yet ready for use.
• There are recommended standards for ICT and some other common use
items.
• Use of SBDs are not consistent across the procuring entities.

8) Component 8: Private Sector Integration

Within the private sector, there is extensive capability amongst larger businesses
in the use of computers in their businesses, and they showed enthusiasm for the
introduction of e-procurement.

Survey results reveal that the private sector is adequately consulted on

procurement issues. There are training facilities available, which provide trainings
to government and private procurement professionals.

e-Procurement generally receives positive support from the business community

provided it is presented in a user-friendly fashion. The only reservation to this is
that there may be resistance arising from system security credibility and
enablement of e-Procurement for the MSMEs. The e-Procurement system should
promote transparency and help support enhancing private sector trust in
government and procurement system. Private sector support is very important in
the success of e-Procurement system implementation, adaptation and
sustainability.

The private sector is enthusiastic about the e-GP System and seems ready for
the adoption of e-GP system including making the necessary investment to
ensure connectivity, although there could be challenges to enhance the ICT
capacity of the small businesses.

Level of Readiness in terms of Private sector integration is satisfactory:Score:

3.8

66
Key observations from the e-GP Readiness Assessment:

• There is standard authority and there are various technical groups working
• Private sector consultation is carried out through the Public-Private
Consultative Forum established that a MOU between Ministry of Trade
and Ethiopian Chamber of Commerce, and interactions take place in
regular frequency
• Capacity building initiatives in procurement is not adequate
• E-Procurement is wholeheartedly welcomed by the business community
despite ICT access challenges in case of small business.
• Chamber of commerce is enthusiastic an interested to collaborate in the
introduction of e-GP in the country

9) Component 9: Systems (Current e-GP Systems)

E-GP System should address the spirit and requirements of the public
procurement based on new procurement law and international best practices.
The assessment of this component is based on the use of e-Procurement
systems developed and used by MCIT and BDU.

Level of readiness in terms of Existing system is High: Score: 3.8

Key Observations:

• The e-Procurement systems mostly comply with the prevalent

procurement legislation.
• It is noted that two systems already exist in the country - one developed by
the MCIT, and another by BDU. Initiation of the MCIT e-Procurement
system was developed with an objective to be used, ultimately at the
national level, which is currently used only to address the internal
requirements.
• BDU system is matured and has been used for the last 7 years, and MCIT
system is under pilot testing.
• Both the systems are web based.
• More detailed analysis was prepared comparing both the systems for
recommending to upgrade for using at the national level.

2. List of Participants in the e-GP Readiness Assessment

Participating Public Entities

1. Ministry of Finance and Economic Cooperation

2. Ministry of Communication and Information Technology
3. Ministry of Construction
4. National Bank of Ethiopia

67
 5. Information Network Security Agency (INSA)
6. Public Procurement and Property Disposal Service (PPPDS)
7. Ethiopian Roads Authority (ERA)
8. Addis Ababa University
9. Bahir Dar University
10. Hawassa University
11. Mekelle University
12. Jimma University
13. Pharmaceuticals Fund and Supply Agency (PFSA)
14. Engineering Procurement Directorate, ERA

Participating Bidding Community

1. Ethiopian Chamber of Commerce and Sectorial Association (ECCSA)

2. Alta Computec
3. OMEDAD PLC.
4. Alsam PLC
5. Winner Industrial Engineering

68
ANNEX 2: STRATEGIC OBJECTIVES, KEY PERFORMANCE INDICATORS AND
TARGETS

Table 10: Strategic objectives, KPIs and Targets

No Strategic Key Objectives Key Performance Targets

. Objectives Indicators

1. Improved 1.1 To improve Users, Suppliers Currently the

Governance service delivery to and PEs baseline for the
(Transparent Procuring Entities Satisfaction Levels satisfaction is ―not
Processes (PEs), suppliers known‖.
and and users The specific targets
Accountabilit involved in public aimed at achieving
y) procurement. ―moderately
Satisfied‖ by the end
of 2023.
1.2 To ensure Percentage of 100% of all
transparency in all Invitation to Bids procurement ITBs
procurement (ITB) published are published by
opportunities through e- 2023 in e-
Government Procurement portal
Procurement for all Pilot PEs

1.3 To improve Percentage of 100% Procurement

Accountability in Procurements with decisions are
procurement adequate authority approved with
completed adequate authority
by 2023.

2. Effectiveness 2.1 To minimize Average % reduction in

(Informed the transaction Transaction Cost for average transaction
management, costs associated goods, works costs by the end of
efficient with procurement (repairs and 2022/23.
processes) of goods, works maintenance) and
and services services
calculated
separately
through Reduction in
standardization, transaction cost
Transaction cost for
streamlining and equal to % of total
capital works
the use of e- capital works
Procurement in
expenditure by the

69
the procurement end of 2022/23.
processes within,
and where
appropriate
across agencies
and sectors.
2.2 To maximize Percentage of total 50% of expenditure
value for money expenditure on on Goods works
for government Goods, works (repairs and
expenditure by (repairs and maintenance) and
enhancing the maintenance) and Services in the Pilot
buying power of Services procured PES procured under
the public sector. under e- e-Procurement
Procurement contracts by the end
contract of 2021/22.

Unit Cost Reduction

for Goods, works
(repairs and Average Unit Cost
maintenance) and Reduction of % for
Services under e- Goods, works
Procurement (repairs and
contracts maintenance) and
Services by the end
Fee levels for tender of 2021/22.
management and
contract supervision
and administration
Reduction of 0.5% of
for capital works
total capital works
under e-
expenditure under e-
Procurement
Procurement by the
end of 2022/23.

2.3 To improve Improvement in (i) % increase in the

the auditability of audit ratings in number of
public procurement procurements
procurement transactions audited that are rated
expenditures. satisfactory

(ii) Reduction in the

Timely completion of audit cycle time by
procurement audits x%

70
 Increase in audit Increase in the audit
coverage coverage by x%
2.4 To make Reduction in 20% reduction in
effective use of Transaction Cost average transaction
human resources Savings for Goods, costs by the end of
in the Works and Services 2019/20.
procurement as a measure of the
process. human resources
being freed up for
deployment
elsewhere
3. Economic 3.1 To promote Percentage of 80% by end of
Development competition Tenders and Award 2020/21.
(Competitive among suppliers Notices Published in
ness, while maintaining e-Procurement
investment reliable sources of Portal by the
climate) supply. agencies registered
in e-Procurement
System.
The average Increase of 50% in
number of bids bid numbers by the
received end of 2020/21.

3.2 To be Percentage of 90% of tenders

progressive in the Tender carried out
adoption of e- Competitions carried electronically by the
Procurement. out electronically end of year three
years (by the end of
2022).
This should
be measured by
comparing the
number of tender
competitions carried
out electronically with
the total number of
tender notices
published.
80% of all tenders
Percentage of and award notices
Tenders and award advertised, and
notices advertised tender

71
 and tender documentation
documentation published, on the e-
published procurement web site
electronically by the end of two
years (by the end of
2022). 
This should
be measured by
requiring PEs to
report annually to
FPPA on the total
number of tenders
issued and awarded.


10% of expenditure
on Goods and
Percentage of services should be
Expenditure on supported by e-
common Goods and Framework
Services supported Agreements by the
by e-Framework end of 2021.
Agreements

80% of all
Percentage of procurement
Payments made transactions paid
through e-Payments through the e-
under e- Payment mechanism
Procurement provided by the e-
System Procurement System
by the end of year
Three (by the end of
2021).

There are both financial and non-financial targets estimated. Targets and key
performance indicators are defined for each of the strategic objectives identified.