Electronic Public Procurement in Turkish Public Procurement System

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• Electronic Public Procurement in Turkish Public
  Procurement System

M. Çagatay TASYÜREK
cagataytasyurek_at_kik.gov.trPublic Procurement
Specialist Public Procurement Authority
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Agenda
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Turkish Public Procurement System (TPPS)

• Turkish Public Procurement Sytem has four
  historical background dates
• 1) Auction, Contest and Tender Law no 661 dated
  22 April 1925
• 2) Auction and Tender Act no 2490 dated 10
  December 1934
• 3) State Tender Law no 2886 dated 08 September
  1983
• 4) Public Procurement Law (PPL) no 4734 dated 04
  January 2002

PPL has created an advanced model of
international procurement regulations.
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Turkish Public Procurement System (TPPS)

• Currently, Public procurement is regulated by
  Public Procurement Law No. 4734 which entered
  into force on January 1, 2003.
• One of the objectives of preparing a new law on
  public procurement was adaptation to
  international instruments on public procurement
  (EU Procurement Directives, UNCITRAL Model Law on
  Procurement, World Bank Procurement Guidelines,
  etc.).

Public Procurement Law no. 4734
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Turkish Public Procurement System (TPPS)

• Main Principles of PPL are

Transparency
Reliability
Fullfillment of Needs
Efficient Use of Resources
Competititon
Confidentiality
Equal Traetment
Public Supervision
Taxpayers Expectations
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Public Procurement Authority (PPA)

• Public Procurement Authority which is
  administratively and financially autonomous was
  established in 2002.
• The main duties of the PPA are

Regulation
Dispute Resolution
Training
E-Procurement
Gathering Information and Statististics
International Relations
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• E-Procurement

Effective Procurement System
Sustainability
Therefore, E-Procurement has a crucial role in
procurement system
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E-Procurement in Turkey Electronic
Public Procurement Platform (EPPP)

• Electronic Public Procurement Platform (EPPP)
  became operational on 1 September 2010.

• Operations that can be performed in EPPP, include
  publication of contract notices, preparation of
  contract document by the contracting authorities,
  downloading of the contract document by economic
  operators, verification of tax liability, balance
  sheet and income statement information, social
  security premium debt information of the economic
  operators.

• EPPP which is one of the most important
  e-government applications with over 30.000
  registered economic operators, 25.000 registered
  contracting authorities and 400.000 registered
  users is being continuously improved.

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Electronic Public Procurement
Platform Legal and Administrative
Background

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Electronic Public Procurement
PlatformDevelopment Stages

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EPPP by Numbers
01 September 2010 31 December 2012 EKAP
Registered Economic Operators (EO) 30.000
Registered Contracting Authorities (CE) 25.000
Registered Users 400.000
Registered Tenders 500.000
Contract Notices Published 250.000
Black List Confirmations 1.400.000
Contract Award Notices 500.000
Daily Hit of EPPP 90.000
Total Number of Visitors 40.000.000
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BENEFITS OF ELECTRONIC PUBLIC PROCUREMENT
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e-Procurement in 7 Steps
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1
2
3
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e-Signature / Encryption / Digitalization
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Procurement Procedures on the
EPPP

• Preparation of tender documents
• Contracting authorities that are registered
• on the system started to prepare the tender
• documents (pre-qualification documents,
• administrative and technical specifications,
• the draft contract, framework agreement,
• individual contract, standard forms) through
• EPPP.
• Errors are reduced to a minimum level in
• the tender documents through automatic
• checks by EPPP for compliance with
• legislation.

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Procurement Procedures on the EPPP

• Preparation of contract notices
• Contract notices began
• to be created automatically
• by the system when the
• tender documents are
• prepared by the contracting
• authorities.
• Economic operators have
• access to contract notice
• and documentation
• in electronic environment.

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Procurement Procedures on the
EPPP

• Downloading of of tender documents using
• e-signatures/m-signatures
• The tender document can be
• downloaded free of charge via EPPP
• by using e-signatures or m-signatures,
• which eliminates the need for
• economic operators to go to the
• contracting authorities to purchase the
• tender document.

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Procurement Procedures on the
EPPP

• Tender Search Mechanisms
• Real and legal persons who wish to participate
• in tenders may search for tender notices by
  setting
• certain criteria (sector, province, remaining
  period
• of tender date and tender type).
• Also they can be notified instantly via e-mail,
• about tender opportunities they may be interested
  
• in.
• Citizens can also search for tenders by three
• different ways according to their needs Fast
• Search, Detailed Search and Sectoral Search.
• They can see tender notices and contract award
• information of the tender.

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Procurement Procedures on the
EPPP

• Tender At a Single Glance
• Every detail of all public tenders carried out
• within the scope of Public Procurement Law, such
• as contract notice, contract document,
  information
• about the contracting authority, contract award
• notice, complaints by dissatisfied tenderers,
• black list confirmation, contract price and
  contract
• lots, can be seen in Tender at a Single Glance
• webpage within the EPPP.
• Thanks to this, public supervision is ensured in
• the public procurement system.

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Procurement Procedures on the
EPPP

• Tender Evaluation Records
• Tender evaluation
• records are prepared
• by the contracting
• authorities by using
• EPPP.

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Procurement Procedures on the EPPP
Electronic submission of tenders in the pilot
sector

• For Procurement of medical devices, which has
  been identified as a pilot sector, all
  procurement procedures including the electronic
  submission and electronic evaluation stages, can
  be done in paperless electronic environment.

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Procurement Procedures on the
EPPP

• Inquiries from related systems
• Contracting authorities can query tax
• liability, balance sheet and income
• statement information of economic
• operators over the Revenue
• Administrations system and social
• security premium debt information over
• Social Security Institutions system.

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Electronic Public Procurement Platform

• Integration of EPPP with Other Institutions

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Procurement Procedures on the EPPP

• Blacklist Confirmation and PPA Decisions
• Contracting Authorities and citizens
• Can access to the black list of economic
• operators and decisions taken by the
• Public Procurement Board upon
• complaint applications.

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Procurement Procedures on the
EPPP

• Submission of contract award information
• Contract award notices are
• prepared, published and can be
• viewed by using EPPP.
• All notifications can be sent to
• economic operators through EPPP.

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Procurement Procedures on the
EPPP

• Contract Management
• Applications in EPPP were put into
• use regarding contract management
• issues, such as additional works or
• services, price adjustment (escalation),
• termination of contract, issuing
• certificates of satisfactory performance
• of the contract in order to collect data
• on signed public contracts, to do
• analysis on a sound basis and to
• digitize contract management process.

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Benefits (Realized)-1
Contracting Authorities
Savings due to printing of tender documents (yearly) (350.000 tender documents, avg. 50 pages, cost per page0,2 TL) 3,5 million TL (1,5 million )
Time savings (yearly) (11 person/day, daily cost 50TL, 150.000 tenders annually) 82,5 million TL (37 million )
Contract Value Savings (Contract Value/Estimated Cost Ratio decreased from 81 to 74, average number of tenders submitted increased from 3.3 to 5.6) Approximately 1,3 billion TL annually
TOTAL REALIZED SAVINGS (yearly) 1,4 billion TL (600 million )
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Benefits (Realized)-2
Economic Operators
Savings due to tender document acquisition (yearly) (350.000 tender documents document price) 54 million TL (24 million )
Transportation savings (yearly) (350.000 tender documents 10 TL/tender document) 3,5 million TL (1,5 million )
Time Savings (yearly) (350.000 tender documents 1 man/day35 TL daily) 12,2 million TL (5,5 million )
TOTAL REALIZED SAVINGS (yearly) 69,7 million TL (31 million )
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Business Intelligence

• Business intelligence within the EPPP was put
  into use in 2013 and instantaneous access to a
  huge amount of data was achieved.
• Objectives of the business intelligence are as
  follows
• To gather statistical data about public
  procurements for the analysis of business
  processes,
• To standardize analysis of public procurement
  data and development of public procurement
  reports,
• To retrieve statistical data faster, instantly
  and up-to-date,
• To provide procurement data to the other units of
  PPA in a more efficient way,
• To provide statistical information within the
  scope of The Right to Information Law No. 4982
  to the applicants,
• To provide information about procurements to
  contracting entities, economic operators and
  public in a visually rich and dynamic way,
• To improve public procurement processes by
  employing data mining,

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Business Intelligence
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Future Developments

• E-Procurement in goods and call-off stages of
  framework agreements
• E-catalogs and digitalization of procurement
  items
• E-Contract Management
• E-Auctions

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Future Developments

• Certification/Registration Systems
• Secondary Legislation
• Certification Units
• Audit Mechanisms
• Other Integrations (such as judicial records)
• Business Continuity Center/Disaster Recovery
  Center

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Integrated Appeal, Review and Board
Project

• Appeals will be submitted over EPPP with the
  e-signatures of the related party.
• All necessary information related with a
  complaint will be retrieved electronically where
  possible, other documents will be scanned.
• The result of review by public procurement
  experts will be digitally signed by e-signatures
  and presented to the Board.
• Board Agenda will be prepared electronically.
• Board Members will be able to access to the
  documents electronically.
• Board Members will sign the decisions by their
  e-signatures.
• The notification of the decision of the Board
  will be sent automatically and electronically.

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• THANK YOU