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GOVERNANCEANDTHEDIGITALECONOMYINAFRICA

TECHNICALBACKGROUNDPAPERSERIES

AdoptionofeGPinAfrica

GOVERNANCEANDTHEDIGITALECONOMYINAFRICA

TECHNICALBACKGROUNDPAPERSERIES

AdoptionofeGPinAfrica

HuntLaCascia,JustinValentine,TravisMells,VineetSurapaneni,KellyFlanagan,MariaDelfinaAlcaide,andMichaelKramer

TechnicalBackgroundPaper:AdoptionofeGPinAfrica

Copyright?2022

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TechnicalBackgroundPaper:AdoptionofeGPinAfrica

iii

Acknowledgments

ThisBackgroundNotewaspreparedundertheleadershipofJamesAnderson(LeadGovernanceSpecialist)andHuntLaCascia(SeniorProcurementSpecialist,GovernanceProcurement),byateamincludingJustinValentine(Valent–ProcurementConsultant),TravisMells(Valent–ProcurementConsultant),VineetSurapaneni(Valent–ProcurementConsultant),KellyFlanagan(Valent–ProcurementConsultant),MariaDelfinaAlcaide(GovernanceDataConsultant),andMichaelKramer(FraudandAnti-CorruptionConsultant).

ThereportbenefitedfromtheinputsofthefollowingWorldBankcolleagueswhokindlyagreedtoserveaspeerreviewers:SundayEseneOsoba,KnutLeipold,KhalidBinAnjum,RajeshKumar,HibaTahboubandCareyKluttzfromtheOpenContractingPartnership.

TheBackgroundNotebenefitedimmenselyfromtheparticipation,assistance,andinsightsfromotherexperts.TheteamisespeciallygratefulforthesupportoftheGlobalGovernancePractice(GGP),theandthepriorworkofgovernance,finance,andprocurementcolleaguesinboththeGGPandOperationsPolicyandCountryServices(OPCS).

WearegratefultoRichardCrabbeforeditorialservicesandMariaLopezforcoverdesign.

iv

Abbreviations

Abbreviation/Term

FullTerminology/Definition

ADB

AsianDevelopmentBank

AFR-E

EastAfrica

AFR-W

WestAfrica

CapEx

CapitalExpenditure

COTS

Commercial-Off-The-Shelf

CPB

CentralPurchasingBody

CSR

CorporateSocialResponsibility

EAP

EastAsiaandPacific

ECA

EuropeandCentralAsia

eGP

ElectronicGovernmentProcurement

eProcurement

Electronicprocurement,referringtotheprocessofrequisitioning,ordering,andpurchasinggoodsandservicesonline

FCV

Fragility,Conflict,andViolence

GDP

GrossDomesticProduct

GNI

GrossNationalIncome

GPPD

WorldBank'sGlobalPublicProcurementDatabase

GUI

GraphicalUserInterface

HW

Hardware

IADB

Inter-AmericanDevelopmentBank

ICT

InformationandCommunicationsTechnology

IDA

InternationalDevelopmentAssociation

IFMIS

IntegratedFinancialManagementInformationSystem

IIAG

IbrahimIndexofAfricanGovernance

IOT

InternetofThings

KPI

KeyPerformanceIndicator

LCC

LifecycleCosting

LPTA

LowestPriceTechnicallyAcceptable

LTA

Long-TermAgreement

v

MAPS

WorldBank'sMethodologyforAssessingProcurementSystems

MEAT

MostEconomicallyAdvantageousTender

MENA

MiddleEastandNorthAfrica

MPB

MultilateralDevelopmentBank

NDI

Non-DevelopmentalItems

OCDS

OpenContractingDataStandard

OECD

OrganisationforEconomicCo-operationandDevelopment

OLC

WorldBank'sOpenLearningCampus

OpEx

OperatingExpenditure

P2P

Purchase-to-Pay

PaaS

Platform-as-a-Service

PFM

PublicFinancialManagement

PII

PersonalIdentifiableInformation

PPP

Public-PrivatePartnership

SaaS

Software-as-a-Service

SAR

SouthAsia

SLA

Service-LevelAgreement

SME

Small-andMedium-SizedEnterprise

SPD

StandardProcurementDocument

SSA

Sub-SaharanAfrica

SW

Software

TCO

TotalCostofOwnership:anestimateofthetotalcostsassociatedwithasolutionoverthewholeoftheoperationallife,includingfinaldisposal

USD

UnitedStatesDollars

VfM

ValueforMoney

vi

TableofContents

1Introduction 1

2eGPDefinitionandSystemCharacteristics 3

2.1eGPBusinessModels 4

2.2eGPSystemAcquisitionApproach 5

3ImpactsofeGPonGovernance 8

4PreconditionsforSuccessfuleGPAdoption 11

4.1ElectronicGovernmentProcurement(eGP)ReadinessSelf-Assessment 11

4.2OpenContractingPlaybook 13

4.3MethodologyforAssessingProcurementSystems(MAPS) 14

5eGPAdoptionProgressAcrossAfrica 17

6SolutionsandRecommendationsforeGPAdoption 24

7Bibliography 30

ANNEXI:AfricanCountrieswithProcurementLawClausesbyProcurementPracticeArea 32

ANNEXII:GPPDKeyTermsandDefinitions 33

ListofFigures

FigureI.E-PublicationandCorruptionCorrelation

FigureII.E-TenderingandCorruptionCorrelation

FigureIII.ReadinessSelf-AssessmentFrameworkOutput(IllustrativeExample)

FigureIV.MAPSAnalyticalFramework

FigureV.NumberofeGPSystemImplementationsinAfricabyRegion/IDA/FCVDesignationFigureVI.AfricanCountrieswitheGPImplementations

FigureVII.RepresentationoftheNumberofeGPModuleImplementationsinAfricabyCountryFigureVIII.Pre-AwardeGPModuleImplementationsbyRegion

FigureIX.Post-AwardeGPModuleImplementationsbyRegion

FigureX.SupportingFeatureeGPModuleImplementationsbyRegion

ListofTables

TableI.AfricanCountrieswithCurrentWorldBankeGPandDataAnalyticsEfforts

TableII.eGPModulesandDefinitionsasDefinedintheWorldBank’sGlobalPublicProcurementDDTableIII.CommoneGPBusinessModelsforDeploymentandOperation

TableIV.SaaS/COTS/CustomBuildSystemAcquisitionConsiderations

TableV.ExternalandInternalChallengestoeGPAdoption–LesothoCaseStudyTableVI.eGPReadinessSelf-AssessmentStrategicFoundationsandComponents

TableVII.FourComponentsoftheOpenContractingReformDesignandManagementFrameworkTableVIII.PotentialeGPImplementationStakeholderGroups

TableIX.eGPFundingStrategyOptions

TableX.CriticalSuccessFactorstoeGPImplementation

9

10

13

15

18

18

19

20

21

22

2

4

4

6

10

12

14

25

27

28

1

1Introduction

TheobjectiveofthispaperistoprovideinformationonElectronicGovernmentProcurement(eGP),adigitaltechnologythatcanhelppublicprocurementorganizationsoptimizespend,improvetheperformanceofsuppliermarkets,andminimizecorruptionintheprocurementlifecycle.Thispaperaimsto:

●DetailtheimpactofeGPongovernance.

●DescribethepreconditionsthatarerequiredforsuccessfuleGPimplementation.

●ProvidecountrycasestudiesthatillustratethebenefitsofeGPimplementation.

●ReviewtheprogressofeGPadoptionacrossAfrica.

●ProvidesolutionsandrecommendationsforcountriesthatareinterestedinupgradingexistingorintroducingneweGPsolutionsand/ormodules.

Publicprocurementiscentraltotheissueofgovernmentcorruption,fraud,andabuse.Publicprocurementaccountsforbetween10percentand25percentofpublicspendingglobally.Corruptioninpublicprocurementisestimatedtoconsumebetween10percentand30percentofcapitalinvestmentprojectcosts,significantlyinflatingtotalcostsanddeliveringlessvaluetogovernmentsandthecitizenstheyserve(WorldBank2020b).Misalignedorimprecisepublicprocurementcanbewastefulandleadtotheacquisitionofsubstandardgoodsandservicesthatcreateunintendedcosts.Bynotmeetingtheactualneedsoftheprocuringentities,misalignedgoodsandserviceseventuallycostprocuringentitiesmorethaninitiallyestimated.Procuringentitiesmayneedtore-procurethesameitems,resultinginincreasedcosts,inordertoreceivethegoodsandservicesthataddresstheirneeds.

AsofMarch2021,theWorldBankwasmanaging47projectswithavalueofoverUS$443.8millionaimedattheimprovementofeGPanddataanalyticssystemswithinclientcountriesglobally.Oftheseprojects,19arelocatedinAfricawithacombinedeGPvalueofUS$250.4millionasshowninTableIbelow.

TableI.AfricanCountrieswithCurrentWorldBankeGPandDataAnalyticsEfforts

Country

Instrume

nt

1

Total

Value

$Million

eGP

Value

$Million

ApprovalFY

Closing

FY

DescriptionofIntervention

BurkinaFaso

IPF

30.0

1.5

2016

2022

P155121–EconomicGovernanceandCitizenEngagementProject,developmentofe-Procurement.

Burundi

IDA

22.0

1.0

2015

2021

P149176–StrengtheningInstitutionalCapacityfor

GovernmentEffectivenessProject.

Cameroon

IDA

31.0

7.0

2018

2023

P151155–StrengtheningPublicSectorEffectivenessandStatisticalCapacityProject.

Coted’Ivoire

P4R

100.0

15.0

2019

2024

P164302–EnhancingGovernmentEffectivenessforImprovedPublicServices,e-Procurementimplementation.

Djibouti

IPF

15.0

9.5

2018

2023

P162904–DjiboutiDigitalTransformationofPublicAdministration,includinge-Procurementcomponent.

Ethiopia

IPF

33.0

3.7

2016

2021

P150922–PublicFinancialManagementProject,

developmentofe-Procurement.

Gambia

IDA

35.0

3.0

2020

2025

P166695–GambiaFiscalManagementDevelopmentProject.

Ghana

IPF

97.0

5.0

2013

2023

P144140–E-TransformProject,pilotingofe-Procurement.

Guinea

IPF

22.0

1.0

2017

---

P157662–EconomicGovernanceTechnicalAssistance&CapacityBuildingAdditionalFinancingProject,developmentofe-Procurementtools.

Kenya

P4R

150.0

21.0

2018

2023

P161387–Governance,developmentandrolloutofe-

1IPF=InvestmentProjectFinancing;P4R=Program-for-ResultsFinancing;IDA=InternationalDevelopmentAssociationGrant.

2

Procurement

Liberia

IDA

19.0

1.5

2019

2024

P165000–IntegratedPublicFinancialManagementReformProjectII,developmentofe-Procurement.

Madagascar

IDA

140.0

56.0

2021

2024

P169413–DigitalGovernanceandIdentification

ManagementSystemProject(PRODIGY).

Malawi

IPF

72.4

4.0

2017

2022

P160533–DigitalMalawiProgramPhaseI:MalawiDigitalFoundationsProject,feasibilitystudyandpilotingofe-

Procurement.

Mauritania

IDA

24.8

5.2

2016

2022

P146804-MauritaniaPublicSectorGovernanceProject

Morocco

P4R

200

10.0

2017

2023

P158346–StrengtheningAgri-foodValueChainsProgram-for-Results,developmentandrolloutofe-Procurement.

Nigeria

P4R

750.0

70.0

2018

2023

P162009–StateFiscalTransparency,Accountability,andSustainabilityProgram-for-Results,rolloutofe-Procurement,anduseofopencontractingstandards.

Nigeria

IPF

125.0

28.0

2018

2023

P163540–FiscalGovernanceandInstitutionsProject,rolloutofe-Procurement,anduseofopencontractingstandards.

SierraLeone

IPF

32.0

3.0

2014

2021

P133424–PublicFinancialManagementImprovementandConsolidationProject,e-Procurementintroduction.

Uganda

IPF

85.0

5.0

2015

2022

P130871–RegionalCommunicationsInfrastructureProgramPhase5,rolloutofe-Procurement.

UnderanewpolicycommitmentforIDA19,

2

theWorldBankwillsupportatleast50percent(38countries)ofInternationalDevelopmentAssociation(IDA)countriestoimplementeGPandconductdetailedprocurementdataanalyticsinordertoincreasetheefficiencyofpublicspendingandmitigatecorruptionrisks.Currently,19IDAcountrieshaveimplementedsomeformofeGP;19additionalcountrieswillbeengagedtoimplementeGPaspartoftheIDA19policycommitment.

2See/replenishments/ida19.

3

2eGPDefinitionandSystemCharacteristics

DefinitionofeGP:ElectronicGovernmentProcurement(eGP)istheuseofatransactionalinformationsystembygovernmentinstitutionsandotherpublicsectororganizationsinconductingandmanagingtheirprocurementactivitiesandrelationshipswithsuppliersfortheprocurementofworks,goods,andservicesrequiredbythepublicsector.eGPprovidesthefollowingpublicprocurementbenefits:

●Compliancewithlawsandstandardsleadingtoimprovedgovernance.

●Improvementindatacollection,analysis,accounting,andmonitoring,potentiallyleadingtoincreasedsavings.

●Standardizationofpublicprocurementprocessesresultinginimprovedeffectiveness.

●Automationandsystematizationoftheprocurementprocesses,leadingtoareductioninprocessingtimesandadministrativecostswhileadheringtointernationallyrecognizedbestpracticeprocurementprinciplessuchasValueforMoney(VfM).

●Reductionofthepricesofprocuredgoodsandservicesasaresultofincreasedcompetition.

●Improvementinproductivitywhilereducingfraudandcorruption.

●Creationofeconomiesofscalewhichimprovelocalandregionaleconomies.

●Increasedparticipationofsmallandmediumenterprises(SMEs)intheprocurementprocess.

●Improvedalignmentwithdevelopmentgoalsaspublicexpendituresarefairerandmorebalanced.

●Improveddecisionmaking-abilitiesbypolicymakers,regulatorsandpractitioners.

●Enhancedenvironmentalsustainabilitythroughreductionintheuseofpaperandpollutingbymeansoftransport.

eGPshouldnotbeconsideredasamonolithic,singlepieceoftechnology,ratheritshouldbeconsideredasanaggregationofdifferenttypesofprocurementmodulesandfunctionalitiesthatarefit-for-purposedesignedtoautomateprocurementprocesses.ThefollowingtableprovidesthenamesanddefinitionsofthemostcommoneGPmodulesusedinsystemsaroundtheworld.

TableII.eGPModulesandDefinitionsasDefinedintheWorldBank’sGlobalPublicProcurementDatabase(GPPD)

3

eGPModuleName

eGPModuleDefinition

eProcurementPlan

Usedtocreateandpublishannualprocurementplansatthebeginningofeachfiscalyear.Thismodulecommonlyallowsbidderstobeawareofthenature,timing,andvolumeoftheplannedpublicprocurements.

ePublishing/Notificationaka(eAdvertisement)

Supportsthepublicationofpublicprocurementadvertisementssothattheseareavailabletoanyinterestedparty.

eTendering/eQuotation

Providesonlinesupportforthesubmissionofbids.

eEvaluation/Awarding

Supportstheelectronicopening(decryption)ofbids,theirpartialorcompleteevaluation,andthenotificationoftheoutcomeoftheprocess.

eReverseAuctions

Provideanonlinereal-timepurchasingtechnique,enablingbidderstosuccessivelysubmitbidsoflowervalue.Thismodulefeaturesmechanismsfortheautomaticevaluationofbids.

eContractManagement

Supportsthemanagementofcontracts.Thismodulecommonlyincludesfeaturestomanagecontractdocumentation,contractamendments,keyperformanceindicators(KPIs),tasks,anddeliverables.

3See/gppd/.

4

eCatalogues

Supportsthecreationofcatalogueworkspacesandtheabilitytobrowseelectroniccataloguesandcreate/managecartofitemstoprocure.

ePurchasing/P2P

Supportthepreparationofrequisitionsandthemanagementofpurchaseorders.OccasionallythismoduleisalsoreferredtoasPurchase-to-Pay(P2P).

eRegistration/VendorManagement

Themanagementofprofiles,attestationsand/orperformanceofsuppliers,contractors,constructors,bidders,etc.conductingbusinesswithpublicsectorentities.

eComplaints

eProcurementsystemmoduletoreceiveandmanagecomplaints.

eSignature

Advancedelectroniccertificateauthentication:useofelectroniccertificatesforsupportingtheuserauthenticationprocess(i.e.login);ORDocumentelectronic

signing:useofelectroniccertificatesforsupportingtheelectronicsignoffofdocumentsuploadedontotheeProcurementsystem(e.g.bids);

ORActionelectronicsigning:useofelectroniccertificatesforsupportingtheelectronicsignoffofcrucialactionsperformedwithinthecontextoftheeProcurementsystem(e.g.contractaward).

eIntergritymodule

Detectsbidirregularitiesforfraudandcorruptionviaautomatedanalyticsandflagsforprocurementofficerstoinvestigate.

eReporting/Business

Intelligence

UsesdatastoredintheeGPsystemtoproducedatavisualizationsofprocurementmetricsandkeyperformanceindicators(KPIs).

Whileeachcountry’sexistingeGPinfrastructureanddeploymentobjectivesareunique,itisrecommendedthatcountriesproceedonanoveralljourneyofincreasedautomationincorporatingtheabovemodulesintoaneventualholisticeGPsystem.

2.1eGPBusinessModels

AscountrygovernmentsconsidereGPimplementations,aninitialfocusshouldbeplacedonthebusinessmodelunderwhichthesystemwillbedeployedandoperate.TableIIIbelowreferencesthemostcommonbusinessmodelsusedbygovernmentstoestablisheGPsystems.

TableIII.CommoneGPBusinessModelsforDeploymentandOperation

eGPBusinessModel

eGPBusinessModelDescription

GovernmentOwnedandOperated

Thegovernmentownsandoperatesthesystem,whichisbuiltbyitsowninformationandcommunicationstechnology(ICT)team.Alternatively,externalpartnersmaybeusedduringthedevelopmentorsupportphasesoftheproject,butthesepartnershavenorightstoanypartofthesystem.Theyarecompensatedfortheirservicesbasedoncontractedfees.

Government-ManagedService

Thesystemisoperated,supported,andownedbyathird-partypartner,butthegovernmentretainsownershipofallthedataandsupportservices,suchasauserhelpdeskandtraining.Adedicatedunitwithinthegovernmentisresponsibleformanagingtheservice,includingtheperformanceofthethird-partypartneraswellasanyothergovernmentdepartmentsthatprovidesupportservicessuchastraining.

Public-PrivatePartnership(PPP)

Thesystemisownedandoperatedbyathird-partyserviceprovider.Theintentionofthismodelisthatatsometimeinthefuture,asspecifiedintheagreement,theservicewillbetransferredtothegovernment.Intheinterim,theserviceprovideriscompensatedeitherthroughafixedmonthlyfeeortransactionalrevenuesbasedontheusageofthesystem.

5

Whenimplementinganyoftheabovebusinessmodels,thegovernmentisexclusivelyresponsiblefordevelopingaplanthatensuressustainability.Long-termsustainabilityoutcomesrelyonpoliticalandleadershipcommitmenttochangemanagementefforts,withalong-termoutlookandfocusonprojectandorganizationalsustainability.Operationsmaybecomesustainablethroughacombinationoffixedcapitalfundingandongoingoperationalrevenuegeneration.Fromahumanresourceperspective,acombinationofgovernmentemployeesandspecialistserviceproviderscanbeusedtoensureseamlessoperations.Theseprovidersmaybeinvolvedinmanyaspectsofthesystem,includingtechnicaloperationsandmaintenance,end-usertraining,andend-usersupportthroughadedicatedhelpdesk.Regularupgradestotheunderlyingtechnologyplatformsshouldbeplannedtoensurethatthesystemcontinuestooperateoveralifetimethatexceedsthatofthephysicaltechnologycomponents.WiththecontinuedevolutionoftheSoftware-as-a-Service(SaaS)businessmodelasastandardinthedeploymentofenterprisetechnologyapplicationsglobally,itcanbeexpectedforthegovernment-managedservicebusinessmodeltocomprisealargershareoffutureeGPimplementations.

2.2eGPSystemAcquisitionApproach

TableIVbelowpresentsasummaryofthekeyattributesofeGPsystemacquisitionapproaches,includingimplementationofaSaaS,commercial-off-the-shelf(COTS),orcustom-builtsolution.

TableIV.SaaS/COTS/CustomBuildSystemAcquisitionConsiderations

4

Attribute

SaaS

COTS

CustomBuild

Quality

●SystembasedonanalreadytestedandusedeGPplatform.

●Vendorhasknow-howonanalyzing,configuring,androllingouteGPsystems.

●Matureproductasafoundationforasystemthatcanbemaintainedvirtually.

●Lowerriskoftechnologicalobsolescence.

●Limitedcustomizationbecauseoftheotherusersoftheplatform.

●Systemmayimposefunctionalconstraintsasitisalreadypre-built.

●Systemmayadoptstandardsthatmaybeincompatiblewithexistinggovernmentsystemsand/orinfrastructure.

●Riskoflock-inbymodulevendors,mitigatedbysimplicityandserviceabilityofmodule.

●SystembasedonanalreadytestedandusedeGPplatform.

●Vendorhasknow-howonanalyzing,configuring,androllingouteGPsystems.

●Matureproductasafoundationforasystemthatcanbemaintainedlocally.

●Lowerriskoftechnologicalobsolescence.

●Systemmayimposefunctionalconstraintsasitisalreadypre-built.

●Systemmayadoptstandardsthatmaybeincompatiblewithexistinggovernmentsystemsand/orinfrastructure.

●Riskoflock-inbymodulevendors,mitigatedbysimplicityandserviceabilityofmodules.

●Softwareisownedbygovernment.

●Softwareisbuiltforpurpose.

●Systemdevelopmentknow-howwouldbeaccumulated.

●GovernmentmayhavedifficultiesinretainingInformationandCommunicationsTechnology(ICT)expertsinitsteamsincetheprivatesectorcanoffermorecompetitivesalaries.

●Thepossibilityofriskstothesuccessofsystemdevelopment.

●Lackofprovenskills(offsetbyincludingforeignspecialists).

●Potentialoffragmenteddevelopmentsbetweenagenciesunlesscarefullymanagedbythesteeringcommittee.

●Moderateriskoflock-inbylocaldevelopers(mitigatedbysystemsportability).

4

/documentation

(E-ProcurementPreparation)plusaddedcaseresearch.

6

●Ifgovernmenthasproven,internalICTcapacity,high-qualityproductcanbeachieved;otherwise,in-housedevelopmentmayberisky.

Time

ofscalecreated

●Coresystemfunctionsarealreadyavailableinthevendor’seGPplatform.

●Veryshortperiodrequiredforrelevantandpracticalfunctionalitytobeoperational.

●Vendormayrequiremoretimethanin-housestafftounderstandthecountry-specificrequirements.

wouldbefor

●Coresystemfunctionsarealreadyavailableinthevendor’seGPplatform.

●Relativelyshortperiodrequiredforrelevantandpracticalfunctionalitytobeoperational.

●Vendormayrequiremoretimethanin-housestafftounderstandthecountry-specificrequirements.

of

●Timerequiredforthedevelopmentoffrom-scratchimplementationcanbeexpectedtobemorethanforaCOTS-basedsystem.

●IfgovernmenthasproveninternalICTcapacity,analysis,development,androlloutofthesystemcanbeachievedinreasonabletime;otherwise,excessivetimemayberequired.

Cost

mustbehostedin

●Economies

byasharedserviceoftenmakeitaverycost-effectivechoice.

●Purchasewouldonlybeforthefunctionalityforwhichthereiscapacitytoutilize.

●Lowinitialimplementationcosts.

●Low-risksystemdevelopmentandmaintenancecosts.

●Governmentwillbecontractuallyboundtothevendorandsystem;ifaclearfinancialarrangementisnotdefinedrightfromthestart,maintenance/evolutioncostmaybelarge.

●Attheendofthecontractualtermwiththevendor,processforcontractingandmigratingtoaneweGPsystemmaybecostly.

behosted

●Purchaseonlythefunctionalityforwhichthereiscapacitytoutilize.

●Lowinitialimplementationcosts.

●Low-risksystemdevelopmentandmaintenancecosts.

●Governmentwillbecontractuallyboundtothevendorandsystem;ifaclearfinancialarrangementisnotdefinedrightfromthestart,maintenance/evolutioncostmaybelarge.

●Attheendofthecontractualtermwiththevendor,processforcontractingandmigratingtoaneweGPsystemmaybecostly.

behosted

●Maintenance/evolutionthesystemwillbecostefficient,sinceallrequiredexpertiserelatedtothesystemarchitecturewillalreadyexist.

●Governmentmayneedtomakespecialfinancialarrangementsforretainingexpertsforthedevelopmentandmaintenance/supportofthesystem.

Security

and

Access

●Solution

vendor’sITenvironment,whichoftenresidesoutsideofclientcountry’sgeographicalborders,whichmayviolatesecurityordataprivacylaws.

●Solutioncanon-premisesorindomesticcloudtocontrolaccessandconformtonationaldataprivacylaws.

●Solutioncanon-premisesorindomesticcloudtocontrolaccessandconformtonationaldataprivacylaws.

7

Acountry’scurrentandforecastedITtechnicalcapacityisalsoanimportantfactorinconsideringdifferenttypesofsystemacquisitionmodels.SaaSsystemsaretheeasiesttomanageovertimeasthemajorityofthesystemIPandsupportresideswiththesystemproviderorathirdpartyserviceprovider.COTSsystemsmayrequiremorein-houseITexpertisetomanagethesystemandanycustomizations.Custom-builtsystemsrequirethemostinternalITcapacityasthesystemsmustbemaintainedbytheimplementingagencyandmeetoperationalstandardssuchascontinuousuptime,whichrequiresbothtechnicalexpertiseandpersonnelresources.ArmedwithabetterunderstandingofeGPfrombothadefinitionalandsystemattributeperspective,governmentscanproceedtolookathoweGPdirectlyimpactsgovernanceandsomeofthechallengeseGPimplementersfaceduetothatimpact.

8

3ImpactsofeGPonGovernance

eGPhasthepotentialtohaveasignificantpositiveimpactongovernance.Thisimpactcanbeattributedtothecloserelationshipbetweenprocurementandgovernance.Publicprocurementaccountsforbetween10percentand25percentofglobalpublicspendingand,cumulatively,governmentsspendUS$10trilliononpubliccontractseveryyear(WorldBank2020).eGPis,bydefinition,avitalcomponentofhowgovernancemaintainslegitimacyanddeliversservicestocitizens.

Whilepublicprocurementvariesamonggovernment