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Contract
Management
Innovation in Public
Procurement:
the Costa Rican Experience
About us
Alicia Avendaño
Waldemar Núñez
•eGovernment Director &

Complex IT Project Director
•Academic & 

Public Procurement Expert
Ileana Palaco •International Relations
Costa Rica
Central America
5 Million
National GDP: 

USD $45.13 Billion
Starting Point
Public Procurement Model
Paper-Based
Public Procurement Model
Available IT-Platforms
Problems
No standardization of procurement documents and processes.
Lack to enable price-referencing,benchmarking mechanisms or supply
industry analysis,due to the use of different codifications (goods and
services classification codes) and not-integrated supplier registration
database
Different procurement proceedings in each entity,lack of international
standards such as product code ,terms of reference forms,business
documents and transactions as a result of fanciful interpretations or
ignorance of the applicable regulations.
Multiplicity of regulations and procedure manual,depending on the entity.
Multiple investment and disintegrated use of IT platforms.
Duplication of requirements and procedures for supplier registration through
different institutions.
Lack of process reengineering,standardization and simplification,due to
excessive requirements that must be met depending the institution.
“
”
(Costa Rica, Public Expenditure Review, Enhancing the Efficiency of Expenditures, IDB/WB, 2009)
–Barahona, CLADS, INCAE Business School, 2008
“20 companies accounted for 40%
of all public purchases (…) there
were too many processes and too
few bidders”
National eProcurement Platform
Public Procurement Model
National eProcurement System
www.mer-link.go.cr
Public Procurement Distribution
(SIAC, 2013)
State Owned Telco (ICE)
Executive Branch
Health & Social Security (CCSS)
Education Boards
Decentralized Entities
Other Agencies
National Banks
Municipalities
Universities
Judicial Branch
– Recommendation on Enhancing Integrity in Public
Procurement, OECD, 2012
“only half of OECD countries indicated that their
procurement reforms addressed the whole
public procurement cycle, from needs
assessment throughout tendering until contract
management. In particular, few countries have
taken active steps to supervise contractors’
performance and integrity, which is left at the
discretion of the contracting authority”
Procurement Stages & Scope
Planning:Identification of Required Goods&Services
Supplier Registration
Product Registration
BudgetValidation
Selection: Seeking the Best Proposal & Selecting It
Terms & References
Publication + Invitation
Assessment
Awarding
Execution/Contract Management: Receiving & Verifying the Product, Paying,
Warranty Compliance
Delivery & Logistics
ProductVerification
Warranty
Public Procurement Cycle
Goods &
Services
Reception
Single Supplier
Registration
Contract
Payment
Goods & Services
Catalogue
Awarding
Assessment /
Evaluation
Bidding
Terms of
Reference
Planning
Supplier
Performance
Evaluation
Contract
Conclusion
Contract
Expansion /
Modification
Best Practice + Collaboration
Single Supplier
Registration
ContractGoods &
Services
Reception
Payment
Supplier
Performance
Evaluation
Goods & Services
Catalogue
Awarding
Assessment /
Evaluation
Bidding
Terms of
Reference
Planning
Contract
Expansion /
Modification
Contract
Conclusion
•Claims
•Work Flow
•Transparency•Digital Certification
•UNSPSC + Specs Tab
•e-Form
•Budget Validation
•Data
•e-Bid
•e-Bond
•Workflow
•Transparency
•e-Contract
•e-Form
Contract Management
Single Supplier
Registration
ContractGoods &
Services
Reception
Payment
Supplier
Performance
Evaluation
Goods & Services
Catalogue
Awarding
Assessment /
Evaluation
Bidding
Terms of
Reference
Planning
Contract
Expansion /
Modification
Contract
Conclusion
Administrative

Sanctions /
Dispute /
Procedures
•Traceability
•Transparency
•Added Value
•Efficiency
Traceability
Whole Procurement Cycle:1 single record
Legal
Support for Dispute Resolution
Efficiency
Process & Cost Benefits
Environment Protection
Enhanced Productivity
Powerful Procurement Policy-MakingTool
Transparency
Open Procurement
Visible
e-Participation
Added Value
Not an IT Platform -> a Service
Business Intelligence
–Partnership for Public Service / IDEO
“INNOVATION.-the process of
improving, adapting or
developing a product, system or
service to deliver better results
and create value for people”
Muchas Gracias!

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20130815 ippc 2014

  • 2. About us Alicia Avendaño Waldemar Núñez •eGovernment Director &
 Complex IT Project Director •Academic & 
 Public Procurement Expert Ileana Palaco •International Relations
  • 3. Costa Rica Central America 5 Million National GDP: 
 USD $45.13 Billion
  • 7. Problems No standardization of procurement documents and processes. Lack to enable price-referencing,benchmarking mechanisms or supply industry analysis,due to the use of different codifications (goods and services classification codes) and not-integrated supplier registration database Different procurement proceedings in each entity,lack of international standards such as product code ,terms of reference forms,business documents and transactions as a result of fanciful interpretations or ignorance of the applicable regulations. Multiplicity of regulations and procedure manual,depending on the entity. Multiple investment and disintegrated use of IT platforms. Duplication of requirements and procedures for supplier registration through different institutions. Lack of process reengineering,standardization and simplification,due to excessive requirements that must be met depending the institution. “ ” (Costa Rica, Public Expenditure Review, Enhancing the Efficiency of Expenditures, IDB/WB, 2009)
  • 8. –Barahona, CLADS, INCAE Business School, 2008 “20 companies accounted for 40% of all public purchases (…) there were too many processes and too few bidders”
  • 10. Public Procurement Model National eProcurement System www.mer-link.go.cr
  • 11. Public Procurement Distribution (SIAC, 2013) State Owned Telco (ICE) Executive Branch Health & Social Security (CCSS) Education Boards Decentralized Entities Other Agencies National Banks Municipalities Universities Judicial Branch
  • 12. – Recommendation on Enhancing Integrity in Public Procurement, OECD, 2012 “only half of OECD countries indicated that their procurement reforms addressed the whole public procurement cycle, from needs assessment throughout tendering until contract management. In particular, few countries have taken active steps to supervise contractors’ performance and integrity, which is left at the discretion of the contracting authority”
  • 13. Procurement Stages & Scope Planning:Identification of Required Goods&Services Supplier Registration Product Registration BudgetValidation Selection: Seeking the Best Proposal & Selecting It Terms & References Publication + Invitation Assessment Awarding Execution/Contract Management: Receiving & Verifying the Product, Paying, Warranty Compliance Delivery & Logistics ProductVerification Warranty
  • 14. Public Procurement Cycle Goods & Services Reception Single Supplier Registration Contract Payment Goods & Services Catalogue Awarding Assessment / Evaluation Bidding Terms of Reference Planning Supplier Performance Evaluation Contract Conclusion Contract Expansion / Modification
  • 15. Best Practice + Collaboration Single Supplier Registration ContractGoods & Services Reception Payment Supplier Performance Evaluation Goods & Services Catalogue Awarding Assessment / Evaluation Bidding Terms of Reference Planning Contract Expansion / Modification Contract Conclusion •Claims •Work Flow •Transparency•Digital Certification •UNSPSC + Specs Tab •e-Form •Budget Validation •Data •e-Bid •e-Bond •Workflow •Transparency •e-Contract •e-Form
  • 16. Contract Management Single Supplier Registration ContractGoods & Services Reception Payment Supplier Performance Evaluation Goods & Services Catalogue Awarding Assessment / Evaluation Bidding Terms of Reference Planning Contract Expansion / Modification Contract Conclusion Administrative
 Sanctions / Dispute / Procedures •Traceability •Transparency •Added Value •Efficiency
  • 17. Traceability Whole Procurement Cycle:1 single record Legal Support for Dispute Resolution
  • 18. Efficiency Process & Cost Benefits Environment Protection Enhanced Productivity Powerful Procurement Policy-MakingTool
  • 20. Added Value Not an IT Platform -> a Service Business Intelligence
  • 21. –Partnership for Public Service / IDEO “INNOVATION.-the process of improving, adapting or developing a product, system or service to deliver better results and create value for people”