The document summarizes Costa Rica's experience innovating its public procurement system through the creation of a national e-procurement platform. Some of the key problems with Costa Rica's previous paper-based system included a lack of standardization, integration, and transparency. The national e-procurement platform integrated various procurement stages including supplier registration, bidding, contracting and contract management on a single online system to provide greater efficiency, transparency and oversight of the entire procurement cycle.

1. Contract
Management
Innovation in Public
Procurement:
the Costa Rican Experience

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

4. Starting Point

5. Public Procurement Model
Paper-Based

6. Public Procurement Model
Available IT-Platforms

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”

9. National eProcurement Platform

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

19. Transparency
Open Procurement
Visible
e-Participation

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”

22. Muchas Gracias!