The document outlines a proposal for implementing an e-procurement system in developing countries, emphasizing its importance for ensuring fairness and transparency in government purchasing processes. It details the prerequisites, configuration, major functions, and investment cost analysis required for the system. The conclusion highlights that the e-procurement system will enhance government efficiency, accountability, and interaction within a knowledge-based economy framework.

1. Proposal
for
e-Procurement system
for
Developing country
2015

2. Contents
Ⅰ. Background
Ⅱ. Introduction
Ⅲ. Prerequisites
Ⅳ. Configuration
Ⅴ. Major Functions
Ⅵ. Investment Cost Analysis
14
18
2
Ⅶ. Conclusion
4
6
7
19
* Appendix
1. System Components
2. Related Laws (In Case of Korea)
3. Acronym

3. Ⅰ. Background (1/2)
Government of developing countries is trying to achieve “Knowledge based Economy” from
its “Agriculture based Economy” thru National Economic Development Plan with various
projects including “E-Government and E-Governance”.
Agriculture
Based
Economy
Knowledge
Based
Economy
By 2030
NEDP
III
NEDP
I
NEDP
II
NEDP
IV
E-Government and E-Governance
Education
Human Resource Development
Infrastructure, Equipment and Content
Economic Development
Social Development
Private Sector Development
Rural and Community Access
Legal, Regulatory and Institutional provisions
National Security Law and order

4. Ⅰ. Background (2/2)
“E-Government & E-Governance” is the key project among other various projects because
it will play a brain role for other projects.
E-Government
&
E-Governance
Education
Human
Resource
Development
Infrastructur
e, Equipment
& Content
Economic
Development
National
Security Law
& Order
Social
Development
Private Sector
Development
Rural &
Community
Access
Legal,
Regulatory &
Institutional

5. Ⅱ. Introduction – Needs of e-Procurement system
e-Procurement system is essential for providing guarantee of fairness & transparency for
purchasing quality goods and services needed by government administration.
Needs Explanation
Pursuit of fairness
& transparency
• Ensure transparency through e-Procurement system and guarantee fairness by
hiring qualified suppliers selected through competition
Support of customer-centric
procurement administration
• Increase the satisfaction of public institutions using e-Procurement system by
improving the quality of procured items and widening their selection of items
Change in purchase method
according to demand purpose
• Reduce the time period required for purchase and ensure more administrative
responsibility, competition, fairness and transparency
Expanded purchase service
• Require outsourcing for service & design etc. as one of the core paradigms of
procurement administration
Global trend toward reinforced
e-Procurement
• Emerge as a new paradigm drawing attention from world organizations as well as
individual countries

6. Ⅱ. Introduction – Advantages of e-Procurement system
e-Procurement system will provide government administration E-Gov. readiness, fairness,
transparency, cost reduction, and innovation of purchase process etc.
Advantages Explanation
E-Government readiness
enhancement
• Provide opportunities for citizens and businesses to actively participate in
knowledge-based economy via e-Procurement system
Ensure fairness &
transparency on procurement
• Ensure transparency through e-Procurement system and guarantee fairness by
hiring qualified suppliers selected through competition
Reduce
procurement cost
• Save the cost for the procurement process through applying e-Procurement
system via on-line, e.g. Internet, compared to off-line method
Innovate procurement
process
• Upgrade & innovate the purchase process from off-line & face-2-face interaction
to on-line (Internet) & no-need-of-face interaction

7. Ⅲ. Prerequisites
For deploying e-Procurement system, there are various prerequisites such as preparation of
related law and IT infrastructure and system etc.
Prerequisites Required actions
Law and legislative
provision
• Law & legislative provision for applying electronic document & e-signature
• Law & legislative provision for e-payment procedure
• Amendments of law for procurement process if necessary
IT infrastructure
and
system
• IT infrastructure and network environment
• e-payment system and bank payment system related issues
• National security system and its standardization for encryption and decryption etc.
(PKI based certification system)

8. Ⅳ. Configuration
 Conceptual Diagram
Certification Authority Institution
• Issue Certification
• Validity Verification
Government
• e-Bidding
• e-Contract
• e-tax-invoice
• Monitoring
• e-Signature / Verification
Provider
• e-Bidding
• e-contract
• e-Tax-invoice issue/Receive
• Guide mail / SMS Receive
Internet
I/F DB
e-Signature / Signature Verification
Encryption / Decryption
e - mail
SMS
e - mail
SMS
ERP
e–Procurement system
Purchase
information
Process
Result
Purchase
information
Process
Result
Copy
Contract Print
Tax-Invoice Print
e-Procurement System Configuration (PKI based certificate)

9. Function Other Dept. Purchase Department Provider
Provider
Management
e-Bidding *
e-Contract *
e-Tax Invoice
: Off-line
Unapproved
Application for
registration
Submit
LoginApproval
No
Yes
Provider
Evaluation
Construction /
Purchase
Request
Submit estimate
Make estimate
Notice of
tender
Opening of
estimate
Re-bidding
Evaluation bidding & Award
No
Yes
Yes
Accept
Select
Provider
Check Contract
Registration / e-Signature
Submit documents
Request Contract
Internal Approval
Make a Contract
Check the Document / e-signature
Bidding
No
Issue e-Signature
Check e-Tax InvoiceIn Stock / check Make e-Tax Invoice
Verification Sign
Sending
Printe-Tax Invoice Management
: On-line e-Procurement flow chart
Ⅳ. Configuration
* Note) More detail information on e-Bidding* & e-Contract* described following page.

10. Purchase Request Check
Unit price
contract
Nullity
Bid document
Notice of
tender
Opening of
estimate
Contract request
Make estimate
Submit estimate
Purchase Information
(Contract Information)
No
Yes
No
Yes
Other departments Purchase department Provider
1 2
3
4
5 6
78
9
1. Other departments request
Purchase request to purchase department
2. Check of purchase request
3. Whether unit price contract or not, decide bid or contract
request
4. Make the bid document
※ How to bid
- nominating competition, general bid, reverse bid
private contract
※ How to select successful bidder
- minimum, limited minimum, assessment,
estimate, private contract
5. Notice of tender / estimate request (e-mail, SMS)
6. Make the estimate according to the notice
7. Submit estimate with e-signature (encrypted)
8. Open the estimate by whom is designated (decrypted)
- nullity or selection successful bidder
9. Contract request when successful bidder selected
: e-Procurement system
: Legacy system
 e-Bidding Procedure
Ⅳ. Configuration

11. MRO purchase request Check
MRO
Nullity
Bid document
Notice of
tender
Opening of
estimate
Contract request
Make estimate
Submit estimate
Purchase Information
(Contract Information)
No
Yes
No
Yes
Other departments Purchase department Provider
1
2
3
5
6 7
89
10
1. Other departments request
MRO request to purchase department
2. Check of purchase request
3. Whether MRO or not
4. Whether unit price contract or not, decide bid or contract
request
5. Make the bid document
※ How to bid
- nominating competition, general bid, reverse bid
private contract
※ How to select successful bidder
- minimum, limited minimum, assessment,
estimate, private contract
6. Notice of tender / estimate request (e-mail, SMS)
7. Make the estimate according to the notice
8. Submit estimate with e-signature (encrypted)
9. Open the estimate by whom is designated (decrypted)
- nullity or selection successful bidder
10. Contract request when successful bidder selected
: e-Procurement system
: Legacy system
 MRO Procedure (Market place for frame agreements or unit price)
Ⅳ. Configuration
Unit price
contract
Yes4

12. ProviderContract department
Check
Check
1
No
Yes
Information of purchase
Make contract
Send contract
Contract sign
Purchase Information
Register document
Contract sign
Contract print
2
3
4
5
6
7
8 9
6
1. Make a contract with the registered standard form
2. Send the contract with e-signature (via e-mail, SMS)
3. Check the content of the contract
4. Register the needed documents (e.g. Guarantee securities)
5. Sign the contract with provider’s e-signature
- Use e-mail, SMS to notify the person in charge
6. Check the contract for final confirm and verify the e-signature
- No : When e-signature verification failed
- Yes : When e-signature verification is successful
7. Head office sign the contract with e-signature after reviewing
8. Send the purchase information to the legacy system
9. Provider prints & reads the final contract
: e-Procurement system
: Legacy system
 e-Contract Procedure
Ⅳ. Configuration

13. Procurement Workflow
Web Application Server(Oracle9iAS, iPlanet, Web Logic, JEUS, …)MTS
Security [PKI]
Web Server( IIS, Apache, iPlanet, …)
XML / HTML
Supplier
(IE 5.5 or Higher)
FireWall
ASP JSP
DCOM Java Beans / Servlet
Business Module
Container
ADO Database Connector
Database
(Oracle, SQL Server, …)
EnterpriseApplicationinterface
Legacy System
MIS
ERP
OS(Window 2000 Advanced Server, Solaris, HP – UX)
 S/W Configuration
Ⅳ. Configuration
e-Procurement System S/W Configuration
Provider
Management e-Bidding e-Contract e-Tax Invoice MRO

14.  Network Configuration
Ⅳ. Configuration
e-Procurement System Network Configuration
Provider (B)Outside
D
M
Z
Inside Provider (A)
A person in charge
e-Procurement System Server
ERP
Certification Authority Institution
Internet
DMZ
Management of e-Procurement systemLink of e-Procurement system information
1. Issue Certificate
2. Validation Information
3. Certification Key
Information of Bid / Successful bid
Management of document
Information of Purchase
Tax - Invoice
Tax – Invoice / Bill
Publish / Receipt

15. Ⅴ. Major Functions
Government
Inquiry provider
Information
Request provider
Information
Approve a
provider Info.
Approve of
certificate
Bidding plan
Announcement
Opening of the
estimate
Selection of
Provider
In progress
documents
Completed
document
Make a contract
In progress
documents
Completed
document
User/Authority
Management
Certificate
Management
Notice
Q & A
FAQ
Reference room
Provider Mgt. e-Bidding e-Contract e-Tax Invoice Management
 Government’s side major functions

16. Provider
Own
Information
Request
a modification
Submit of
certificate
Inquiry the Bid
Announcement
Submit of
estimate
Inquiry the result
of bid
In progress
documents
Completed
document
Make a contract
In progress
documents
Completed
document
Notice
Q & A
FAQ
Reference room
Provider Info. e-Bidding e-Contract e-Tax Invoice Management
 Provider’s side major functions
Ⅴ. Major Functions

17. Function Detail Description
e-Bidding
• Make bidding plan
‒ Bidding document
‒ Bidding method decision
‒ Winner selection method decision
• Manage bidding progress
‒ Inquire tender progress list
‒ Inquire detailed tender progress
‒ Evaluation according to winner selection method
‒ Tender opening , Winner selection / Re-bidding / Nullity
• Manage bidding result
‒ Inquire list of bidding result
** Customization work
 for interworking with legacy system
 for bidding method : Ordinary / Selective / Reverse bidding
 for winner selection method : Minimum / Limited minimum / Total assessment /
Private contract / Estimate method
 Detail function
Ⅴ. Major Functions
(* Subject to change depends on user’s requirement)

18. Function Detail Description
e-Contract
• Manage contract form
‒ Contract form Registration / Modification / Deletion
• Make standard contract
• Manage contract progress / completion / statistic
** Customization work
 for interworking with legacy system
 for standard contract HTML + 2D Barcode & Copy detector
 for ordinary contract and for standard contract template generation work etc.
e-Tax Invoice
• Manage buying tax invoice
‒ Making / Modification / Deletion for reverse issuing invoice
‒ Making / Modification / Deletion for issuing invoice
• Manage selling tax invoice
‒ Making / Modification / Deletion for issuing invoice
** Customization work
 for interworking with legacy system
 for summation list print & file download etc.
 Detail function
Ⅴ. Major Functions
(* Subject to change depends on user’s requirement)

19. Ⅵ. Investment Cost Analysis
Subsystem Items Description Costs Remarks
e-Procurement
subsystem
S/W Package /
Customization
• e-Procurement Package / DB, WAS, Web server
• legacy system interworking & customization
Including customization
costs
H/W, N/W
• DB server, Application server,
Interface server, Web server, PC
• SAN switch, Storage, Router, Fire Wall, L4Switch
Maintenance • Shall be determined after discussion
Training
Consulting
• Installation, On-site Training
Sub total
Certification
subsystem
S/W Package • PKI Package / DB, WAS, Web server
H/W, N/W
• DB server, Application server,
Interface server, Web server, PC
• SAN switch, Storage, Router, Fire Wall, L4Switch
Maintenance • Shall be determined after discussion
Training &
Consulting
• Installation, On-site Training & Consulting
Sub total
Total
 Estimated initial investment UNIT : USD
(* Subject to change depends on user’s requirement)

20. Ⅶ. Conclusion
After implementing and deploying of e-Procurement system, government administration
will be capable of improving the E-Gov. readiness, transparency & fairness, efficiency,
effectiveness, cost reduction and accountability of government.
• Procurement system with e
-signature & e-document
• MRO market place & portal
role
• Partial interworking with
major authorities
• Procurement system with
upgraded e-signature &
e-document
• Advanced procurement
system for most of products,
services & construction etc.
• Complete interworking with
all authorities
After deploying
e-Procurement system
In the future

21. Appendix 1. System Components
Subsystem Items Description
e-Procurement
subsystem
S/W Package
• e-Procurement Package /
• DB, WAS, Web server
H/W, N/W
• DB server, Application server,
Interface server, Web server, PC
• SAN switch, Storage
• Router, Fire Wall, L4Switch
Certification
subsystem
S/W Package • PKI Package / DB, WAS, Web server
H/W, N/W
• DB server, Application server,
Interface server, Web server, PC
• SAN switch, Storage
• Router, Fire Wall, L4Switch
(* Subject to change depends on user’s requirement)

22. Appendix 2. Related Laws (In Republic of Korea)
 e-Signature Law
e-Signature Law
Article 2 [Definition] The definition of the term in this law as follows.
① e-document is the in the form of electronic information which is stored, transmitted or
received by data processing system.
② e-signature is the in the form of electronic information to verify signer and to show that the
signer is signing relevant e-document which is attached or logically combined.
Article 3 [e-signature’s force]
② According to the Article 1, in the case of having e-signature, relevant e-signature is one’s
sign or one’s sign with name of the e-document then it is considered that the e-document is
not changed after that is signed.
Article 5 [e-document’s force]
e-document’s force as a document is not denied in any other law, except there is special rule,
with the reason which is written in the form of the electronic type.
Article 6 [e-signature’s force]
② According to the Article 16, e-signature certified by security authority can be shown as one’s
sign or one’s sign with name except another law has the Article which is denied the effect.

23.  e-Trading Basic Law
e-Trading Basic Law
Article 8 [Electronic document storage]
In case the electronic document follows each rules below, it shall have the same effect with storing
that electronic document for the Article 8 (Electronic document storage).
• To read the content of the electronic document
• To be saved or be re-produced with the form of when the electronic document is written or
transmitted / received
• To save the writer, the receiver and the time of transmitting & receiving, in case those kinds of
information are included
Appendix 2. Related Laws (In Republic of Korea)

24.  Acronym
• ADO : Active Data Object
• ASP : Active Server Page
• DCOM : Distributed Common Object Model
• DMZ : De-Militarized Zone
• e-Document : Electronic Document
• e-Government : Electronic Government
• e-Procurement : Electronic Procurement
• e-Signature : Electronic Signature
• ERP : Enterprise Resource Planning
• HTML : Hyper Text Markup Language
• IIS : Internet Information Service
• JSP : JAVA Server Page
• MIS : Management Information System
• MRO : Maintenance Repair Operation
• MTS : Microsoft Transaction Server
• NEDP : National Economic Development Plan
• PKI : Public Key Infrastructure
• XML : eXtensible Markup Language
Appendix 3. Acronym