Marie-Josée Linteau Procurement Executive Director Government of Quebec June 2006

1. E- PROCUREMENT The Quebec Government Experience Marie-Josée Linteau Procurement Executive Director Government of Quebec June 2006

2. Presentation Plan • Presentation of the Organization • Procurement Consolidation • E-Procurement • The Current Procurement Portal • Navigation Modules for the Procurement Portal • The E-Commerce Market of Tomorrow

3. Presentation of the Organization

4. The « Centre de services partagés du Québec » • A new approach to sharing processes, technologies, knowledge and expertise • To promote and have administrative goods and services accessible to public agencies • Through consolidating and grouping needs • To optimize these services and reduce costs • By ensuring that internal expertise on administrative services is shared and developed

5. Procurement General Directorate (PGD) • A Government agency in operation since 1938 • Specialized in negotiating contracts, setting up procurement groups and the disposal of excess goods • A multidisciplinary team specializing in the acquisition of goods, services and information technologies • Specialists who are constantly concerned with accessibility, fairness and transparency • Responsible for applying the ecologically responsible procurement policy

6. Procurement General Directorate (PGD) • Major Mandate • Consolidate procurement power and simplify the procurement process in order to: • Generate economies of scale and processes • Facilitate suppliers’ access to government contracts • Facilitate access to excess goods • Current Business Volume of $411 million: • $296 million in consolidated procurement • $115 million in purchases, mandated by clients

7. Consolidated Procurement

8. Consolidated Procurement • 25 IT groups • (microcomputers, printers, servers, etc.) • 71 goods and services groups • (press review, printing, moving, etc.) • 2,100 suppliers registered in the Portal • Purchasing Guides (information on purchasing terms and conditions) in electronic mode only

9. Economies of Scale • Periodical analysis of the economies of scale achieved through procurement groups • Information sheets on savings are published in purchasing guides • Methodology checked by specialists in research and internal auditing

10. Overall Results of Economies of Scale as of March 31, 2006

11. E-Commerce

12. Statistics Business to Consumer (B2C) * in 2003 World $270 billion USA $135 billion Canada $2.1 billion Québec $233 million * Statistiques Canada and « Journal du Net »

13. … Statistics Business to Business (B2B) * in 2004 World $5,900 billion USA $2,700 billion Canada $26 billion * Statistiques Canada , Journal du Net and Déclic.net, Gartner Groupand Forrester

14. Situation in Canada • Internet sales hit $19 billion in 2003, 40% more than in 2002 • Internet retail sales were $6 billion in 2003, representing a 51% increase • Inter-business e-commerce reached $13 billion in 2003, a 35.2% increase • *Study on E-commerce and Technology (SECT) 2003

15. … Situation in Canada Percentage of Businesses using Internet to sell their products and services Manufacturing Businesses 12% Wholesaling Businesses 14% Retail Businesses 11% Cultural Businesses 22% Education Businesses 14% All others 27% *Estudy on E-Commerce and Technology (SECT) 2003

16. Situation in Québec • On February 2005, 1/3 of Quebecers visited a Provincial Government Web site, 25% more than on February 2004 (*) • 1/3 of Web surfers used Internet as a source of information on health, representing a 24% increase. • In 2005, more than 4 Quebecers out of 10 (42.9%) consider that online purchases are secure, and 9.7 % of adults have bought something on the WEB • * Infomètre Cefrio

17. The Procurement General Directorate Procurement Portal

18. The Procurement General Directorate Procurement Portal • Objectives • To facilitate public acquisitions • To provide access to detailed information on procurement consolidation (procurement guide) • To offer online ordering for a variety of goods and services with chosen suppliers • To quickly provide management information to client organizations and the Procurement General Directorate

19. History

20. Technological Infrastructure • Upgraded in 2002 • Multiple prices-products-suppliers • Configuration interfaces for the options • Suppliers updated products, services, and prices • Much improved navigation and search engine

21. … Technological Infrastructure • 3 dedicated servers: • One for development • Two for production (WEB Access and SQL database) • Commerce server 2000 (Microsoft) • Crystal report 10 • Windows 2000 • Visual basic 6.0 • SQL server 2000 • Biztalk 2002

22. Rech. FIRMS Clientele Portal Clients Paper orders Electronic orders • Other applications: • Electronic call for tenders system • (ECTS) Suppliers PGD Catalogues • Directories • Buying groups Current Acquisition Process • PGD Procurement Portal • Configurator • Buying Guide • Electronic exchange of information (XML) Government ERP • FIRMS Clientele: • Departments and agencies • Suppliers • Portal Clientele: • Health network • Education network • Municipalities • Citizens • Suppliers

23. Products and Services That Can Be Ordered On Line • Nearly 35,000 articles are available, many of which can be ordered on line from suppliers: • Office supplies and furniture • Training courses • Heavy equipment rental • Car rental • Hotel room reservations • Conference room reservations • Repair service for chairs, partitions, and furniture • Printing service for pamphlets and envelopes

24. … Products and Services That Can Be Ordered On Line • Microcomputers • Servers • Ink cartridges • Products and services related to cell phones • Pagers • Software from a variety of manufacturers • Lubricants and grease • Lighting products

25. Target Clientele • Quebec Government Departments and Agencies • Health and Social Services network (hospitals and social services organizations) • Education network (universities, colleges and school boards) • Municipality network (municipalities and related organizations) • 7,400 potential customers, half of which use the portal on a regular basis for consultation or ordering

26. Use Statistics

27. Challenges of Implementation • The varied needs and interests of our clientele • Uniformizing the presentation structure of consolidation procurement groups • Maintaining an interesting and dynamic visual presentation • Data integrity (articles and prices corresponding to those in supplier contracts) • Maintaining client interest (regular and targeted updates with a limited budget) • The complexity of updating

28. … The Challenges of Implementation • The involvement of suppliers • Uniform management of very different services • Adjustments to the procurement process • The obligation to use the portal exclusively on procurement consolidated orders

29. Navigation Modules Procurement Guide Ordering Microcomputers Ordering Supplies

30. The E-Commerce Market of Tomorrow

31. Electronic Market • Multi-organization, multi-network, multi-media, multi-product, multi-service platform • Extensive informational content on new and used products • Transactional tool that facilitates and standardizes the acquisition processes • Technology that allows interoperability with a variety of Enterprise resource planning (ERP)

32. XML Link Single access point Clientele orders Catalogue updates Suppliers’ Catalogues CSPQ Catalogues Suppliers Future Acquisition Process Electronic exchange of information • Electronic Market • CSPQ Products and Services • Acquisitions of goods and • services • Mail and messaging • Government reproduction service • Distribution and marketing of publications • Telecommunications services Government ERP Other applications (*) • Clientele: • Departments and agencies • Health network • Education network • Municipalities • Citizens • Suppliers • (*) • Electronic Calls for Tenders System (ECTS) • Electronic Bid System (EBS) • Surplus Valuation System (SVS)

33. Conclusion • The electronic way of procurement is a business solution that: • Promotes the re-evaluation of public procurement strategies • Automates the purchase of a larger number of products and services • Allows access to a bigger client-base • Promotes economies of scale and economies of process for clients and suppliers • Facilitates quick access to valid information management

34. Questions ?