Challenges in Chilean E-Procurement System: A Critical Review

Challenges in Chilean E-Procurement System: A Critical Review

Guillermo Burr Ortuzar (ChileCompra, Chile), Elena Mora Sevillano (ChileCompra, Chile), Claudio Loyola Castro (ChileCompra, Chile) and Catalina Uribe (ChileCompra, Chile)
DOI: 10.4018/978-1-5225-2203-4.ch008
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Abstract

ChileCompra (CC) is the procurement authority of Chile. Purchases are made independently by the public entities, but CC is responsible for market regulation and management of the electronic platform, where transactions are made. ChileCompra was launched on 2003, within a deep State modernization process which started by the end of the 90s. ChileCompra was born with the mission of generating a substantial change in public procurement, as the previous system was neither responding to market needs nor to the accountability which citizens demanded. The objective was the creation of a transparent, efficient, and – most of all - accessible system, which would create equal business opportunities to companies of all sizes, especially for micro and small ones. ChileCompra manages the public procurement market, facilitating the acquisition of goods and services for public authorities; with high levels of transparency and equal opportunities for every enterprise, especially the smallest ones. Through the electronic platform www.mercadopublico.cl – which is the biggest electronic marketplace in the country – public organizations are connected to suppliers within a transparent and efficient system based on a solid regulatory framework whose governing principles are universality, accessibility, and non-discrimination. ChileCompra is currently a strong system, with high levels of transparency and efficiency. As other public procurement national systems, ChileCompra is now facing second generation challenges, like the strengthening of the public procurement role in the socio economic national development. This chapter focuses on the evolution of the Chilean public procurement system, lessons learned and challenges, and the conditions to make it a complete electronic procurement process.
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Public Procurement Context

Smaller businesses are the private key players in the public procurement system, not only in terms of quantity, but most importantly, in terms of monetary resources they receive from the system, as shown in the chart below:

Figure 1.

Amounts involved according to provider size. 2014 and 2015 amounts at 2013 prices

This means that in 2015, market participation of smaller businesses reached 45% of the amounts engaged with the system. Before reviewing the instruments used by other countries, it is necessary to review the main indicators that may account for the condition of providers of different sizes.

The following Table 1 shows the number of providers receiving purchase orders according to their size per year.

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