The Price Bank enables public procurement parties to have points of reference for price quotes for particular products, as it is a database of electronic invoices issues in Brazil. Participants narrow their search via descriptors and filters to find the right quote.
Innovation Summary
Innovation Overview
The main objective of this innovation is the generation of the reference price of a product, with formation of the referential value based on actual purchases. The Price Bank module provides the information of the Electronic Invoices and the system performs the Grouping of Invoices. In addition, it provides other information such as: Minimum Value, Maximum Value and Weighted Average.
Each consultation can be recorded in pdf format or in spreadsheet format. After calculating and choosing the reference price, the result should be sent to the SIMPAS price bank system. It is important to inform that the search is done by the description of the item and other filters, and is carried out on a huge mass of data. In the State of Bahia, we have about eight million invoices/month.
In addition, the system allows the generation of a collection map of the reference price. In this way, all records changed or excluded from the sample surveyed, once this study is carried out by a government official, are stored in a database and can be accessed dynamically. Later, this map is approved or rejected by the area responsible for the purchases. If approved, information can be transferred to another system or data repository that stores the price record for that item.
Innovation Description
What Makes Your Project Innovative?
The previous generation of reference prices for state purchases and tenders, was done through quotes requested to qualified suppliers included in the suppliers register of the state of Bahia, leading to the delay in the process and high costs. These suppliers, when requested, would send the quotations through email. Also the worldwide computer network was and still is used to search for prices of items or products.
In addition, the State Government has a contract with the Getúlio Vargas foundation, where, quarterly, reference prices are provided for 1000 items or products. After the implementation of the initiative, it is possible to carry out reference price surveys based on the electronic invoices transactions carried out in the "real world", through the solution of the Price Bank - Electronic Invoice, with a reduction in time and cost, in a sustainable manner, without using paper throughout the business process, with transparency and fiscal confidentiality preserved.
What is the current status of your innovation?
The solution has been continuously improved with the application of good practices and suggestions for improvement by users. The Price Bank system is already implemented in 5 secretariats of the State of Bahia: Secretariat of Administration, Secretariat of Health, Secretariat of Education, Secretariat of Public Security and Secretariat of Finance, with expansion for Bahia State University and TIC Company of the State of Bahia. Due to the cost reduction decree in the government of the state of Bahia, the project did not achieve greater expansion.
In 2017, the Price Bank was awarded with the Innovation Seal at the 21st Innovation Contest of the National School of Public Administration - ENAP. This is the award for greater recognition of innovative initiatives in public management in Brazil.
Innovation Development
Collaborations & Partnerships
Secretariat of Finance of the State of Amazonas is responsible for the access to the source code and support in data collection since there was no documentation available. Secretariat of Finance of the State of Bahia provided the services in order to access the electronic invoice database of the country, with application of preservation measures of fiscal confidentiality. Secretariat of Administration of the State of Bahia was responsible for coordination, design and implementation.
Users, Stakeholders & Beneficiaries
The participation of Secretariat of Administration in the coordination of the project was fundamental, since it provided all the necessary resources (financial and human). The inspiration and creativity of the Project Coordination boosted all participants. In addition, the hard and dedicated work during tests and approvals, by the team of the Superintendence of Logistics Resources of Secretariat of Administration, users of the system, contributed to the success.
Innovation Reflections
Results, Outcomes & Impacts
• Generation of a reliable reference price
• Agility in obtaining the Price
• Control and Management of the process of collection of Reference Prices
• Perception of Sales between Parent and Subsidiary company
• Comparison between sales for the Private Sector vs. Public Entities
• Comparison between Wholesale Sales and Retail Sales Usability
• Isonomy Transparency
• Sustainability
• Cost Savings
• Expenditure Quality
Challenges and Failures
• We had to create a solution adequate to grant independent access given the high volume of invoices (millions of invoices). The solution was to identify a tax code of operations and benefits and incorporate filters in order to reduce the impact of volume
• Limitation of data storage time in 06 months
Conditions for Success
There must be senior management support and partnerships in each of the competencies involved.
Replication
The publication of price quotes in public procurement is highly replicable across governments.
Lessons Learned
It is essential to count on a team with multiple skills to achieve good results, which can work in a collective and creative way. Fine-tuning among partners is a relevant success factor. The commitment and dedication to the obstacles faced, contribute to overcome the difficulties encountered.
Status:
- Identifying or Discovering Problems or Opportunities - learning where and how an innovative response is needed
- Generating Ideas or Designing Solutions - finding and filtering ideas to respond to the problem or opportunity
- Developing Proposals - turning ideas into business cases that can be assessed and acted on
- Implementation - making the innovation happen
- Evaluation - understanding whether the innovative initiative has delivered what was needed
- Diffusing Lessons - using what was learnt to inform other projects and understanding how the innovation can be applied in other ways
Award WinnerThis innovation has won an award, as described in the case study text.
Innovation provided by:
Date Published:
18 October 2016