العربية Arab and Local Entities Explore Ministry of Finance's "Digital Procurement Platform" 29 July 2024 The Digital Procurement Platform launched by the Ministry of Finance has proven to be a highly effective model for digital systems, attracting attention both domestically and internationally. The platform continuously evolves and seamlessly connects federal entities with suppliers via an integrated network that fosters communication and increases transparency in procurement processes. It has expanded to include 34 categories, with over 120,000 products and services provided by 234 suppliers. For 2024, the platform is projected to deliver significant cost savings estimated at AED 31.1 million, with approximately 10% savings achieved through the catalog purchasing feature used by federal entities and 44% due to enhanced efficiency in utilizing financial and human resources. HE Mariam Mohammed Al Amiri, Assistant Undersecretary of Government Finance Management at the Ministry of Finance, emphasized that the platform plays a vital role in supporting national economic growth and achieving the strategic objectives outlined in MoF’s key transformation projects, including the "Supply Strategy of the Federal Government." Her Excellency highlighted that the Ministry of Finance's role in federal procurement has significantly expanded since 2007. With the launch of the digital procurement platform in 2021, procurement operations have further increased. This platform transformed the procurement experience by integrating advanced technological practices with commercial operations. It expanded the supplier base within the federal government and enhanced efforts to improve the quality of services and products at competitive prices. Delegations The Ministry of Finance has recently received a delegation from the Government Expenditure & Projects Efficiency Authority, where the guests were given an in-depth overview of the digital procurement platform, including its ongoing development, the challenges it addresses, and its integration of artificial intelligence and other cutting-edge technologies that enhance efficiency, cost savings, transparency, and governance. They were also introduced to the best practices and the latest trends in digital procurement to transform and enhance government procurement practices. Additionally, the UAE Central Bank, the Ministry of Cabinet Affairs, and the Abu Dhabi Department of Government Enablement were also briefed on this innovative digital platform. The Government Procurement Platform Department at the Ministry of Finance provided a comprehensive briefing on the Federal Government Procurement Law and Policy, including procurement principles, rules, and controls, as well as the executive regulations of the law and the guidelines, controls, and standards for procurement operations in the Federal Government. These are outlined in the Digital Procurement Policy, which has been developed based on global best practices and policies for procurement processes and in line with digital procurement systems to enhance and guide procurement procedures in accordance with the Federal Government's digital agenda. Furthermore, the delegations were introduced to the Federal Asset Tracking System implemented by the Ministry of Finance. This system unifies procurement, tracking, and accounting processes to manage the lifecycle of fixed assets across federal entities meticulously. It aims to enhance the accuracy and comprehensiveness of financial and accounting data, ensuring the effective application of accounting standards related to assets as the federal government adopts the accrual accounting system. Improvements The platform features a user-friendly interface and a system that offers clear visibility of transactions and spending analysis, enabling better financial decisions. It provides an easy and flexible user experience enhanced with several digital features. These include login via UAE Pass, a smart report dashboard, contract obligation management, and electronic signatures using digital identities. Additional functionalities include credits, direct communication with suppliers, electronic contracts, and e-procurement through an extensive catalog. Guidelines The Procurement Procedures Manual, which outlines the procedures, methods, and protocols for digital procurement by federal entities, was also presented. The manual provides comprehensive instructions for implementing procurement activities within the digital system. It includes guidelines and maps detailing the operational process, responsibility distribution matrix, and delegation of authority matrix, which define the powers of commissioners to approve financial and non-financial decisions on federal procurement in line with legal provisions and executive regulations. The Ministry also showcased various standardized procurement contract models designed for federal use and highlighted the significant benefits of its procurement policies. These benefits include streamlined procedures by eliminating unnecessary committees, abolishing registration fees for suppliers, simplifying performance guarantee requirements, and incorporating the National Content Program to favor suppliers who notably contribute to the national economy. The visiting delegations were also briefed on the advantages of purchasing through the catalog compared to traditional methods. The catalog process reduces steps by 75% and shortens the purchase time from 60 days to just 6 minutes, as the Central Procurement Unit at the Ministry of Finance negotiates the best prices with suppliers. The guests were informed about the updated catalog, which simplifies the formerly 11-step purchase process to just three steps, along with the benefits of electronically editing contracts and signing them using digital identities. Supporting National Initiatives Furthermore, the platform supports the Emiratisation initiatives by prioritizing suppliers who meet the mandatory Emiratisation quota of 2%, in collaboration with the Ministry of Human Resources and Emiratisation. It also promotes small and medium enterprises (SMEs) by offering a 10% price preference in tenders for SMEs, in coordination with the Ministry of Economy. Purchases are prioritized by suppliers who comply with Emiratisation rates as stipulated by relevant legislation and decisions from the competent authorities. Additionally, the platform enhances the In-Country Value (ICV) program by providing a 25% valuation boost for suppliers in tenders, in partnership with the Ministry of Industry and Advanced Technology.
