The 13th of June was indeed something of a black Friday for The State Services Commission's E-government Unit, with the announcement that the GoProcure offering would be cut back to focus on a "core transaction hub".

GoProcure phase one commenced in December 2002 and is scheduled to run to November 2003. This first phase involved two options (both of which incorporate the transaction hub) for agencies that had not yet implemented internal requisitioning systems. These were;

The introduction of GoProcure was to occur in several phases to ensure the project didn't become unruly and that proper analysis was done as to each stage's worth. "The project was deliberately broken into a number of distinct phases and decision points," says State Services Minister Trevor Mallard. "This is good practice with complex or large information technology projects. It gives the Government the opportunity to limit its risk exposure whilst trying out innovative solutions in an environment that does not involve a long-term commitment."

Evaluation of the first phase quickly revealed that the Full Suite option was more difficult to implement and operate than initially scoped. Systems testing revealed that the degree to which agencies could customise their requisitioning to meet their needs was limited. Hence the decision to focus on establishing the core transaction hub.

"The purpose of the first phase was to determine the feasibility of implementing different system options for e-procurement," says Mallard. "Evaluation of this phase however showed that agencies are better implementing internal requisitioning systems, which some agencies have already done, and using the GoProcure transaction hub for updating catalogues and passing transactions to suppliers."

A transaction hub allows suppliers to maintain only one catalogue, and establish only one interface to sell electronically to many government agencies. This reduces costs for many businesses involved or wanting to get involved in e-commerce, as compared to the alternative cost of building individual electronic links to many government agencies. The transaction hub has always been at the core of the GoProcure project because of its role in facilitating the growth of e-commerce, and reducing costs for agencies and suppliers.

As to what happens next, Mallard says work will continue with the New Zealand Police and the University of Auckland as the first users of the GoProcure transaction hub. Suppliers to the Police and University of Auckland will continue to be involved in the first phase trial. Other suppliers will be able to participate in the transaction hub only if the project is extended to other government agencies.The original triallers of the Full Suite option ( the Department of Internal Affairs and Ministry of Agriculture and Forestry) will now evaluate their other options for implementing e-procurement, using the knowledge gained during the first phase says Mallard.

On the subject of a budget blow-out, the E-government Unit says the project funding has not changed. Funding for the trial phase is capped at $2 million and no additional funding is being sought to complete the trial.

June 2003

State Services minister
Trevor Mallard