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Introducing Electronic Procurement Processes

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Provisions for new electronic purchasing techniques (implementation optional) Dynamic purchasing system (not a ... Despatch. advice. 9. Notices and Tendering ... – PowerPoint PPT presentation

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Title: Introducing Electronic Procurement Processes


1
Introducing Electronic Procurement Processes
  • Sören Lennartsson
  • Public Procurement Seminar
  • Valletta, 26 January 2006

2
New Procurement Directives
  • Recognition of eProcurement (implementation
    mandatory)
  • Electronic means, in writing, etc
  • Rules for communication, tools, devices
  • Provisions for new electronic purchasing
    techniques (implementation optional)
  • Dynamic purchasing system (not a procedure!)
  • Electronic auction (a process, not a procedure!)
  • General provisions that may support eProcurement
    (implementation optional)
  • Framework agreement
  • Central purchasing body

3
New Procurement Directives
  • eProcurement to be used at the discretion of
    the contracting entities
  • The general principles of equal treatment,
    non-discrimination and transparency apply
  • Specifically, tools for eProcurement shall
  • Be generally available
  • Be interoperable with products in general use
  • Conform to security and access requirements
  • Electronic auctions can be used as basis for
    award of contracts
  • eCatalogues may be used
  • although mentioned only in the preamble

4
Dynamic Purchasing System
  • Summarised description
  • A new, completely electronic system
  • In the framework of open procedure only
  • Open throughout its validity to any admissible
    tenderer
  • For commonly made purchases the characteristics
    of which are generally available in the market
  • Limited in duration (max 4 years)
  • With the purpose to create an open pool of
    potential tenderers and to increase competition
    through the use of electronic facilities

5
Dynamic Purchasing System
  • Includes 2 steps
  • - Step 1
  • Publication of a contract notice to announce the
    system
  • Submission of indicative tenders, which may be
    improved at any time
  • - Step 2
  • Publication of a simplified notice (invitation)
  • After at least 15 days, final invitation to
    submit a tender addressed to all economic
    operators admitted to the system

6
Electronic Auction
  • Summarised description
  • A new process allowing for repetitive bidding
  • Within the framework of the existing procedures
  • Applicable when contract specifications may be
    established with precision
  • Using e-devices for the submission of certain
    elements of the tenders (new prices /
    quantifiable values)
  • Automatic electronic evaluation (through a
    mathematical formula) for the ranking of
    tenderers

7
Electronic Auction
  • Takes place in two steps
  • - Step1
  • Publication of a contract notice to announce the
    intention to hold an auction
  • use of an existing awarding procedure for the
    qualitative selection of participants
  • full initial evaluation of tenders
  • - Step 2
  • Simultaneous invitation to the e-auction for the
    tenderers who have submitted admissible tenders
  • After at least 2 work days, e-auction takes
    place. A number of successive auctions phases
    possible
  • Award of the contract on the basis of the result
    of the auction

8
Outline of Procurement Steps
  • The traditional way of working may continue but
    with electronic messages replacing paper
    documents
  • Some paper documents are easier to substitute
  • Security focus on tenders, requests to
    participate
  • The time-limits may be shortened

9
Notices and Tendering
  • Necessary transaction volumes and incentives for
    standardisation of formats can be reached through
  • Central purchasing bodies
  • Marketplace solutions
  • Some characteristics of current solutions
  • Procurement process support/workflow (for the
    buyer)
  • Organisation of tender document package
  • Largely textual/non-structured documents
  • Services exist, for example
  • publication of notices (OJS eSender or manual
    form)
  • tender collection, including opening provisions
  • Support for evaluation (even complex award
    criteria)
  • Limited support to suppliers

10
Tendering Process
  • Measures to consider
  • Define standard contract clauses
  • Standardise terminology
  • Standardise information / document structure
  • elaborate on templates for calls
  • elaborate on templates for tender
  • Standard forms

11
Repetitive Processes
  • Includes
  • Framework agreements
  • Dynamic purchasing systems

12
Repetitive Processes
13
Repetitive Processes
  • Some characteristics of current solutions
  • High transaction frequency
  • Only small variations in message format
  • Structured, standardised documents
  • Integration of buyers and sellers systems
  • Automated process steps
  • Built-in transaction validation/control
  • Built-in authorisation/attestation mechanisms
  • Verification against framework agreement rules
  • Automatic attestation for payment possible

14
E-Catalogues
  • Does a price list/catalogue exist?
  • Is it stable?
  • Is it manageable?
  • The place of the price list/catalogue
  • At the buyers, sellers or third partys site?
  • Shopping portal vs. own system
  • Need for customised information?
  • How to control price list amendments?
  • How to normalise presentation?
  • Classification
  • CPV is not enough
  • Product classification and attribute codes needed

15
IDA e-Procurement
  • Based on the new legislative framework
  • To support the development of interoperable
    solutions
  • Developed functional requirements and guidelines
    for the technical implementation of electronic
    public procurement systems
  • Created learning demonstrators, simulating the
    public eProcurement functionality
  • It is hoped that IDABC eProcurement will continue
    the work. A cross-border project is proposed
    based on the UBL standard

16
To Consider
  • E- procurement requires a multi-disciplinary
    procurement units
  • An e-procurement study can be an important first
    measure
  • Consider how to involve all future users in the
    development process, in particular local
    authorities
  • What is the maturity level of IT
  • Among buyers
  • Among suppliers
  • Suppliers of supporting IT services
  • Potential effects of framework agreement, dynamic
    purchasing systems, e-auctions, central
    purchasing

17
Some Recommendations
  • Develop a national action plan
  • Plan for coexistence of traditional and
    electronic procurement
  • Plan for a step by step build-up and expansion of
    eProcurement
  • Include guiding and quality assuring tools from
    start
  • Begin with procurement areas that are easy to
    deal with electronically
  • Prepare good deployment strategies to engage the
    users of the system
  • Follow closely the European level developments on
    e-procurement, e.g. IDABC

18
  • Thank You!Questions and comments?

Sören Lennartsson46 31 232239, 46 733
307897soren_at_ooidata.se
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