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ee-Procurement-Procurement

New ways of public purchaseNew ways of public purchase

ProcessSimplification

• Shortened tendering process

• Close to zero time to market

• On-line ordering (e-procurement)

Service efficiency Service efficiency

and qualityand quality

• Focus on quality

• Wide range of options within contracts

• Systematic service levels assessment

Goals Strategies

Transparency and timely tracking in PA expenditureMarket dynamics enhancement

• Competitiveness

• Scale economies through demand

aggregation and purchasing standardizationCost saving

Side-effects

Challenges for administrations

ee-procurement-procurement

• All kinds of electronic purchasing techniquesAll kinds of electronic purchasing techniques

• No difference in regard to the principles of No difference in regard to the principles of paper based procurementpaper based procurement

• Contracting authorities may make use of Contracting authorities may make use of electronic purchasing techniques, providing electronic purchasing techniques, providing such use complies with the rules drawn up such use complies with the rules drawn up under the Directive 2004/18/EG and the under the Directive 2004/18/EG and the principles of equal treatment, nondiscrimination principles of equal treatment, nondiscrimination and transparency. and transparency.

Simplify the entire supplier selection

process, cutting tender time and costs

Assure transparency, security and “par

condicio” among participating suppliers

Reduce participation costs to suppliers

Purchasing procedures based on an electronic Purchasing procedures based on an electronic ssystem that ystem that can assess the proposed goods & services through can assess the proposed goods & services through

economic and/or technical criteriaeconomic and/or technical criteria will: will:

ADVANTAGES

to Public Administrations:

costs and process cutting

potential broadening of suppliers base

easy access to selected goods (pre-defined quality standards)

information transparency and easy comparison among goods

purchasing tracing out and consequent expenditure monitoring

to Suppliers:

selling cost reduction (due to broadening of catchment's area and no intermediation cost)

major visibility

more competitiveness especially in local markets (for small medium sized enterprises)

B2G introduction, especially for large sized enterprises, in addition to existing B2B and B2C

Transparency increasing

Offering expansion

e-procurement allows to improve public procurement efficacy and efficiency

Greater number of public supplier (for example with Marketplace and new kind of auctions design)

Greater spread of information

New processes and competencies, innovative technology and systems

Purchasing-related process

simplification

Cost reduction,investments increase

and recovery on resources

Market greater competition

Frame contracts : the process simplification

…to the new process of goods & services procurement

From the traditional…

On-lineOn-lineOrderOrder

Needs Analysis

Goods/ Services Delivery

PaymentSupplier selection

Evaluation and award procedure

Draft for ten-der/contract documents

Contract signing

Types of (Types of (e)e)--ProcurementProcurement

• Ordering onlineOrdering online

• Ordering and payment onlineOrdering and payment online

• Electronic ProcurementElectronic Procurement

• Electronic auctionElectronic auction

• Dynamic purchasing systemsDynamic purchasing systems

ElectronicElectronicShopsShops

ElectronicElectronicShopsShops

Purchases within frame Purchases within frame

contracts for Goods & contracts for Goods &

Services:Services:• Large volumesLarge volumes• StandardizedStandardized• Low price volatilityLow price volatility• Slow obsolescenceSlow obsolescence• Demand Demand

aggregationaggregation

On lineOn lineAuctionsAuctions

On lineOn lineAuctionsAuctions

Frame contracts onFrame contracts on

Goods & Services:Goods & Services:• SpecializedSpecialized• High price volatilityHigh price volatility• Rapid obsolescenceRapid obsolescence• ASP possibility ASP possibility

towards other towards other

administrationsadministrations

MarketplaceMarketplaceMarketplaceMarketplace

Purchases below the Purchases below the EU threshold for Goods EU threshold for Goods & Services:& Services:

•Low costLow cost•Highly Highly

fragmentedfragmented•Multi products Multi products

and multi supplierand multi supplier

(pre-selected (pre-selected

products)products)

E-shopsE-shops represent an open window on the web in which goods and services selected through tenders and frame contracts are available to PA procurement offices registered to the Program

Traditional Traditional and and

electronic electronic tenderstenders

Product Product selection selection

and online and online orderingordering

The Public Administrations’ Marketplace The Marketplace is a virtual market in which public

administrations can select goods & services offered by several suppliers, for purchases below the EU threshold

The marketplace is open to qualified suppliers (and goods) according to selection criteria which are not particularly restrictive

The entire process is digital using digital signature in order to legally guarantee the transactions

Qualified suppliers selected through a qualification process, starting from the date of publication of the “qualification notice”

Suppliers

• Central Administrations

• Universities• Local bodies• Health bodies

Buying administrations

Public Administrations’

Marketplace

Mark

et

Qualification notice(public announcement)

ee-procurement-procurement

Public sector

Bidder

Tender

Offer

Do

cum

ents

Offer

Safety server

Fin

ish

EvaluationDecision

AwardContract

Start

Project planning

Electronic auctionElectronic auctionDefinitionDefinition

An An ‘electronic auction’‘electronic auction’ is a is a repetitive process involving an repetitive process involving an electronic device for the presentation electronic device for the presentation of new prices, revised downwards, of new prices, revised downwards, and/or new values concerning certain and/or new values concerning certain elements of tenders, which occurs elements of tenders, which occurs after an initial full evaluation of the after an initial full evaluation of the tenders, enabling them to be ranked tenders, enabling them to be ranked using automatic evaluation methods.using automatic evaluation methods.

Electronic auctionsElectronic auctionsGeneral rulesGeneral rules• Electronic auctions are defined in the Electronic auctions are defined in the

Directive and governed by specific rules in Directive and governed by specific rules in order to ensure that they operate in full order to ensure that they operate in full accordance with the principles of equal accordance with the principles of equal treatment, non-discrimination and treatment, non-discrimination and transparency. transparency.

• They deal only with contracts for They deal only with contracts for worksworks, , suppliessupplies or or servicesservices for which the for which the specifications can be determined with specifications can be determined with precision. Such may in particular be the precision. Such may in particular be the case for recurring supplies, works and case for recurring supplies, works and service contracts. With the same objective, service contracts. With the same objective, it must also be possible to establish the it must also be possible to establish the respective ranking of the tenderers at any respective ranking of the tenderers at any stage of the electronic auction. stage of the electronic auction.

Electronic auctionsElectronic auctionsGeneral rulesGeneral rulesRecourse to electronic auctions enables Recourse to electronic auctions enables

contracting authorities:contracting authorities:– to ask tenderers to submit new prices, revised to ask tenderers to submit new prices, revised

downwards, and when the contract is awarded to the downwards, and when the contract is awarded to the most economically advantageous tender, also to most economically advantageous tender, also to improve elements of the tenders other than prices. improve elements of the tenders other than prices.

– In order to guarantee compliance with the principle of In order to guarantee compliance with the principle of transparency, only the elements suitable for automatic transparency, only the elements suitable for automatic evaluation by electronic means, without any intervention evaluation by electronic means, without any intervention and/or appreciation by the contracting authority, may be and/or appreciation by the contracting authority, may be the object of electronic auctions, that is, only the the object of electronic auctions, that is, only the elements which are quantifiable so that they can be elements which are quantifiable so that they can be expressed in figures or percentages. expressed in figures or percentages.

– On the other hand, those aspects of the tenders which On the other hand, those aspects of the tenders which imply an appreciation of nonquantifiable elements imply an appreciation of nonquantifiable elements should not be the object of electronic auctions. should not be the object of electronic auctions. Consequently, certain works contracts and certain Consequently, certain works contracts and certain service contracts having as their subject matter service contracts having as their subject matter intellectual performances, such as the design of works, intellectual performances, such as the design of works, should not be the object of electronic auctions.should not be the object of electronic auctions.

Electronic AuctionElectronic AuctionGeneral rulesGeneral rules

In open, restricted or negotiated procedures In open, restricted or negotiated procedures the contracting authorities may decide that the the contracting authorities may decide that the award of a public contract shall be preceded by award of a public contract shall be preceded by an electronic auction when the contract an electronic auction when the contract specifications can be established with specifications can be established with precision.precision.

In the same circumstances, an electronic In the same circumstances, an electronic auction may be held on the reopening of auction may be held on the reopening of competition among the parties to a framework competition among the parties to a framework agreement and on the opening for competition agreement and on the opening for competition of contracts to be awarded under the dynamic of contracts to be awarded under the dynamic purchasing system.purchasing system.

Electronic AuctionElectronic AuctionGeneral rulesGeneral rules

The electronic auction shall be based:The electronic auction shall be based:• either solely on prices when the contract is awarded to the lowest priceeither solely on prices when the contract is awarded to the lowest price• or on prices and/or on the new values of the features of the tenders indicated in or on prices and/or on the new values of the features of the tenders indicated in

the specification when the contract is awarded to the most economically the specification when the contract is awarded to the most economically advantageous tender.advantageous tender.

3. Contracting authorities which decide to hold an electronic auction shall state that fact 3. Contracting authorities which decide to hold an electronic auction shall state that fact in the contract notice. The specifications shall include, in the contract notice. The specifications shall include, inter aliainter alia, the following , the following details:details:

(a)(a) the features, the values for which will be the subject of electronic auction, the features, the values for which will be the subject of electronic auction, provided that such features are quantifiable and can be expressed in figures or provided that such features are quantifiable and can be expressed in figures or percentagespercentages

(b) any limits on the values which may be submitted, as they result from the (b) any limits on the values which may be submitted, as they result from the specifications relating to the subject of the contractspecifications relating to the subject of the contract

(c) the information which will be made available to tenderers in the course of the (c) the information which will be made available to tenderers in the course of the electronic auction and, where appropriate, when it will be made available to themelectronic auction and, where appropriate, when it will be made available to them

(d) the relevant information concerning the electronic auction process(d) the relevant information concerning the electronic auction process

(e) the conditions under which the tenderers will be able to bid and, in particular, the (e) the conditions under which the tenderers will be able to bid and, in particular, the minimum differences which will, where appropriate, be required when biddingminimum differences which will, where appropriate, be required when bidding

(f) the relevant information concerning the electronic equipment used and the (f) the relevant information concerning the electronic equipment used and the arrangements and technical specifications for connection.arrangements and technical specifications for connection.

Electronic AuctionElectronic AuctionGeneral rulesGeneral rules

Before proceeding with an electronic auction, contracting Before proceeding with an electronic auction, contracting authorities shall make a full initial evaluation of the authorities shall make a full initial evaluation of the tenders in accordance with the award criterion/criteria tenders in accordance with the award criterion/criteria set and with the weighting fixed for them.set and with the weighting fixed for them.

All tenderers who have submitted admissible tenders All tenderers who have submitted admissible tenders shall be invited simultaneously by electronic means to shall be invited simultaneously by electronic means to submit new prices and/or new values; the invitation shall submit new prices and/or new values; the invitation shall contain all relevant information concerning individual contain all relevant information concerning individual connection to the electronic equipment being used and connection to the electronic equipment being used and shall state the date and time of the start of the electronic shall state the date and time of the start of the electronic auction. The electronic auction may take place in a auction. The electronic auction may take place in a number of successive phases. The electronic auction number of successive phases. The electronic auction may not start sooner than two working days after the may not start sooner than two working days after the date on which invitations are sent out.date on which invitations are sent out.

Electronic auctions Electronic auctions General rulesGeneral rules

• When the contract is to be awarded on the basis of the When the contract is to be awarded on the basis of the most economically advantageous tender, the invitation most economically advantageous tender, the invitation shall be accompanied by the outcome of a full evaluation of shall be accompanied by the outcome of a full evaluation of the relevant tenderer, carried out in accordance with the the relevant tenderer, carried out in accordance with the weighting.weighting.

• The invitation shall also state the mathematical formula to The invitation shall also state the mathematical formula to be used in the electronic auction to determine automatic be used in the electronic auction to determine automatic rerankings on the basis of the new prices and/or new values rerankings on the basis of the new prices and/or new values submitted. That formula shall incorporate the weighting of submitted. That formula shall incorporate the weighting of all the criteria fixed to determine the most economically all the criteria fixed to determine the most economically advantageous tender, as indicated in the contract notice or advantageous tender, as indicated in the contract notice or in the specifications; for that purpose, any ranges shall, in the specifications; for that purpose, any ranges shall, however, be reduced beforehand to a specified value.however, be reduced beforehand to a specified value.

• Where variants are authorised, a separate formula shall be Where variants are authorised, a separate formula shall be provided for each variant.provided for each variant.

Electronic auctions Electronic auctions General rulesGeneral rules

Throughout each phase of an electronic auction Throughout each phase of an electronic auction the contracting authorities shall instantaneously the contracting authorities shall instantaneously communicate to all tenderers at least sufficient communicate to all tenderers at least sufficient information to enable them to ascertain their information to enable them to ascertain their relative rankings at any moment. They may also relative rankings at any moment. They may also communicate other information concerning other communicate other information concerning other prices or values submitted, provided that that is prices or values submitted, provided that that is stated in the specifications.stated in the specifications.

They may also at any time announce the number They may also at any time announce the number of participants in that phase of the auction. In no of participants in that phase of the auction. In no case, however, may they disclose the identities of case, however, may they disclose the identities of the tenderers during any phase of an electronic the tenderers during any phase of an electronic auction.auction.

Electronic auctions Electronic auctions General rulesGeneral rules

Contracting authorities shall close an electronic auction in Contracting authorities shall close an electronic auction in one or more of the following manners:one or more of the following manners:– in the invitation to take part in the auction they shall indicate in the invitation to take part in the auction they shall indicate

the date and time fixed in advancethe date and time fixed in advance– when they receive no more new prices or new values which when they receive no more new prices or new values which

meet the requirements concerning minimum differences. In meet the requirements concerning minimum differences. In that event, the contracting authorities shall state in the that event, the contracting authorities shall state in the invitation to take part in the auction the time which they will invitation to take part in the auction the time which they will allow to elapse after receiving the last submission before they allow to elapse after receiving the last submission before they close the electronic auctionclose the electronic auction

– when the number of phases in the auction, fixed in the when the number of phases in the auction, fixed in the invitation to take part in the auction, has been completed.invitation to take part in the auction, has been completed.

When the contracting authorities have decided to close an When the contracting authorities have decided to close an electronic auction, the invitation to take part in the auction electronic auction, the invitation to take part in the auction shall indicate the timetable for each phase of the auction.shall indicate the timetable for each phase of the auction.

After closing an electronic auction contracting authorities After closing an electronic auction contracting authorities shall award the contract on the basis of the results of the shall award the contract on the basis of the results of the electronic auction.electronic auction.

Dynamic purchasing Dynamic purchasing systemssystems

A A ‘dynamic purchasing system’‘dynamic purchasing system’ is a is a completely electronic process for making completely electronic process for making commonly used purchases, the characteristics commonly used purchases, the characteristics of which, as generally available on the market, of which, as generally available on the market, meet the requirements of the contracting meet the requirements of the contracting authority, which is limited in duration and authority, which is limited in duration and open throughout its validity to any economic open throughout its validity to any economic operator which satisfies the selection criteria operator which satisfies the selection criteria and has submitted an indicative tender that and has submitted an indicative tender that complies with the specification.complies with the specification.

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