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(Kiev, 1 December 2011)
Seminar on public procurement and eProcurement policies
eProcurement Policy in International Legal Documents
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Reasons
improved value for money from access to more suppliers or more competitive techniques (such as auctions)
saving transaction costs
saving time (e.g. quicker communication)
improved compliance with rules (through better monitoring)
stimulating a more competitive local supply base (adoption of modern practices and promoting standardization)
enhancing transparency and thereby limiting corruption (reducing personal contacts)
e-procurement is used by contracting entities
for dealing with suppliers
in communicating with the public and other public bodies
in the government’s internal administrative process
I. General Overview (1)
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Opportunity for procurement regulators
many national and international regimes on procurement have gradually updated or reviewed their provision to take account of electronic procurement
(EU Public Procurement Directives)
WTO Government Procurement Agreement
UNCITRAL Model Law on Public Procurement
Multilateral Development Banks e-GP
I. General Overview (2)
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Revised GPA text 2010
Incorporates complete revision of wording (streamlined, easier to understand and user-friendly)
Use of electronic procurement
Preamble to the revised text recognizes “the importance of using, and encouraging use of, electronic means for procurement covered by [the agreement]”
Electronic Communication
Public notices
Annex 1 entities: Mandatory access of procurement notices by electronic means
Annex 2 and 3 entities: electronic accessibility is “encouraged”
Possibility for reducing minimum timescales (- 5 days)
UNCITRAL Model LawII. WTO Government Procurement Agreement (1)
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UNCITRAL Model LawII. WTO Government Procurement Agreement (2)
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Electronic Auctions
“an iterative process that involves the use of electronic means for the presentation by suppliers of either new prices, or new values for quantifiable non-price elements of the tender related to the evaluation criteria, or both, resulting a ranking or re-ranking of tenders”
online, real-time competition between a buyer and a number of suppliers
Automatic evaluation method (including the mathematical formula) must be disclosed
not only the price can be changed during auction
E.g. delivery time, warranty period
UNCITRAL Model LawII. WTO Government Procurement Agreement (3)
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UNCITRAL Model Law and e-ProcurementIII. UNCITRAL Model Law (1)
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Electronic Reverse Auction (1)
Conditions for using
Feasible to formulate a detailed and precise description of the procurement’s subject matter
Effective competition must be ensured
Award criteria must be quantifiable and be expressed in monetary terms
restriction to “standardized” goods/services
restriction to “quantifiable” criteria
Only criteria that can be applied without any subjective input
precludes non-price criteria (e.g. aesthetic merit, environmental impact) during auction ?
only non-price which can be quantified on an auditable basis (e.g. maintenance costs) ?
UNCITRAL Model Law and e-ProcurementIII. UNCITRAL Model Law (2)
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Electronic Reverse Auction (2)
Very detailed set of rules (chapter VI)
Procedure
Type 1: e-auctions as a stand-alone procurement method (Art 53)
Type 2: e-auction as a phase of normal procurement methods (Art 54)
Requirements during e-auction
Automatic evaluation of all bids
Instantaneously information of its bid vis-à-vis other bids
Requirements after e-auction
Rejection of unresponsive bids / unqualified suppliers in Type 2 e-auctions
Rejection of abnormally low bids in Type 1/2 e-auctions
UNCITRAL Model Law and e-ProcurementIII. UNCITRAL Model Law (3)
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Website www.mdb-egp.org
jointly sponsored by the Asian Development Bank (ADB), the Inter-American Development Bank (IADB), and the World Bank
e-GP as effective tool in the fight against corruption, the promotion of integration and the stimulation of greater productivity
e-GP group has achieved a high degree of harmonization in its approach to provide technical advice and support to member countries in developing national e-GP strategies and solutions
e-GP Tool Kit prepared by MDBs is the only updated international standard for e-tendering and e-auctions for the time being
IV. Multilateral Development Banks e-GP (1)
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E-GP Tool Kit
provides member countries with strategic guidelines on the planning, management, implementation and support of e-GP
E.g. e-GP Strategic Planning Guide, International Survey of e-Procurement Systems, e-GP Standards Framework
IV. Multilateral Development Banks e-GP (2)
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Excursus: World Bank
See Guidelines Procurement Under IBRD Loan And IDA Credits, May 2004, Revised October 1, 2006 at 2.11 and 2.44
Provided that Bank is satisfied with adequacy of system
Multilateral development banks have published information on criteria that e-tendering must meet
www.mdb-egp.org
IV. Multilateral Development Banks e-GP (3)
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e-procurement already under PPA 2002
PPA 2006 emphasizes greater extend on e-procurement
Shorter time scales when electronic means of communication are employed
e-auction
Dynamic purchasing system
Mandatory electronic publication of information
SIMAP; pep.online.at (below EU-thresholds)
Suppliers must announce electronic address (e-mail)
Tender documents, communication via this address
Tender documents must be available electronically
Submission of RTP/bids if safe signature
“Law on signature”
UNCITRAL Model LawV. Excursus – e-Procurement in Austria (1)
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E-auctions
Only for “standardized” goods/services
E.g. not for intellectual services
Lowest bid or most economic advantageous bid
Example:
UNCITRAL Model LawV. Excursus – e-Procurement in Austria (2)
Rounds Time Admitted suppliers
A B C D E F G H I J
1 10 200 220 180 170 290 310 250 220 180 200
2 11 150 160 160 170 150 140
3 12 110 130 130 120 140
4 13 100 100
5 14 90
Result Award
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Use of e-procurement depends on individual contracting authority
no Austrian-wide uniformed approach
Central Purchasing Entity (“Bundesbeschaffungs GmbH)
http://www.bbg.gv.at/
ASFINAG / Austrian Railways joint e-procurement plattform
https://www.ava-online.at/
UNCITRAL Model LawV. Excursus – e-Procurement in Austria (3)
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Similar provisions in international texts
e-procurement – useful new tool
transparency, efficiency, integrity (anti-corruption), fair and equal treatment
e-procurement = reform process
Not just replacing letters with e-mails
Developed e-procurement system in Austria
UNCITRAL Model Law and e-ProcurementVI. Resumé
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Contact
Johannes S. SchnitzerSenior Associate, Vienna
WOLF THEISS Rechtsanwälte GmbHSchubertring 6, 1010 Vienna, AustriaT: +43 1 515 10 5355F: +43 1 515 10 665355E: [email protected]