Procurement Frequently Asked Questions

8/13/2019 Procurement Frequently Asked Questions

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Procurement frequently asked questionsPublic sector procurement is often seen as complex, so we've published answers to some of the

most frequently asked questions (FAQs) we receive about each of the topics listed below:

The procurement process

Tenders

Contracts

Electronic procurement

European Union (EU) Directives

FAQs The procurement Process

Public sector procurement is often seen as complex. The information below answers some of thecommon questions and queries about the procurement process:

What type of things does the council purchase?

What is the procurement process?

Who can I contact for more information on procurement?

What type of things does the Council purchase?

The range of goods and services required across all council services is vast.

Examples include: vehicles, stationery, office equipment, cleaning materials, books, furniture,

construction, catering, care services, foodstuff, bus services, refuse collection, IT hardware,

consultants, maintenance, etc.

What is the procurement process?

Under EU Procurement Directives, Argyll & Bute Council conduct their procurement using one of

four tender processes:

Open: any organisation can express an interest and request tender documents.

Restricted: a two-stage process where any organisation can express their interest. They then go

through a pre-qualification assessment. Once theses assessments (usually referred to as PQQs)

are complete, only the most suitable applicants are invited to tender.

Closed: the tender documentation is to be issued to a restricted list of suppliers.

Quick Quote: an online request for quotation facility


The council has a dedicatedProcurement and Commissioning Team (PCT)that is responsiblefor issuing and receiving all tenders and managing contracts.
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Electronic tenders should be submitted online and not via paper.

All documents related to tenders should be clearly marked with the tender title and reference

number.

Alternatively, you can email any documentation, contract or general procurement queries

[email protected]

FAQs Tenders

The information below answers some of the common questions and queries.

How do I find out about supplier opportunities?

What happens if I can't get my tender in on time? How are tenders evaluated?

Why is the tender process so formal?

How much information do I need to provide on contract award criteria?

Is it now possible to specify a particular brand of product?

Are there any circumstances in which bidders must be excluded?

How do I find out about supplier opportunities?

All current tenders for goods, services and works are advertised on thePublic Contracts

Scotlandwebsite

www.publiccontractsscotland.gov.uk

What happens if I can't get my tender in on time?

Tenders must be returned by the date advertised. Any received after the deadline will not be

considered. All tenders are opened at the same time to ensure a fair process.

How are tenders evaluated?

Argyll & Bute Council has an obligation to offer the best value for money services to its taxpayers

and requires an exceptional standard of performance from its contractors and suppliers.

Therefore, when selecting a supplier, the council must ensure that the supplier will provide value

for money, and that services will be delivered effectively.

In the list of evaluation criteria, cost and quality are usually the most important criteria.

Details of the specific evaluation criteria and the relative weighting of the criteria are included in

the tender documents that suppliers receive with the invitation to tender (ITT).
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At any time during the tender process suppliers may be invited to give a presentation/product

demonstration or attend a meeting/interview to aid the evaluation process. The council may also

conduct site visits to see first-hand how potential suppliers organise their work.

Why is the tender process so formal?

This is to make sure honesty and integrity is maintained throughout the process and that the

process is handled in a consistently fair and competitive manner. We are always happy to

answer questions specifically about a tender and specification if you have any. We will ensure

consistency in the information provided to contractors and in the way in which

we communicate with them.

How much information do I need to provide on contract award criteria?

The contract notice will state whether the award is to be based on the lowest price or most

economically advantageous bid. In the latter case, the contract notice, contract documents or, in

the case of the competitive dialogue, the descriptive document accompanying the contract

notice, will state the relative weightings given to each of the award criteria.

The weightings can be expressed as a single figure or as an appropriate range. Where the

purchaser believes it is not possible to give weightings for demonstrable reasons, award criteria

will be stated in descending order of importance.

Is it now possible to specify a particular brand of product?

The rules on specification of brands have not changed. Brands can only be specified,

exceptionally, when it is not feasible to specify the requirement in technical or performance

terms. Reference to the brand will be accompanied by the words 'or equivalent'.

Are there any circumstances in which bidders must be excluded?

Bidders convicted by final judgement of money laundering, fraud, corruption, bribery or

participation in a criminal organisation must be excluded.

FAQ Contracts

The information below is intended to answer some of the more common questions and queries.

How do I respond to a Contract Notice?

What information will I need to provide when applying for contracts?

How likely am I to win a Council contract?

How can I improve my chances of winning a Council contract?

How are contracts monitored?
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How do I respond to a Contract Notice?

If you see a council contract advertised that you or your company is interested in tendering for,

you should lodge an official Expression of Interest. Details of how to do this will be given in the

contract notice advert together with any deadline for completion.

What information will I need to provide when applying for contracts?

The contract notice or advert will detail what procurement procedure is being utilised i.e. open,

restricted or closed.

Each tender process will require the supplier to provide some or all of the following information

and this will be specified in the notice:

Financial information - Details from each of the last three years may be required. Where

requested, private and public limited companies must submit their fully audited accounts as

registered with Companies House. Other suppliers should forward copies of financial statements,

business plans or a certified statement of turnover. This information is assessed to ensure the

company is financially stable enough for the contract in question. Other financial details, for

instance; insurance cover, may also be required.

Equal opportunities - The council strongly supports equal opportunity laws, and requires all

suppliers to comply with equal opportunities legislation. Suppliers will be asked to detail and

possibly provide evidence of how equality issues are included in a company's employment

practices. Sustainability - Certain types of tender will ask for information in relation to sustainable

procurement and this will generally relate to social, economic or environmental considerations,

and may incorporate requests for information on community benefits that will be provided as part

of the contract.

Health and safety - The council is committed to providing a safe and healthy environment for

everyone it works with. Suppliers must provide information about their company's safety policies,

operational safety procedures and risk assessments.

Experience and technical ability - The council needs to assess whether a company has the

relevant experience, resources and technical ability to carry out the categories of work or to

provide the type and quality of service required.

Suppliers should provide details of similar work carried out over recent years. They must also

provide contact details of referees so that confidential references can be directly obtained by the

council. Further details may be required for particular contracts

How likely am I to win a Council contract?

As long as certain criteria is met, such as financial stability, satisfactory health and safety

environments and that services are provided to a high quality at a competitive cost, there is no

reason why companies cannot attract business from the council. Argyll & Bute Council applies


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fairness and equality of treatment in awarding contracts in line with achieving best value for

citizens and the taxpayer.

How can I improve my chances of winning a Council contract?

You need to clearly demonstrate that you can meet the required standards and service delivery

requirements at the most economically advantageous cost.

How are contracts monitored?

The contractor will be expected to deliver or provide the service in accordance with the

requirements set out in the contract papers and proposals on how to carry it out.

Suppliers and contractors working for the Council are regularly monitored to assess their

compliance with predefined performance criteria. The contract conditions are strictly applied and

explanations sought if a contractor fails to perform to the levels required.

FAQs Electronic Procurement

The information below answers some common questions and queries.

What is e-tendering?

What is e-procurement?

What are the benefits of e-procurement to suppliers? Who can I contact for more information on procurement?

What is e-tendering?

E-tendering refers to the electronic advertising of requirements for good or services, registering

suppliers, issuing and receiving tender documents and evaluating responses over the internet,

using tools such as the Public Contracts Scotland website.

What is e-procurement?

E-procurement combines internet technology with procurement best practice to streamline the

purchasing processes, increase efficiency in the ordering process and reduce costs for both

contracting authorities and suppliers.

What are the benefits of e-procurement to suppliers?

Participating suppliers can realise many benefits from online or e-procurement, including:

increased visibility and access to markets without additional marketing efforts a single point of access to Argyll & Bute Council's 'market'
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faster and more efficient tendering

increased order accuracy through electronic ordering

a consistent purchase order format.

Overall, e-procurement can help suppliers reduce costs in process, marketing, and adminoperations.


The Council has a dedicated Procurement and Commissioning Team (PCT) that is responsible

for issue and receipt of all tenders and management of contracts. For contact details, see

ourProcurement and Commissioning Teamscontact details.

Tenders should be submitted online and not in paper format. All documents related to tenders

should be clearly marked with the tender title and reference number.

Alternatively, you can email any general procurement queries toprocurement@argyll-

bute.gov.uk

FAQ EU Directives

The information below is intended to answer some of the more common questions and queries.

What rules and regulations should I be aware of? What are the key changes to EU Directives and do they constitute a major change to

public sector procurement practice?

What are the additions to EU Directives?

Where can I obtain copies of the EU Directives?

What rules and regulations should I be aware of?

As a local authority, there are regulations which the Council has to follow when procuring goods,

works and services. It is important that if you wish to contract with Argyll & Bute Council you are

fully aware of the rules and regulations which govern the way we operate.

For instance, we have a legal requirement to comply with the European Union (EU) procurement

directives, which govern the way in which public sector procurement is conducted for contracts

above specified thresholds. These rules alter the way in which contracts are awarded, based on

the value of the purchase.

EU Thresholds are currently 173,934 for Goods & Services, and 4,348,350 for works. The

council will contact all tenderers whether successful or not to advise them of the outcome.

Where a contract is valued in excess of the EU thresholds, the unsuccessful tenderers will be
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told of the outcome and the successful tenderer will be notified that, subject to there being no

challenge to the award decision, the contract will only be awarded after a standstill period of 10

days.

What are the key changes to EU Directives and do they constitute a majorchange to public sector procurement practice?

Key changes and refinements to the EU Directives are:

consolidation of the three old Directives (Services, Supplies and Works) into a single public

sector Directive

more consistent treatment of issues common to the three established procurement procedures

(open, restricted, negotiated and competitive dialogue)

a requirement to publish the relative importance of contract award criteria

greater ability to take account of relevant environmental issues in specifications and contract

award criteria reflecting European Court of Justice case law, and

greater encouragement to use performance specifications and more emphasis on the need to

consider equivalence to a specified standard.

What are the additions to EU Directives?

Additions to the EU Directives are:

the introduction of a competitive dialogue procedure to enable purchasers to enter into dialoguewith bidders for the purpose of developing and optimising specifications and contract terms and

conditions for complex procurements

explicit provision for framework agreements and central purchasing bodies (consortia) which are

very similar to established UK public sector practice

explicit provision for electronic trading in the form of electronic auctions, dynamic purchasing

systems and electronic communications, and

mandatory exclusion of candidates convicted by final judgement of money laundering, fraud,

corruption or participation in a criminal organisation

Where can I obtain copies of the EU Directives?

Copies of the Directives can be obtained on theEuropean Union website

FAQs on ProcurementThe content of these "Frequently Asked Questions" is intended to provide a generalguide, only, and it does not constitute legal advice. Specialist legal advice should besought in specific circumstances.

Question 1: To whom do the public procurement guidelines and rules apply? Question 2: When do I have to tender for the purchase of supplies and services? Question 3: Can I invite parties to tender directly?
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Question 4: Must requests for tenders be advertised in national newspapers? Question 5: Why the 25,000 threshold for advertising on etenders? Question 6: Is there a list of contractors/ suppliers/ service providers used by public bodies? Question 7: Is there a minimum time to be allowed for the submission of tenders? Question 8: How do I prepare a Request for Tenders (RFT)? Question 9: What is the GCC? Question 10: Do I need GCC approval to award a contract? Question 11: What are Public Procurement Directives? Question 12: What are the EU Procurement Directive thresholds? Question 13: Are there any exemptions from the Directives? Question 14: How do I get my contract notices / advertisements published in the OJEU? Question 15: The OJEU form requires that the language or languages in which tenders can be

drawn up be indicated. What should I indicate here? Question 16: Is publication of a Prior Information Notice (PIN) in the OJEU mandatory? Question 17: If I havent advertised in the OJEU and tenders received are above EU thresholds,

what can I do? Question 18: My contract is urgentdo I have to advertise in the OJEU and adhere to the

minimum times for responses set out in the Directives? Question 19: Can I try to negotiate a better deal on a tender price to get better value for money? Question 20: Is it possible to extend contracts? Question 21: What is the CPV? Question 22: What is the GPA? Question 23: How long is the standstill period required under the new Remedies Directive?

Question 1: To whom do the public procurementguidelines and rules apply?They apply to procurement by all public sector bodies, such as Government Departments /Offices, local and regional authorities, health authorities, commercial and non-commercial Statebodies. Also, most works and related services contracts awarded by a private entity, which aresubsidised 50% or more by a public body, are covered by the EU Directives if they exceed theEU thresholds. Contracts below the EU thresholds which are funded or part-funded from publicfunds, awarded by private sector entities, should, as far as possible, be awarded in accordancewith the national guidelines.

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Question 2: When do I have to tender for the purchaseof supplies and services?The basic principle of public procurement is that there should be a competitive process. The typeof process will depend on the value and nature of the requirement. There is a legal obligation toengage in a competitive process for contracts above EU thresholds and award them inaccordance with procedures set out in EU public procurement Directives.

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Question 3: Can I invite parties to tender directly?Yes. Particularly suitable suppliers or service providers may be invited to compete for contractsbelow 25,000. A number sufficient to ensure adequate competition, selected on an objectiveand non-discriminatory basis, should be invited to tender. It is also acceptable to supplementadvertising for competitions above EU thresholds by sending notification that a competition hasbeen published. Further engagement should not take place other than in the normal course of

competition.

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Question 4: Must requests for tenders be advertised innational newspapers?It is not obligatory to advertise in national newspapers. There is a legal obligation to advertisecontracts above the EU thresholds in the OJEU. All public contracts above 25,000 as defined in

Department of Finance Circular 10/10, and some below this value as defined in Department ofFinance Circular 02/09 regarding IT contracts should be published onwww.etenders.gov.ie.Theetenders website is the main point of reference for entities interested in Irish public sectorcontracts. If newspaper or other media advertising is considered necessary it is recommendedthat an abbreviated notice be published referring to full details on the etenders site.

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Question 5: Why the 25,000 threshold for advertisingon etenders?Advertising contracts above 25,000 on etenders is a requirement of Department of Finance

Circular 10/2010. It was introduced to provide accessibility to public contracts for the SME sector.Circular 10/10 states that contracts above 25K be advertised onwww.etenders.ie.

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Question 6: Is there a list of contractors / suppliers /service providers used by public bodies?Many public bodies have lists from which they invite suppliers to submit tenders for requirementsbelow 25,000. Contracting authorities who maintain lists generally advertise and inviteapplications annually, but applications may be made directly at any time to the relevantDepartment / Office, The National Procurement Service, Local Authority, Health Authority etc.

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Question 7: Is there a minimum time to be allowed forthe submission of tenders?For contracts below the EU thresholds there are no prescribed time limits. Sufficient time must beallowed for suppliers to prepare tenders. The complexity of a project / contract should be takeninto account when deciding the response duration to a competition. For contracts above EUthresholds the procurement directive time limits apply.

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Question 8: How do I prepare a Request for Tender(RFT)?Department of Public Expenditure and Reform Circular 1/11 launched the new suite oftemplatedocuments.The documents are designed for use in the procurement of routine, non-bespokeand low- to medium-risk supplies and services. Guidance on the use of the documentsaccompanies the documents. The NPS helpline is 1890 213 414. Please also see theprocurementDirective 2004/18/EC.

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Question 9: What is the GCC?
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The GCC (Government Contracts Committee) is a committee of procurement officers fromcentral Government Departments and agencies which have a significant procurement function orhave responsibility for key procurement sectors. It examines and considers procurement issuesand assists the Department of Finance and the National Procurement Service in formulatingprocurement policy, drafting guidelines and promoting best procurement practice.

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Question 10: Do I need GCC approval to award acontract?No. The procedure whereby certain contracts of Central Government Departments and Officeshad to be submitted for GCC approval is replaced by the procedure outlined in Department ofFinance Circular 40/02. Contracting authorities outside the Central Government Sector may havetheir own internal approval procedures.

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Question 11: What are Public Procurement Directives?Public Procurement Directives are part of the legislative tools which are binding on public bodiesin Member States when procuring works, supplies and services, above certain thresholds, in theOfficial Journal of the EU. This body of law includes requirements as to advertisement,procedures and standards for awarding contracts in such a way as to ensure open, transparentand fair competition. There are legal consequences for failure to comply with these legislativeprovisions. In addition, there may also be varying degrees of delays and/or financial penalties.

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Question 12: What are the EU Procurement Directive

thresholds?The relevant values (exclusive of VAT) applicable from 1 January 2012 to 31 December 2014,above which advertising of contracts in the Official Journal of the EU is obligatory are:

Works Contracts5,000,000 threshold applies to Government Departments and Offices, Local and RegionalAuthorities and other Public Bodies.

Supplies and Services Contracts130,000 threshold applies to Government Departments and Offices. Contract Notice -200,000threshold applies to Local and Regional Authorities and Public Bodies outside the Utilities Sector.

Utilities Works Contracts / Prior Indicative Notice5,000,000 applies to entities in Utilities Sectors covered by GPA (Government ProcurementAgreement). Supplies and Services contracts -400,000 applies to entities in Utilities Sectorscovered by GPA.

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Question 13: Are there any exemptions from theDirectives?The vast majority of public contracts above the relevant thresholds are subject to the provisionsof the EU public procurement directives. There are very limited exceptions, for example in the

areas of Defence and State security. Some services, annexed to the directives and listed inAppendix IIB of the Competitive Process Guidelines, are not subject to the full provisions of the
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directive and advertising in the OJEU is not obligatory. However, it is national policy to advertisesuch contracts of significant value as part of a competitive process. They must also be awardedin accordance with EU Treaty principles of transparency (this implies appropriate advertising),non-discrimination on the grounds of nationality, freedom to provide services, freedom ofestablishment.

(a) Certain types of contracts are excluded from the Directive, for example: contracts in thewater, energy, transport and postal services sectors (Article 12 2004/18/EC), telecommunications(Article 13) and special security contracts (Article 14).

(b) Some services, annexed to the directives and listed in Appendix IIB of the CompetitiveProcess Guidelines, are not subject to the full provisions of the directive and advertising in theOJEU is not obligatory. However, it is national policy to advertise such contracts of significantvalue as part of a competitive process. They must also be awarded in accordance with EU Treatyprinciples of transparency (this implies appropriate advertising), non-discrimination on thegrounds of nationality, freedom to provide services, freedom of establishment.

If in any doubt, please refer to the Directive or seek legal advice.

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Question 14: How do I get my contract notices /advertisements published in the OJEU?Contracting authorities should always complete and publish their notices onlineviawww.etenders.gov.ieor the EU public procurement websitehttp://SIMAP.eu.int.There isguidance for users in completing online publication on both websites.

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Question 15: The OJEU form requires that the languageor languages in which tenders can be drawn up isindicated. What should I indicate here?Responses must be accepted in one of the official languages of the EU, for example English.However, under national policy, responses in the Irish language must also be accepted; thereforethe indication must normally be Irish or English.

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Question 16: Is publication of a Prior Information Notice

(PIN) in the OJEU mandatory?Publication of a PIN is not mandatory. However, where estimated annual requirements are inexcess of 750,000 for similar categories of supplies or services, publication is encouraged as anaid to transparency and as a means of enabling suppliers and service providers to prepare inadvance to tender for upcoming contracts. Contracting authorities who publish a PIN with therequired amount of information can avail of shortened minimum times in relation to submissionof expressions of interest in tenders. A purchaser profile with the necessary amount ofinformation published on a website and notified via a brief notice in the OJEU fulfils the samefunction as a PIN published in the OJEU.

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Question 17: If I havent advertised in the OJEU andtenders received are above the EU thresholds, what canI do?Estimates of costs must be realistic and depending on the margin over the EU threshold,

Contracting Authorities should seek legal advice. If tenders received are priced above EUthresholds, a contracting authority must be able to justify its original estimate if it awards acontract without OJEU advertising. Contracting Authorities should note that illegal direct awardscarry consequences.

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Question 18: My contract is urgentdo I have toadvertise in the OJEU and adhere to the minimum timesfor responses set out in the directives?The directives make provisions for awarding a contract (without advertising) and for acceleratingan advertised procedure in urgent and exceptional circumstances. However, urgency andexceptional circumstances are very narrowly interpreted by the European Court and the EUCommission. The instances where resort to these provisions is justified, will be very rare andmaximum care must be taken before availing of them. The exceptional circumstances / urgencymust have been unforeseeable and must not have arisen due to any action or inaction on thepart of the contracting authority. Legal advice would be advisable in these circumstances.

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Question 19: Can I try to negotiate a better deal on a

tender price to get better value for money?Post - tender negotiation is prohibited under EU rules as it diminishes transparency and can giverise to abuses in the tendering process. The system is designed to operate on the basis thattenderers submit their most competitive bid in response to the specifications set out in an RFT.

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Question 20: Is it possible to extend contracts?It is possible to extend contracts in certain circumstances. The circumstances in whichextensions to contracts may be permitted are set out in the EU Directives. As a general rule theprovisions confine extensions to 50% of the original value of contracts provided certainconditions are met. Contracting authorities should be prudent and anticipate, as far as possible,

all potential requirements before advertising.

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Question 21: What is the CPV?The Common Procurement Vocabulary (CPV) isa code for describing works, supplies andservices to be advertised in the OJEU. It is available onhttp://SIMAP.eu.int.It can be bestviewed or downloaded in Excel. (There is a link to the EU site on thewww.etenders.gov.ie).

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Question 22: What is the GPA?
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The GPA (Government Procurement Agreement) is a formal agreement concluded by a numberof member States of the World Trade Organisation, including the EU, to observe an open andnon - discriminatory public procurement policy and practice among its signatories. The provisionsof the EU Directives and the GPA are closely harmonised. Almost all public contracts arecovered by the GPA. The principal exceptions are service contracts of public bodies for researchand development and contracts placed by entities in certain utility sectors (i.e. gas, heat, oil and

railways), which are covered by the EU Directives only. The slight variation in coverage gives riseto the application of different thresholds, as indicated in Appendix I of the Competitive ProcessGuidelines.

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Question 23: How long is the standstill period requiredunder the new Remedies Directive?The Irish Regulations (implementing the Remedies Directive) provide for a minimum standstillperiod of fourteen (14) days where notification in compliance with the Irish Regulations is sent byfax or electronically and a minimum standstill period of sixteen (16) days where notification is by

any other means. The standstill period starts of the day after the day on which the notification issent. The purpose of a standstill period is to allow for effective pre-contract remedy todisappointed tenderers and the contracting authority may not conclude a contract with anidentified preferred bidder during this time.

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Frequently asked questions: e-Procurement

What is e-Procurement?

E-procurement refers to the use of electronic communication and transaction processing by

government institutions and other public sector organisations when buying supplies and servicesor tendering for public works.

Why are we publishing this Green Paper?

This consultation in the form of a Green Paper is addressed to Member States, central Ministries

(for example, finance, budget); large procurement agencies and contracting authorities; providers

of technology solutions, procurement specialists from the private and public sectors,

representatives of trade associations and suppliers in general.

Its objective is to invite input and ideas on ways to:

a. Simplify and improve public procurement administration through ICT. Existing procurement rules or practices

may need to be reviewed to permit a fuller exploitation of the benefits of e-Procurement;

b. Accelerate the transition to e-Procurement: despite the widely-recognised benefits (which include process, price

and time savings), only a small part of public purchasing in Europe is conducted through electronic means.

c. Avoid a new generation of barriers to cross-border procurement, having their origins in different ICT solutions or

e-Procurement processes.

Why now? Were there any other proposals in the past?

Directives 2004/18/EC and 2004/17/EC were intended to modernise and simplify public

procurement procedures and recognised the on-going transition within Member States to e-

Government in general. They introduced, for the first time, the possibility to use electronic means

to conduct public procurement and also provided some new, modern, purchasing techniques. To

facilitate and support the introduction of e-Procurement, the Commission also adopted the 2004

"Action Plan for the implementation of the legal framework for electronic public procurement".
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The Commission has just completed an evaluation1of the Action Plan, assessing its contribution to

the advances made in the adoption of e-Procurement. The evaluation identifies outstanding

challenges and issues which need to be resolved. The review is timely - there is still a window of

opportunity to influence development and integration within the e-Procurement market, which has

not yet reached a critical mass. However, the market is evolving, different national solutions are

being developed and the window will not remain open for long.

What are the potential risks identified?

A number of challenges and weaknesses have been identified which prevent the wider take-up of

e-Procurement and cross-border participation in on-line procurement. Looking to the future, the

Commission must continue to act to minimise the risks of a decentralised, fragmented approach at

EU level. Not switching to e-Procurement also means missing the opportunity to reduce the time

taken to procure, make the process simpler and cheaper - benefits which are being realised by

those who have already made the change.

What areas are currently under consideration?

The main areas where issues have been identified for further consideration are:

Overcoming inertia and fears on the part of contracting authorities and suppliers;

Lack of standards in e-Procurement processes;

No means to facilitate mutual recognition of national electronic solutions;

Onerous technical requirements, particularly for bidder authentication; and

Managing multi-speed transition to e-Procurement.

No actual measures have been identified as yet the Green Paper suggests a range of proposals

including possible legislative and policy change.

What are the benefits of e-procurement?

There is a small but growing body of evidence that e-Procurement can make the procurementprocess simpler, that contracts can be concluded more quickly and that process costs for both

contracting authorities and suppliers can be lowered. Ultimately, for the tax payer, this should

deliver better value for money. Some example of savings:

The Italian e-Procurement agency Intercent ER realised efficiency benefits of 67.5 million and 45 man -years

savings in 2008.

In the UK, the Office of Government Commerce site reported that it facilitated electronic sales of over 5 billion,

delivering 732 million in savings.

e-Auctions are also delivering price reductions - generally by 10-20%, sometimes by more.

A recent Deutsche Bank study2found that moving from paper based to digital invoicing could save the party

receiving the invoice around 11.6 per transaction and the issuer around 6.9 per transaction.

Why is the take-up of e-Procurement still lagging behind expectations?

The introduction of e-Procurement requires extensive adaptation of existing procurement

administration as well as the adoption of new ICT systems. This may deter purchasing bodies and

procurement officers who may see little direct incentive to implement new solutions.

The challenge now is to share the lessons from existing success-stories and show public

administrations that the technology exists and is being used successfully in many countries.

What can the Commission do to change the situation?
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National and regional authorities must take the lead in developing and implementing e-

Procurement programmes. A number of Member States and regions have acted as pioneers. Other

public administrations are now following their example.

The Commission can support Member States and regional authorities by:

Adapting EU legal provisions that currently prevent implementation of e-Procurement;

Providing regulatory incentives to reward authorities that provide or use e-Procurement for procurement covered

by EU legislation;

Encouraging alignment of on-line procurement models and ICT solutions to avoid access barriers;

Providing off-the-shelf solutions and support sharing of best practice.

Why is EU level action needed? Can Member States not do this on their own?

The Commission can add value by galvanising action, and developing a collective strategy to

support the introduction of e-Procurement.

The way that existing EU legislation is interpreted or implemented may prevent Member States

from making full use of the simplification potential of e-Procurement. Guidance, clarification or

review of relevant EU provisions may help Member States in maximising the e-Procurement

dividend. Appropriate adjustments to EU legislation may also give Member States new tools and

incentives to promote e-Procurement at their level.

There is a danger that a purely bottom-up approach to the development of e-Procurement

infrastructure will give rise to a new generation of technical or process barriers to cross-border

procurement. e-Procurement systems and networks are built by national or regional authorities

who don't always think about the need to make their systems open to businesses from other

countries. The Green Paper outlines ideas for ensuring that the introduction of e-Procurement does

not result in additional barriers to cross-border procurement. It is better to address these issues at

an early stage, when e-Procurement is still developing.

What are the next steps?

Responses to the consultation should be received by 31 January 2011. The Commission is also

organising an open hearing on 25 November 2010 in order to stimulate debate and gather views

from a wide range of actors in the e-Procurement field. A synthesis of responses to the Green

Paper will be published in 2011.

The responses to the Green Paper will serve as input when evaluating the case for EU level action

and framing useful initiatives to support the development of e-procurement in all EU Member

States. The Commission will then propose a White paper during 2011.

What is e-CERTIS?

E-CERTIS provides an on-line storehouse of the documents which are most frequently requested in

the 27 Member States (like, for example, evidence of compliance with fiscal obligations or social security

obligations or evidence of economic and financial standing). Inter alia, it allows users to quickly identify such

documents and match them with their local equivalent. The use of e-CERTIS will help business

operators to reduce costs and uncertainty due to the lack of knowledge about the various

certificates requested by the various national contracting authorities.1:

Third Party Procurement FAQs

Got a question? Need an Answer Fast! The following is a topical listing of questions frequently asked
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of the Federal Transit Administration's Office of Procurement. Clicking on a topic will transfer you torelated questions and answers.

A&E Contracts Acquiring Real Estate ADA Requirements Advance Payments Airline Passenger Complaints Allowable Costs for Grants Alternate Bids Altoona Testing Applicability of FTA Circular 4220.1E to

Grantee Contractors

Applicability of FTA Circular 4220.1F ARRA ARRA Contract Clauses Artwork Asset Life Assignment of Grant Funds

Associated Capital Maintenance Items Audits of Third Party Contracts Availability of FTA Grant Funds for a University Availability of FTA Grants for Private Business Availability of FTA Grants for Transit Safety

Equipment

Best and Final Offer Bid Mistakes Bid Preference Bid Splitting Bonds Brand Names Bus Procurements Bus Refurbishing - Definition Bus Testing Requirements Buses - RFP for Refurbishing Business Opportunities in Transit Buy America Buying Fuel Buying Used Vehicles Cap on Wage Rates Capital Cost of Contracting Capitalization of Maintenance Costs Cardinal Changes Catalogue of Federal Domestic Assistance

Certifications for Third Party Contractors Change Orders Changes to Grants Charter Bus Civil Rights Requirements Clean Air Requirements CM At-Risk Commercial Driver's Licenses Compensable Delays Competitive Range Conducting Negotiations After Rejecting Bids Confidentiality of Proposals Conflict of Interest Construction Managers (CM) at-Risk Construction Project Information

GSA Supply Schedules IDIQ Contracts Incentive Contracts Independent Cost Estimate Insurance Requirements Inter-Agency Projects JARC Joint Procurements Justifying Sole Source Procurements Late Proposals Leases Legal Services Letters of Credit Licensing of Contractors Light Rail Window Standards Limited Product Liability

Limiting the Number of Bids Liquidated Damages Listing of Transit Agencies Local Matching Funds Local vs. Federal Funds Locating FTA Documents Matching Share Menu Style Multiple Contracts Metropolitan Planning Organizations Micropurchases Minnesota Cooperative Purchasing Venture

(Posted: July 30, 2013)

Modifying Contracts to Include FTA Clauses Multiple Contract Awards Multi-Step Procurements NEPA Requirements New Freedom Funds New Starts Transit Fund Notice of Amendment to RFP/RFQ/IFB Notification of Federal Assistance Offsetting Payments of Supplier Invoices One Contract for FTA and Non FTA Funded

Work (New)

Operating Assistance Grants Operational Services Contract

Options Organizational Structure for Procurement Office Overhead Rates Overtime Wages Owner Furnished Materials Paratransit Services Payment of Subgrantees Period of Performance Personnel Agency Fees Piggybacking PMO Lessons Learned Pre-Bid Conferences Pre-Qualification of Bidders Preventive Maintenance Claims Preventive Maintenance Requirements for
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Construction Projects Contacting Transit Agencies Contract Award Announcements Contract Changes Contract Clauses Contract Close-Out Contract Files Contract Term Limitations Contract Terminations Contract Terms Contractor Self Performance Cooperative Purchase Copeland Anti-Kickback Act Copyrights Cost Accounting Cost Plus Fixed Fee Contracts Cost Plus Percentage of Cost Contracts Cost/Price Analysis

Criminal Records Checks Davis-Bacon Act Wage Rates Definition of Rolling Stock Definition of "State" in FTA 4220.1F Definition of Contract Design - Build Determining Contractor Responsibility Disadvantaged Business Enterprise (DBE) Disclosing Identity of Offerors Disclosing Project Budgets Disclosure of Litigation by Offeror Disposal of Property and Equipment

Documenting Small Purchases or MicroPurchases DOT Carrier Licenses DOT Glass Certification Drug and Alcohol Testing Economic Price Adjustment Clause Economic Stimulus Funds Electronic Commerce Engine Emission Standards EPA Certification Evaluating Run-Out Costs Evaluation of Proposals E-Verify Program

Excluded Parties List Excusable Delays Expiration of Bids Extension of Due Date for Competitive Proposals FAR as Guidance for Grantees Farebox Revenue Federal Aid Construction Contracts Federal Motor Carrier Safety Administration Federal Motor Vehicle Safety Standards Federal Per Diem Rates Federal Vehicle Emission Standards Federal vs. Local Funds

FHWA Requirements Fixed Price Contracts

Vehicles

Price Credit For Deleted Work Price Escalation Clause Procurement of Insurance Procurement Planning Procurement Policies and Procedures Procurement Processing Timelines Procurement System Reviews (PSRs) Professional Services Profit Progress Payments Project Labor Agreements Prompt Payment Clause Proposal Evaluation Proposal Stipends Protests Publicizing Procuremnts Purchase Cards

Purchase of Used Equipment Randolph-Sheppard Act Real Estate Appraisals Reasonableness of Compensation Reasonableness of Contract Costs Record of Negotiations Record Retention Recycled Products Release of Bid Information by Grantees Representations and Certifications Requests For Information Requirements Contracts Research Grant Applications Retainage Revenue Contracts RFP Discussions/Clarifications RFP Versus Sealed Bids Rights In Data Rights of Way Role of a Contract Administrator Sealed Bids Seat Belt Usage Self-Assessment Guide for Procurement

Procedures

Service Contract Act Wages

Single Bid Small Business Opportunities Small Business Set-Asides Small Construction Projects Small Purchases Software Sole Source Procurements Soliciting Proposals Without Funds Source of Funds Spares Ratio Specifications Splitting State or Federal Requirements State Procurement Schedules Statutes
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Procurement Frequently Asked Questions

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