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... of fair competition and facilitative for equal market access. ... Strong leadership - Sustainability of e-PUP as part of Nation-wide. e-Government reforms ... – PowerPoint PPT presentation

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Title: eProcurement

  • eProcurement
  • Ferenc Suba M.A., J.D.
    Vice-Chair of ENISA MB
  • Chair of CERT-Hungary

Electronic procurement (eProcurement)
definitions Use of electronic means in conducting
a public procurement procedure for the purchase
of goods, works or services. Advantages -
Transparency - Simplification - Better
allocation of public resources - Techological
development of the private sector - Alignment
with other EU members - Better control on public
spending - Competition and efficiency in the
private sector - Modernization of the public
sector - Financial savings for the public sector
eProcurement sub-phases eSourcing preparatory
activities conducted by the contracting
authority/entity to collect information for the
preparation of a call potential bidders are
contacted by electronic means to provide
quotations or manifest interest. eNoticing
advertisement of calls for tenders through the
publication of appropriate contract notices in
electronic format in the relevant Official
Journal (national/EU). eAccess electronic access
to tender documents and specifications as well
support to economic operators for the
preparation of an offer, e.g. clarifications,
questions and answers. eSubmission submission
of offers in electronic format to the contracting
authority/entity, which is able to receive,
accept and process it in compiance with the
legal requirements. eTendering is the union of
the eAccess and eSubmission phases. eAwarding
opening and evaluation of the electronic tenders
received, and award of the contract to the best
offer in terms of the lowest price or
economically most advantageous bid. eContract
conclusion, enactment and monitoring of a
contract / agreement through electronic means
between the contracting authority/entity and the
winning tenderer. eOrders preparation and
issuing of an electronic order by the contracting
authority/entity and its acceptance by the
contractor. eInvoicing preparation and delivery
of an invoice in electronic format. ePayment
electronic payment of the ordered goods, services
or works.
  • Key-enablers
  • eSignature data in electronic form which are
    attached to or logically associated with other
    electronic data and which serve as a method of
    authentication with regard to this data.
  • eIdentity dynamic collection of all attributes,
    in electronic format, related to a specific
    entity (citizen, enterprise, or object) which
    serve to ascertain a specific identity.
  • eAttestations (Virtual Company Dossier) set of
    certificates and attestations, in electronic
    format, to be provided by a supplier to prove
    compliance with the selection and exclusion
    criteria of a procurement procedure.
  • eCatalogues electronic supplier catalogue
    prospectuses used to prepare and submit offers or
    parts of them.
  • eArchiving use of electronic means for long-term
    preservations of documents in digitalised format,
    ensuring that they can be easily retrieved
    without conversions.

  • The source of public procurement
  • Public spending from public resources and founds
  • The aim of public procurement
  • - To ensure the provision of public services
    provided by public organizations by the
    development and operation of front end and back
    end operation of services and infrastructure.
  • The core process of public procurement
  • - Contracting technique defined and regulated by
    the act on public procurement under the framework
    of civil law
  • The subject of public procurement
  • - Public entity (contracting agency) being
    enabled to make decision on awarding contract on
    specified budget being advertised and processed
    inline with corresponding regulations.
  • The object of public procurement
  • - The goods, products and services to be
    provided, delivered as defined in governing

Regulations in the Countries of the European
  • Should be harmonized with the directives on
    public procurement
  • The hierarchy of legislations
  • -Directives of the European Union
  • - Contracts in force between the European Union
    countries and organizations
  • out of the region of the EU
  • - Standards of the EU
  • National acts on public procurement
  • National acts on other field
  • Secondary legislations under national acts
  • Other regulations (Ministerial Guidelines, etc.)

Reason for legislation
  • The acts on public procurement are defining the
    business processes from publicly advertising the
    intention of appointed contracting agency
    posessing the financial resources allocated in
    referred public founds to contract with the
    economic operator(s) turning out the most
    suitable and providing the best evaluated offer
    in matching the criterias stipulated in
    advertised call and referred documentation
    including the clear evaluation criterias
    providing equal chance for business operators to
    know the aims and details of the future contract
    in fully neutral and transparent way.

  • Procurement Directives
  • The Public Procurement Directive 2004/18/EC
    (works, supplies, services)
  • The Utilities Directive 2004/17/EC (water,
    energy, transports, postal services)
  • Both entered into force in April 2004, final date
    for transposition was 31 January 2006
  • Other relevant legislation
  • Regulation 1564/2005/EC on standard forms
  • New Regulation on CPV in March 2008 (categories
    for goods and services)
  • Directive 2006/112/EC on VAT
  • Directive 2000/31/EC on electronic commerce
  • Directive 1999/93/EC on a Community framework for
    electronic signatures

Requisites for electronic means of communication
in PUP
  • General availability
  • Interoperability with tools of general use
  • Data integrity and confidentiality
  • Availability of specifications for electronic
  • Security measures for data access

  • Good practice
  • a total solution for conducting public
    procurement competitions in Cyprus using
    electronic means. The project is carried out
    under the responsibility of the Public
    Procurement Directorate (PPD) of the Treasury of
    the Republic of Cyprus which is the Competent
    Authority for Public Procurement. The PPD, headed
    by the Deputy Accountant General, comprises
    professional accountants, accounting officers,
    engineers and clerical staff. The Beneficiary of
    the contract is the Republic of Cyprus. Cyprus,
    as an EU Member State, is deploying a system in
    order to support the electronic preparation and
    execution of public procurement competitions. The
    system will be in a position to be accredited by
    a competent organisation as being transparent,
    non-discriminatory, reliable, interoperable,
    unhindered, secure, easily accessible, supportive
    of fair competition and facilitative for equal
    market access. The system will cover the full
    range of Public Procurement in Cyprus, while it
    will also support the electronic submission of
    notices to the EU Publications Office as an

  • Technology solution
  • The standards/technologies used in the project
    comprise amongst others, UML language, J2EE, XML.
    HTML, LDAP, JDBC, timestamping, data encryption
    (symmetric asymmetric) and JAVA script. To
    ensure non-discrimination, all tenders received
    electronically are time-stamped by an external
    Time-Stamping Authority. All notices created
    through the system abide to the DTD 2.0.6
    specifications of the EU Publications Office and
    are submitted through an e-Sender implementation,
    in line with the communication standards set by
    the Office. The system is accessible by end-users
    through Internet-enabled workstations, by the use
    of a standard web-browser application, ensuring
    that all users require minimum system
    configuration for using the e-Procurement system.
    In addition, the e-Procurement system provides a
    desktop, offline application, implemented in the
    Java language, guaranteeing that its users can
    use the offline application in any operating
    system, further promoting the equality of
    treatment of users. The architecture of the
    system is intended to provide security/confidentia
    lity of data and no single-points-of-failure.

Problems with the implementation of e-Procurement
- I
  • Human resources
  • Competences in the public administration
  • Human resources in the private sector,
    especially SMEs
  • Lessons learned
  • Need for adequate promotion efforts
  • Give time to adjust technological
    infrastructure and staff

Problems with the implementation of
e-Procurement - II
  • Administrative decentralisation, centralisation
    of purchases
  • Local authorities may be unwilling to give up
  • of the procurement procedures
  • Lessons learned
  • Differentiate between the responsibilities and
  • execution of public tenders processes

  • Five Major Factors for Implementing E-PUP
  • - Strong leadership
  • - Sustainability of e-PUP as part of Nation-wide
  • e-Government reforms
  • - Pre-requisite of a minimum level of ICT
  • - Comprehensive process reengineering before
  • - Transformation of rigid and inefficient
    bureaucracies into more efficient and responsive

  • Thank you for your attention and patience!
  • PTA CERT-Hungary
  • www.cert-hungary.hu
  • Puskás Tivadar Közalapítvány
  • www.enisa.europa.eu
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