Electronic procurement methods

(ii) The electronic publication of procurement related information

Table 4 Benefits and beneficiaries of electronic government procurement

The electronic opening of tenders may require security related controls additional to those for other electronic procurement.

Table 4. Benefits and beneficiaries of electronic government procurement 25

Proposed draft text for the revised Model Procurement Law to accommodate the use of electronic communications during the procurement process

The legal recognition of electronic communications arises in connection with the acceptance of tender and entry into force of procurement contract (article 36), and also raises issues of procurement contracts and electronic signatures.

UNICEF agrees with the issue of electronic procurement and notes that the best benchmark for measuring progress would be other public procurement organizations that have been successfully implementing e procurement.

Some States may have requirements for digital or other authenticated forms of electronic signatures in electronic commerce, which may be applied to procurement provided that they do not operate so as to restrict access to the procurement.

Comparative study of practical experience with the use of electronic (reverse) auctions in public procurement

Electronic publication of procurement related information (A CN.9 WG.I WP.39 and Add.1)

Possible revisions to the UNCITRAL Model Law on Procurement of Goods, Construction and Services issues arising from the use of electronic communications in public procurement

Possible revisions to the UNCITRAL Model Law on Procurement of Goods, Construction and Services drafting materials addressing the use of electronic communications in public procurement

Possible revisions to the UNCITRAL Model Law on Procurement of Goods, Construction and Services issues arising from the use of electronic communications in public procurement

Accordingly, the Working Group decided that neither construction nor services procurement in their entirety should be excluded from the provisions governing electronic reverse auctions, pending further deliberations as to which type of procurement would be suitable for electronic reverse auction.

Electronic publication of procurement related information study of national, regional and international practices with the publication of procurement related information not covered by the Model Law

Possible revisions to the UNCITRAL Model Law on Procurement of Goods, Construction and Services drafting materials for the use of electronic reverse auctions in public procurement

(a) The enabling provisions should be based on the use of electronic reverse auctions as a procurement method rather than a phase in other procurement methods

Publication of some additional information may be necessitated by new electronic procurement techniques and features, such as e catalogues, dynamic purchasing systems or electronic reverse auctions (ERAs).

The members of the CEB concur and additionally note that several members are already pursuing electronic procurement.

(i) Possible revisions to the UNCITRAL Model Law on Procurement of Goods, Construction and Services issues arising from the use of electronic communications in public procurement Comparative study of practical experience with the use of electronic (reverse) auctions in public procurement note by the Secretariat (A CN.9 WG.I WP.35 and Add.1)

At its seventh session, held in April 2005, the Working Group had started the in depth consideration of four preliminary topics, namely, the electronic publication of procurement related information other issues arising from the use of electronic means of communication in the procurement process, such as controls over their use electronic reverse auctions and abnormally low tenders.

In this context, increasing emphasis should be placed on training in electronic procurement (e procurement) methods and on technical assistance in support of capacity building for public procurement agencies in the developing countries and countries with economies in transition.

(f) Recent developments in the area of public procurement issues arising from the increased use of electronic communications in public procurement note by the Secretariat (A CN.9 WG.I WP.31)

The report's 10 recommendations therefore focused on enhancing the productivity of procurement services, through measures such as benchmarking practices increased training of procurement staff strengthening of common procurement services for co located organizations, especially in New York, Geneva, Vienna, Nairobi and field duty stations and the introduction of electronic procurement methods or e procurement.

At its seventh session (New York, 4 8 April 2005), the Working Group addressed the following topics electronic publication and communication of procurement related information, other aspects arising from the use of electronic means of communication in the procurement process (such as controls over their use), electronic reverse auctions, and abnormally low tenders (see, further, document A CN.9 575).

It focuses on strategic issues most likely to contribute to enhancing the cost effectiveness of the procurement process within and among the organizations, namely cooperation and coordination, electronic procurement and capacity building.

Another concern expressed was that additional amendments might be required to address the fact that the principle of functional equivalence made electronic procurement of all kinds possible and not only electronic reverse auctions.

IAPSO, currently the most advanced entity in e procurement, reports that all its procurement functions are carried out using electronic methods and all purchase orders are issued in its UNWebBuy e commerce application.

In practice, the greater the value and complexity of the procurement, the longer the normal duration of the electronic reverse auction.

See Arrowsmith S., Electronic reverse auctions under the EC public procurement rules current possibilities and future prospects, 11 Public Procurement Law Review, No. 6, 2002, pp. 299 330 (originally prepared for Achilles Information Ltd.).

(a) A note concerning the use of electronic communications in the procurement process, including drafting materials (A CN.9 WG.I WP.38)

The paper cites the example of the Republic of Korea's Government Electronic Procurement System which cost US 26 million to develop but saves US 2.7 billion of all government procurement valued at US 17.1 billion.

At its seventh session, the Working Group requested the Secretariat to prepare drafting suggestions for its eighth session, reflecting the deliberations of the Working Group at its seventh session, on (i) electronic publication and communication of procurement related information, (ii) other aspects arising from the use of electronic means of communication in the procurement process, such as controls over their use, (iii) electronic reverse auctions, and (iv) abnormally low tenders.

Major constraints to be overcome, as reported by the organizations, include the lack of a legal and procedural framework for e procurement and more generally, the still limited confidence in the reliability of electronic transactions in some organizations, as exemplified by the non acceptance of electronic signatures, differences in information and communication technology systems and infrastructures, ill adapted skills of procurement staff, limited budget provisions for e procurement, etc.

(v) Sao Paulo, Brazil (14 16 September 2004), seminar in cooperation with Ministry of Planning, Budget and Management on procurement and electronic commerce in the context of the Fourth International Seminar on Government Procurement (700 participants)

(b) A note concerning electronic publication of procurement related information, including a comparative study and drafting materials (A CN.9 WG.I WP.39)

Consequently, as tendering is the general procurement method for goods and construction, the provisions enable an electronic reverse auction procedure that follows the pattern of the standard tendering method, adapted to provide for an electronic reverse auction.

With respect to controls over the use of electronic communications in the procurement process, the Working Group recognized that efficient and reliable electronic procurement systems required appropriate controls as regards security, confidentiality and authenticity of submissions, and integrity of data, for which special rules and standards might need to be formulated (A CN.9 568, para. 41).

The Working Group reaffirmed its earlier decision that those conditions fall to be treated in general law on electronic commerce and not in procurement law, and consequently that the Model Law would not address them and that provisions regarding electronic communications would be included in the Model Law if the procurement context strictly required such provision.

The above trend has been reversed in those jurisdictions where electronic means of communication are widely used for the publication of procurement related information.

(2) In any procurement by means of an electronic reverse auction, the procuring entity shall may engage in prequalification proceedings in accordance with article 7 .

(b) A note concerning the use of electronic communications in the procurement process, including drafting materials (A CN.9 WG.I WP.38 and Add.1)

Although most aspects of ERAs are to be addressed in procurement laws and regulations, the introduction of this electronic purchasing method in public procurement may necessitate adjustments in other relevant branches of law, such as competition and general public administration law.

Other delegations noted that the decision had been taken on the basis that allowing electronic reverse auctions as a phase in other procurement methods would undermine the principle of tendering that was the preferred procurement method under the Model Law.