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

Electronic procurement methods

(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)

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.

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

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

(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)

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.).

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.

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.

(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.

Public sector procurement

Table 4. Benefits and beneficiaries of electronic government procurement 25

Public procurement and management of public finances

There may sometimes exist rules and regulations regulating public procurement issued by various agencies handling public procurement.

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

(h) 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 note by the Secretariat (A CN.9 WG.I WP.34 and Add.1 and 2)

See Kennedy Loest C. and Kelly R., EC competition law rules and electronic reverse auctions a case for concern? , 2003, 12 Public Procurement Law Review, No. 1, p. 29.

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.

See Kennedy Loest C. and Kelly R., EC competition law rules and electronic reverse auctions a case for concern? , 2003, 12 Public Procurement Law Review, No. 1, pp. 28 30.

(j) 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 abnormally low tenders note by the Secretariat (A CN.9 WG.I WP.36).

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.

In China, ERAs are open only to members of the local online public procurement bidding system maintained by local public procurement centres.

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

See also article 72 of the Public Procurement Law of the Republic of Montenegro requiring the publication of annual public procurement assessment reports.

In Brazil, for instance, the use of procurement auctions in both versions, conventional and electronic, was initially restricted to the Federal Public Administration bodies but by article 2(1) of Federal Law No.

See, in China, the Shanghai Interim Measures for the Management of Online Public Procurement Bidding, article 22 the Shunyi District of Beijing Interim Measures for the Management of Online Public Procurement Bidding, article 20 and the Liuzhou City Rules of Implementation for Public Procurement through Online Procurement , article 22.

The EU Public Procurement Directive, article 38 (6).

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

(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.

See, e.g., the EU Public Procurement Directive, annex VIII.

See, e.g., in China, the Liuzhou City Rules of Implementation for Public Procurement through Online Procurement, article 19.

We have established an independent public procurement authority and introduced regular public expenditure tracking systems.

See, e.g., in China, the Shanghai Interim Measures for the Management of Online Public Procurement Bidding, articles 22 and 27 the Shenzhen City Interim Measures for the Management of Online Public Procurement Bidding, article 31 the Zhuhai City Interim Measures for the Management of Online Public Procurement Bidding, article 29 and the Hefei City Interim Measures for the Management of Online Public Procurement Bidding, article 25.

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.

See the Zhejiang Province Interim Measures for the Management of Online Public Procurement Bidding, article 8 the Shanghai Interim Measures for the Management of Online Public Procurement Bidding, article 6 and the Xuzhou City Interim Measures for the Management of Online Public Procurement Bidding, article 8.

Capacity building in public procurement agencies in the recipient countries

See, e.g., the Public Procurement Law of Poland (article 80(2)) and, in China, the Zhejiang Province Interim Measures for the Management of Online Public Procurement Bidding, article 22.