Purchase of micro computers Henry Alexandre, Deputy director / Central procurement agency Cyprus, 2005, July 4th

Purchase of micro computers Austria Belgium Cyprus Denmark France Greece Germany Ireland Italy Portugal Sweden 11 answers

Negotiated : 3Alone : 5Involved : 3  “The standards and the technical specifications are negotiated with the future users “  “Both. The public organisations that reported the highest demands are actively involved into the development of the technical specifications. The (agency) finally decides over different requirements.”  “These standards are defined by (agency) – without negotiations with future users – on the basis of quantitative and qualitative analyses of past purchases. Moreover, PAs are not obliged to buy goods and services offered by our frame contracts. “ What standards are used? Is it the responsibility of the purchasing department only or negotiated with the future users?

1or 2 configurations : 4 3 configurations : 2 More : 5 If you have not defined the configurations precisely, does your contract cover a collection of components with which the users build their own configurations ? All countries allow options but no one practices a real assembling system How many different configurations?

 Only technical performances “Processor (speed) : Benchmark-value Bapco Sysmark 2004 Office overall: 178” “For each specified hardware configuration we also mention the general tasks we assume the PC shall be able to perform, and we require specific level of benchmark test result (SYSmark).” Do you specify only technical performances (e.g. hard disk capacity, processor speed, amount of RAM) or do you also (or only) specify the functions or services which the machines must be able to perform? : 5  Both : 6

…but benchmark results are technical performances

512 Mb ram 2.8 gHz Hard disk 60 GB CD and DVD drive CD writer but no DVD writer Integrated audio 17'‘ TFT Standard « median » EU LL desktop

Approx.+ 15% Approx + 20% Approx % Price for the standard or most standard configuration (€) Market price of the same machine Prices

Ram Proc.Amd 2800+P4, 2.8GHz3 GHz Disk40 GB80 GB200 GB CD dyesyesyes DVD dnoyesyes CD wnoyesyes DVD wnonoyes ScreenTFT 17TFT 17TFT 19 Qy ? Price€ 443€ 558€ 1000 LowestAverageTop

Do you know, at the competitive bidding stage, the number, even approximately, of devices which are going to be bought? Yes : 8No : 3 Do you specify in the contracts the order minimums, maximums, in number, in values ? More generally, on what economic basis (forecast sales) can competitors prepare their bids ? The contract contains a commitment (min, max or both) : 6 An estimation is given during the tendering phase: 3 Nothing : 2

Included : year+ option 2 years (2) - 2 years (2) - 3 years (1) - 3 years + option 2 years (2) - 5 years (1) Separately : 2 Does the purchase include a period of maintenance or is this service purchased separately Delivery deadlines? 14 days, 5 to 10 days, 1 month

Awarding date : from March 2003 to June 2005 Monetary value : from 0.8 M€ to ? Length of contract (including prolongation) : - 6 months : months : months : months : 3 Contracts currently in force

Open : 10 « no auction » : one Paper based single round : 7 Online single round : 2 Online descending auction : 1 Auction format

Meat (10) Lowest price : 1 50% 85%15% 35%65% 70%30% « economical « technical » Price and discount, inclusive guarantee - Point factor : 4 Technical conditions - Point factor : 3 Environmental conditions - Point factor : 3 Assortment - Point factor : 2 Out of full 100% where product is 70% and services is 30% the divide of the 70% of product part, Economical point takes 45% and the technical point 55%. Awarding criteria

O S but no office suite in the same contract : 5 O S and office suite in the same contract : 5 O S and office suite bought separately : 1 Do you purchase basic software (operating system and office automation suite) in the same contract as for machines or separately?

Yes : 6No : 5 (1 will do it next time) How many competitors bid for the contract (if lots, how many for each lots) ? What types : manufacturers, distributors, assemblers? - 2 M + 2 D - 5 mainly D - 5 D -5 D or A - 6 M or D - 7 D - 1 M + 4D + 2 A - 14 M or D - 14 M or equal - 14 M - 80 mainly D and M Leasing possibility? Yes : 3, No : 8 During the invitation to tender phase did you require machines to be made available for evaluation?

Who uses the contract and how ? State administrations only : 5 All public sector : 5 Ordering without formality : 7 Prior formalities : 3 Online ordering possible : 7 Only fax or letter : 3

« Reporting volume and value for each client »: 8 - confirmation for each order: 2 - monthly : 3 - quaterly : 1 - yearly : 1 - unknown periodicity : 1 No report or unknown reporting : 3 Do you receive a commission? Yes : 3 No : 8 What information must the contract holder provide you with ?

Who manages complaints and claims? the central procurement agency : 4 the client administration : 3 first the client then the agency : 2 - unknown : 2 Do you provide for penalties? All countries have penalties provisions for delivery delay. Penalty is a percentage of the order value, minimum penalty starts from 0.002% per day, max up to twice the order value. Who gets the value? Mostly the client Are penalties usually applied? No or rarely : 7 ; do not know : 4

Innovative practices Global contract with a service provider instead of purchasing PCs : The option exists in 1 country 5 countries are considering it Outsourcing : Rarely or partly : 2 No : 9