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2. e-Procurement New ways of public purchase

6. Process Simplification Shortened tendering process Close to zero time to market On-line ordering (e-procurement) Service efficiency and quality Focus on quality Wide range of options within contracts Systematic service levels assessment GoalsStrategies Transparency and timely tracking in PA expenditure Market dynamics enhancement Competitiveness Scale economies through demand aggregation and purchasing standardization Cost saving Side-effects Challenges for administrations

7. e-procurement All kinds of electronic purchasing techniques All kinds of electronic purchasing techniques No difference in regard to the principles of paper based procurement No difference in regard to the principles of paper based procurement Contracting authorities may make use of electronic purchasing techniques, providing such use complies with the rules drawn up under the Directive 2004/18/EG and the principles of equal treatment, nondiscrimination and transparency. Contracting authorities may make use of electronic purchasing techniques, providing such use complies with the rules drawn up under the Directive 2004/18/EG and the principles of equal treatment, nondiscrimination and transparency.

8.  Simplify the entire supplier selection process, cutting tender time and costs  Assure transparency, security and “par condicio” among participating suppliers  Reduce participation costs to suppliers Purchasing procedures based on an electronic system that can assess the proposed goods & services through economic and/or technical criteria will:

9. ADVANTAGES to Public Administrations:  costs and process cutting  potential broadening of suppliers base  easy access to selected goods (pre-defined quality standards)  information transparency and easy comparison among goods  purchasing tracing out and consequent expenditure monitoring to Suppliers:  selling cost reduction (due to broadening of catchment's area and no intermediation cost)  major visibility  more competitiveness especially in local markets (for small medium sized enterprises)  B2G introduction, especially for large sized enterprises, in addition to existing B2B and B2C

10. Transparency increasing Offering expansion e-procurement allows to improve public procurement efficacy and efficiency Greater number of public supplier (for example with Marketplace and new kind of auctions design) Greater spread of information New processes and competencies, innovative technology and systems Purchasing-related process simplification Cost reduction, investments increase and recovery on resources Market greater competition

11. Frame contracts : the process simplification …to the new process of goods & services procurement From the traditional… On-lineOrder Needs Analysis Goods/ Services Delivery Payment Supplier selection Evaluation and award procedure Draft for ten- der/contract documents Contract signing

12. Types of (e)-Procurement Ordering online Ordering online Ordering and payment online Ordering and payment online Electronic Procurement Electronic Procurement Electronic auction Electronic auction Dynamic purchasing systems Dynamic purchasing systems

13. ElectronicShopsElectronicShops Purchases within frame contracts for Goods & Services: Large volumes Large volumes Standardized Standardized Low price volatility Low price volatility Slow obsolescence Slow obsolescence Demand aggregation Demand aggregation On line Auctions Auctions Frame contracts on Goods & Services: SpecializedSpecialized High price volatilityHigh price volatility Rapid obsolescenceRapid obsolescence ASP possibility towards other administrationsASP possibility towards other administrations MarketplaceMarketplace Purchases below the EU threshold for Goods & Services: Low costLow cost Highly fragmentedHighly fragmented Multi productsMulti products and multi supplier (pre-selectedproducts)

14. E-shops E-shops represent an open window on the web in which goods and services selected through tenders and frame contracts are available to PA procurement offices registered to the Program Traditional and electronic tenders Product selection and online ordering

15. The Public Administrations’ Marketplace  The Marketplace is a virtual market in which public administrations can select goods & services offered by several suppliers, for purchases below the EU threshold  The marketplace is open to qualified suppliers (and goods) according to selection criteria which are not particularly restrictive  The entire process is digital using digital signature in order to legally guarantee the transactions Qualified suppliers selected through a qualification process, starting from the date of publication of the “qualification notice” Suppliers Central Administrations Universities Local bodies Health bodies Buying administrations Public Administrations’ Marketplace Market Qualification notice (public announcement)

16. e-procurement e-procurement Public sector Bidder Tender Offer Documents Offer Safety server Finish Evaluation Decision Award Contract Start Project planning

17. Electronic auction Definition An ‘electronic auction’ is a repetitive process involving an electronic device for the presentation of new prices, revised downwards, and/or new values concerning certain elements of tenders, which occurs after an initial full evaluation of the tenders, enabling them to be ranked using automatic evaluation methods.

18. Electronic auctions General rules Electronic auctions are defined in the Directive and governed by specific rules in order to ensure that they operate in full accordance with the principles of equal treatment, non-discrimination and transparency. Electronic auctions are defined in the Directive and governed by specific rules in order to ensure that they operate in full accordance with the principles of equal treatment, non-discrimination and transparency. They deal only with contracts for works, supplies or services for which the specifications can be determined with precision. Such may in particular be the case for recurring supplies, works and service contracts. With the same objective, it must also be possible to establish the respective ranking of the tenderers at any stage of the electronic auction. They deal only with contracts for works, supplies or services for which the specifications can be determined with precision. Such may in particular be the case for recurring supplies, works and service contracts. With the same objective, it must also be possible to establish the respective ranking of the tenderers at any stage of the electronic auction.

19. Electronic auctions General rules Recourse to electronic auctions enables contracting authorities: –to ask tenderers to submit new prices, revised downwards, and when the contract is awarded to the most economically advantageous tender, also to improve elements of the tenders other than prices. –In order to guarantee compliance with the principle of transparency, only the elements suitable for automatic evaluation by electronic means, without any intervention and/or appreciation by the contracting authority, may be the object of electronic auctions, that is, only the elements which are quantifiable so that they can be expressed in figures or percentages. –On the other hand, those aspects of the tenders which imply an appreciation of nonquantifiable elements should not be the object of electronic auctions. Consequently, certain works contracts and certain service contracts having as their subject matter intellectual performances, such as the design of works, should not be the object of electronic auctions.

20. Electronic Auction General rules In open, restricted or negotiated procedures the contracting authorities may decide that the award of a public contract shall be preceded by an electronic auction when the contract specifications can be established with precision. In the same circumstances, an electronic auction may be held on the reopening of competition among the parties to a framework agreement and on the opening for competition of contracts to be awarded under the dynamic purchasing system.

21. Electronic Auction General rules The electronic auction shall be based: either solely on prices when the contract is awarded to the lowest price either solely on prices when the contract is awarded to the lowest price or on prices and/or on the new values of the features of the tenders indicated in the specification when the contract is awarded to the most economically advantageous tender. or on prices and/or on the new values of the features of the tenders indicated in the specification when the contract is awarded to the most economically advantageous tender. 3. Contracting authorities which decide to hold an electronic auction shall state that fact in the contract notice. The specifications shall include, inter alia, the following details: (a) the features, the values for which will be the subject of electronic auction, provided that such features are quantifiable and can be expressed in figures or percentages (b) any limits on the values which may be submitted, as they result from the specifications relating to the subject of the contract (c) the information which will be made available to tenderers in the course of the electronic auction and, where appropriate, when it will be made available to them (d) the relevant information concerning the electronic auction process (e) the conditions under which the tenderers will be able to bid and, in particular, the minimum differences which will, where appropriate, be required when bidding (f) the relevant information concerning the electronic equipment used and the arrangements and technical specifications for connection.

22. Electronic Auction General rules Before proceeding with an electronic auction, contracting authorities shall make a full initial evaluation of the tenders in accordance with the award criterion/criteria set and with the weighting fixed for them. All tenderers who have submitted admissible tenders shall be invited simultaneously by electronic means to submit new prices and/or new values; the invitation shall contain all relevant information concerning individual connection to the electronic equipment being used and shall state the date and time of the start of the electronic auction. The electronic auction may take place in a number of successive phases. The electronic auction may not start sooner than two working days after the date on which invitations are sent out.

23. Electronic auctions General rules When the contract is to be awarded on the basis of the most economically advantageous tender, the invitation shall be accompanied by the outcome of a full evaluation of the relevant tenderer, carried out in accordance with the weighting. When the contract is to be awarded on the basis of the most economically advantageous tender, the invitation shall be accompanied by the outcome of a full evaluation of the relevant tenderer, carried out in accordance with the weighting. The invitation shall also state the mathematical formula to be used in the electronic auction to determine automatic rerankings on the basis of the new prices and/or new values submitted. That formula shall incorporate the weighting of all the criteria fixed to determine the most economically advantageous tender, as indicated in the contract notice or in the specifications; for that purpose, any ranges shall, however, be reduced beforehand to a specified value. The invitation shall also state the mathematical formula to be used in the electronic auction to determine automatic rerankings on the basis of the new prices and/or new values submitted. That formula shall incorporate the weighting of all the criteria fixed to determine the most economically advantageous tender, as indicated in the contract notice or in the specifications; for that purpose, any ranges shall, however, be reduced beforehand to a specified value. Where variants are authorised, a separate formula shall be provided for each variant. Where variants are authorised, a separate formula shall be provided for each variant.

24. Electronic auctions General rules Throughout each phase of an electronic auction the contracting authorities shall instantaneously communicate to all tenderers at least sufficient information to enable them to ascertain their relative rankings at any moment. They may also communicate other information concerning other prices or values submitted, provided that that is stated in the specifications. They may also at any time announce the number of participants in that phase of the auction. In no case, however, may they disclose the identities of the tenderers during any phase of an electronic auction.

25. Electronic auctions General rules Contracting authorities shall close an electronic auction in one or more of the following manners: –in the invitation to take part in the auction they shall indicate the date and time fixed in advance –when they receive no more new prices or new values which meet the requirements concerning minimum differences. In that event, the contracting authorities shall state in the invitation to take part in the auction the time which they will allow to elapse after receiving the last submission before they close the electronic auction –when the number of phases in the auction, fixed in the invitation to take part in the auction, has been completed. When the contracting authorities have decided to close an electronic auction, the invitation to take part in the auction shall indicate the timetable for each phase of the auction. After closing an electronic auction contracting authorities shall award the contract on the basis of the results of the electronic auction.

26. Dynamic purchasing systems A ‘dynamic purchasing system’ is a completely electronic process for making commonly used purchases, the characteristics of which, as generally available on the market, meet the requirements of the contracting authority, which is limited in duration and open throughout its validity to any economic operator which satisfies the selection criteria and has submitted an indicative tender that complies with the specification.

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