For the European Union, all public sector buyers will be required to do their procurement electronically by 2016, according to a new deadline.
The European Commission set the 2016 deadline because it believes that some 100 billion euros of the current 2 trillion euros spent annually on procurement can be saved in the European Union by mandating that companies use e-procurement tools.
Activities covered under the guidelines include posting all contract opportunities online, making all tender documents available and electronically associated with contracts, the electronic submission of bids, electronic acceptance, and making all communication digital or at least having a digital copy.
Government bodies will have to get with the program sooner as they have a mid-2014 deadline. The public sector will have some milestones to meet in 2014 around system development, but the communication and acceptance aspects have the 2016 date.
The EC itself will use a full e-procurement suite by 2015.
Beyond the cost savings, the EC said it’s hoping small and midsized businesses will benefit from a mandated standard because of a declining cost in technology and ability to compete for more contracts. The EC said implementation costs to public bodies will be offset by the savings.
“E-procurement represents significant untapped potential for the EU economy. It can simplify the way procurement is conducted, reduce burdens and costs, increase the participation of SMEs,” wrote EC commissioner Michel Barnier in a statement. “The sooner the transition is started, the sooner we will reap the benefits.”
Included in the EC timeline are some missed opportunities. In 2005 it proposed moving to e-procurement by 2010, but so far e-procurement this only represents 5 percent to 10 percent of all procurement activities, it said.
The EC will publish a progress report in mid-2013 to address any issues that arise out of comments or applications of e-procurement. – Geoff Whiting
EC affirms 2016 for electronic procurement
