Executive Summary of Guide on eprocurement INFORMATION SECURITY OBSERVATORY

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1 Executive Summary of Guide on eprocurement INFORMATION SECURITY OBSERVATORY

2 Index 1. Objectives of the Guide 2. Intended Audience 3. Concept and stages o eprocurement 4. Level of implementation in Spain and Europe 5. eprocurement benefits 6. Legal framework 7. Signature and electronic ID as guarantee 8. Security and interoperability as a basis for etrust 9. eprocurement and etendering Buyer profile Electronic notifications and certifications The procurement process Tenderers registry The electronic auction Types of electronic platforms State Procurement Platform 10. National and International experiences 11. Recomendations 2

3 Objectives of the Guide Identify the benefits and risks associated with the use of technological media in eprocurement processes. Identify the key technology requirements that must be analyzed when implementing, hiring or using an etendering and eprocurement platform. Identify the minimum requirements for safety and interoperability that must be analyzed when implementing, hiring, or using an etendering and eprocurement platform. Avaible on: Analyze the benefits derived from the use of etendering and eprocurement, especially from the standpoint of improvements in the effectiveness and efficiency in the management of procedures. Promoting eprocurement as an opportunity for administrations and businesses, especially small and medium companies. 3

4 Intended Audience The guide is addressed to two groups of participants in public procurement processes. PUBLIC ADMINISTRATION PROVIDER COMMUNITY GENERAL ADMINISTRATION OF THE STATE REGIONAL ADMINISTRATION LOCAL ADMINISTRATION PROVIDERS OF PROCUREMENT PLATFORMS TENDERERS DEPENDENT ORGANIZATIONS 4

5 Concept and stages of eprocurement eprocurement includes the introduction of electronic procedures to support the various stages of the procurement process, ie, publication of notices, provision of specifications, tendering, evaluation, awarding, ordering, invoicing and payment. Green Paper on expanding the use of e-procurement in the EU eprocurement Award / Tender Management / Procurement Publication Send Tenders Evaluation of tenders Winner selection Implementation Procurement Order Invoicing and Management 5

6 Level of implementation in Spain and Europe (I) According to official data published by the National Observatory of Telecommunications and Information Society (ONTSI) under the Ministry of Industry, Tourism and Trade in 2010: 9% of companies in Spain use Internet to submit their tenders. 13% of EU companies use Internet to submit their tenders. Source: Eurostat 6

7 Level of implementation in Spain and Europe (II) s. d 0-10 % % % % % 7

8 eprocurement Benefits IMPROVE EFFICIENCY AND COST SAVINGS Time reduction in preparation process Reduction of the resources involved. Increase in the number of competitors. Reduction of the administrative costs. TRANSPARENCY, ACCESSIBILITY AND CONCURRENCY Increasing awareness of procurement opportunities. Increased security of files. It helps the access of small and medium business. Full accessibility to the procedures. IMPROVING MARKET INTEGRATION AND COHESION Centralized comunications Improve integration and cohesion of EU markets. 8

9 Legal Framework (I). EU level eeurope 2002, 2005, i2010 and i2020. Action plans on egovernment following these principles: Equitable treatment of tenderers. Confidentiality and Security about all information. Tracking of all events. Availability and economy. Interoperability and compatibility of systems. Effectiveness processes. Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts 9

10 Legal Framework (II). State level The implementation of etendering and eprocurement system requires consideration of two regulatory blocks: The report on Procurement, headed by the Law 30/2007 on Public Sector Contracts. ÁMBITO ESTATAL The report on egovernment, headed by the Law 11/2007 on Electronic Access of Citizens to Public Services. Law 30/2007 on Public Sector Procurement (LCSP) Law 31/2007 of Contracts in the water, energy, transport and postal services Law 34/2010 Amendment of Law 30/2007, 31/2007 and 29/1998 RD 817/2009 Regulation of development of LCSP Instruction EHA1307/2005 Use of electronic means in procurement procedures Law 11/2007 Electronic Access of Citizens to Public Services (LAECSP) RD 1671/2009 Regulations implementing the LAECSP RD 3/2010 y 4/2010 National Security Framework and Interoperability Technical Standards for Interoperability Ordinances and Decrees of the use of electronic means for the administrative procedure 10

11 Signature and electronic ID as guarantee (I) During the tender and eprocurement process is essential the use of electronic signature certificates that guarantee the following requirements: All administrative act that has legal effect in the procurement process must be properly signed by a certificate of recognised electronic signature. If it is not used, the acts will not cause legal effects. 11

12 Signature and electronic ID as guarantee (II) The electronic ID chip can prove the identity and integrity on all signed documents. The electronic ID can be used as a means of signature at any stage in tendering process and procurement. The electronic ID can be used as means of signature both by tenderers and as part of public staff. When we use the electronic ID to sign documents or acts committed by a legal person or public officer must also certify the powers and authority of the signer. 12

13 Security and interoperability as basis for etrust (I) Any platform that will be used to carry out the etendering and eprocurement process must comply with RD 3/2010, National Security Framework, ensuring at least the following principles in relation to all information handled during the procurement process: CONFIDENTIALITY AVAILABILITY INTEGRITY TRACEABILITY AUTHENTICITY DATA RETENTION All principles are properly organized in three main areas that should be checked and if necessary, implemented in the system: ORGANIZATION LEVEL OPERATIONAL LEVEL PROTECTIVE MEASURES 13

14 Security and interoperability as basis for etrust (II) Interoperability is the capacity of information systems and procedures, to enable the exchange of information and knowledge between them. Any system of etendering and eprocurement must comply with RD4/2010 National Interoperability Framework (ENI) and with different technical standards that specifically develop certain aspects covered by the ENI. Interoperability should be analyzed from three perspectives: Organizing: ability of institutions and processes to achieve mutually agreed achievements. Semantic: the information exchanged can be automatically interpretable and reusable. Technical: Interaction of technological systems (interfaces, interconnectivity, data integration and services). 14

15 Buyer profile What is this? It is the set of information on the procurement activities of different public authorities that is available to interested parties (especially the tenderers) with easy access through Internet, in order to ensure transparency of the contracting activity that the entity carries out. What does it contain? Tenders called by the Public Administration. The composition of the procurement board. The expert committee composition. The award of contracts. The signing of contracts. The conclusion of contract framework agreements. The statement to keep the effects of a contract previously declared null and void by the contracting authority. All information that could increase the openness of the procurement process. Where is it published? STATE PUBLIC SECTOR STATE PROCUREMENT PLATFORM OTHER GOVERMENTS VIRTUAL BRANCH 15

16 Electronic notifications and certifications To make electronic communications the Governments must fulfill the following requirements: To have prior explicit consent by the addressee of the comunications. To have a explicit consent for each procedure. It is not valid a general consent. : The article 27 of Law 11/2007, allows the government to establish as mandatory the use of the electronic channel as a medium of communication, provided that the following requirements are met: Be previously authorized by regulation. That tenderers are legal persons or groups of individuals, clearly defined. That tenderers have enough conditions, economic, technical, professional dedication or otherwise credited to the use of electronic media. That tenderers have guaranteed access and availability of technological media. 16

17 The eprocurement process (I) From the point of view of eprocurement process, it presents two essential stages in which both the technical elements, such as legal, are very important. AWARD etendering (Front office) MANAGEMENT eprocurement (Back office) 17

18 The eprocurement process (II) AWARD etendering (Front office) MANAGEMENT eprocurement (Back office) 1 The process begins with the publication of specifications through the buyer profile of each public administration. In the case of organizations members of the Central Government, they have to publish it in the State Procurement Platform. Publication Access and download Contractor Profile State Procurement Platform Official Journal 18

19 The eprocurement process (III) AWARD etendering (Front office) MANAGEMENT eprocurement (Back office) 2 Tenderers may request clarification on conditions and submit tenders. To do this, they must use electronic signature certificates and time stamps to guarantee the identity, integrity and authenticity of acts. After the deadline for submitting bids, proceeds to constitution of the evaluation team. Then, the electronic opening offers start. Clarifications Submision of tenders Confirmation of receipt Constitution of procurement table enotifications Receipt electronic Certifying signature (esign) Recognised electronic signature + encryption Minimum quorum Certification service provider Opening envelopes Time Stamp 19

20 The eprocurement process (IV) AWARD etendering (Front office) MANAGEMENT eprocurement (Back office) 3 Opened the bids, the procurement board will begin to perform the evaluation of the same, being requested the correction of errors if it was necesary. After the correction, the procurement table will make the award of contract to the tenderer that better meets the requirements previously established in the specifications, completing the procedure with the signing of the contract. Assess of tender Rectifications enotifications Award Signing of contract Objetive criteria Remediable Unremedied enotification Biding Especifications Recognised electronic signature + encryption + Time stamps Certification service provider 20

21 The eprocurement process (V) AWARD etendering (Front office) MANAGEMENT eprocurement (Back office) 1 After the award of contract, the management and execution phase begins, centered largely on the internal management of the tender dossier. This phase will include the modifications, terminations, transfers and / or subrogation of the contract that could occur during its execution. Internal area of the contracting management 2 After this phase, and out of scope of the established by Law 30/2007 (except for the provisions of Final Provision.9 º) begins the stage of electronic invoicing, archiving and custody of dossier. At this stage, it is mandatory to use time stamp and electronic signature certificates to ensure compliance with ENI and ENS, as well as technical standards for interoperability. eprocurement einvoice Management of files Manage the relationship between the tenderers and Public Administration, once awarded the contract Advanced electronic signature Interconnection Electronic file of case It is mandatory to send and receive electronic invoices to public authorities 21

22 Register of tenderers What is this? It is a tool to ease, simplify and streamline the legal procedures for the award of public contracts. All companies registered in the Register of Tenderers are not required to provide documentation about their legal ability. What does it contain? The register of tenderers allows recognition in front of all bodies in the procurement public sector, unless proved otherwise, the qualifications of the entrepreneur in relation to: Legal capacity Capacity to exercise rights Representation. Professional and business competency Economic and financial solvency. Classification. Existence or not of any of the prohibitions for contracting. Who is responsible? PUBLIC SECTOR ROLECE OTHERS REGISTRIES REGIONAL REGISTRIES 22

23 Electronic auction What is this? It is a specific process for submission of financial bids, revised downwards, which allows the automatic classification of the results. It is not a new procurement procedure itself, but a way to carry out certain procurement procedures. To have a platform or electronic tool that allows the automatic assessment (without human intervention) of tenders submitted. Requirements Explicitly included in the tender conditions the items listed in Article of Law 30/2007. To publish the notice, expressing that the procedure used will be the electronic auction. SECTOR PÚBLICO 23

24 Types of electronic platform PLATAFORMAS DESARROLLADAS A MEDIDA PLATFORM CUSTOMIZED PLATAFORMAS DESARROLLADAS A MEDIDA LICENSED PLATFORM PLATFORMS PROVIDED AS A SERVICE (SAAS) ADVANTAGES High adaptation to the specific needs. Full control of functions. Easy integration with other systems. Enables the reuse by others. Lower cost (license). Shorter time for implementation. Maintenance carried out by qualified personnel. Higher guarantees of operation (tested). Low cost. Short-term implementation. High Scalability. Integral services (accommodation, medical user, maintenance, update). DESADVANTAGES Expensive. Long-term implementation. Own specialized staff (SW development and legal). Requires physical infrastructure. Dependency of external provider. Requires physical infrastructure. Inability to reuse. Difficult integration with other systems. Full dependence on an external provider. Relocation of information and loss of control. Inability to reuse. 24

25 State Procurement Platform What is this? It is a centralized electronic platform, available to all bodies of public sector procurement to give advertising through Internet about the public notices and awards. What does it contain? Tenders called by the Public Administration. The composition of the procurement board. The expert committee composition. The award of contracts. The signing of contracts. The conclusion of contract framework agreements. The statement to keep the effects of a contract previously declared null and void by the contracting authority. All information that could increase the openness of the procurement process. Who use it? CONTRACTING AUTHORITIES OF THE STATE PUBLIC SECTOR They are required to integrate fully into the State Procurement Platform (PLACE), manage and disseminate their contracts exclusively through this REGIONAL AND LOCAL SECTOR They may use PLACE and other centralized trading platforms created by Regional or local authorities 25

26 National and international experiences Some of the national and international more relevant experiences in Electronic Procurement: 26

27 Recommendations (I): to the legislature Develop specific regulations on etendering and eprocurement, in coordination with other EU states. Regulate expressly that the procurement process can be carried out exclusively through electronic means. Promote coordination between various registry of tenderers (the ROLECE and CCAA registry). Promote among all Member States clear and express rules regarding automatic recognition and centralized electronic signature certificates issued in other states. Promote normatively the use of electronic platforms that promote cost savings. Promote the use of etenderings and procurement platforms, through financial assistance, announcements of awards and funding lines for the development of egovernment. 27

28 Recommendations (II): to the Public Administration Select the most appropriate platform to the entity requirements. Comply with procurement rules and egovernment legislation. Guarantee the identity, integrity, confidentiality, Nonrepudiation and reliable temporal relation of the actions that produce legal effects in the tendering and contracting procedure. Verify compliance with the ENS and ENI. Promote the use of certified platforms in accordance with international safety standards. Ensure that the platform meets at least the average level of accessibility for disabled people. Promote among the public employees training on the use of ICT in public procurement processes. 28

29 Recomendations (III): to the tenderers Get the electronic signature certificates to participate in processes of tendering and eprocurement. Apply for registration in tenderers registry Issue electronic invoices Have electronic signature certificates issued in states where we are going to tender electronically, while there is no centralized system for the automatic verification of the certificates issued from other states. Require to the public authorities that they issue certificates or electronic receipts, that they are duly signed to ensure the presentation of the documentation associated with procurement processes, as well as the exact time of the presentation. Promote among their employees to use information technologies. 29

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