Electronic public procurement in the EU
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1 Electronic public procurement in the EU Recent developments EIPA International Public eprocurement seminar Donostia-San Sebastian, April 2008 Julia FERGER European Commission Directorate-General Internal Market & Services 1 OVERVIEW 1. What are we talking about? 2. The rules: the EU legal framework for e-procurement 3. Our actions: the EU Action Plan for e-procurement 4. Progress: recent policy developments 5. Moving ahead: priorities for the future 2 1
2 WHAT ARE WE TALKING ABOUT? The public sector: by far the biggest buyer in the economy Estimated total EU public procurement (2006): bn EUR (16% of EU GDP) Estimated total above thresholds (TED): 370 bn EUR (3% of EU GDP) Spain public procurement Estimated total public procurement (2006): bn EUR TED (2006): bn EUR 3 EU LEGAL FRAMEWORK: Principles Fundamental Principles (Treaty, case law) and Directives rules apply Non-discrimination Transparency Fair competition Avoid technological barriers: interoperability Flexible and technology-neutral framework 1) Dematerialise what is traditionally done on paper 2) Employ new purchasing techniques using the specific possibilities of electronic means 4 2
3 EU LEGAL FRAMEWORK: Scope Contract specifications Publication +Access to Bidding Evaluation +Submission of offer of offers +Contract award Contracting +Ordering Monitoring of Contract Ordering +Invoicing +Payment Electronic Purchasing Methods Choice of procedure Thresholds/ Rules of aggregation Shorter timelimits for online notices & electronic access to tender -Online standard forms for OJEU -CPV - TED Data integrity Confidentiality Security & Authentication Traceability Nondiscrimination - e-certificates - e-catalogues - DPS e-signatures evaluation Award - e-auctions Outside the scope of EU public procurement Directives Related legislation - E-commerce Directive - Electronic Signatures Directive - E-invoicing (VAT Directive) - Payment Services Directive - Data protection directive 5 EU LEGAL FRAMEWORK: Time-table Apr 2004 Entry into force of new public procurement directives /18/EC classic (supplies, services, works) /17/EC utilities (water, energy, transp, postal services) Dec 2004 Action plan on e-procurement ( ) Oct 2005 Regulation 1564/2005 on standard forms 31 Jan 2006 Transposition by MS (21 months) Nov 2007 Regulation 213/2008 on new CPV Review of Action Plan Prepare follow-up strategy 6 3
4 EU ACTION PLAN FOR E-PROCUREMENT: Goals I - Ensure a well-functioning Internal Market Action Plan objectives II - Efficiency Governance Competitiveness III - International framework for e-procurement 7 EU ACTION PLAN FOR E-PROCUREMENT: Actors DG INFSO DG DIGIT IDABC programme DG MARKT Other DGs policies (ENTR,TAXUD, JLS) CEN, ETSI,OASIS standardisat. fora EU Publications Office eprocurement Action Plan eprocurement Action Plan I2010 egov Action Plan Industry/ Software providers GPA, UNCITRAL, OECD Member States (Gvt,buyers) Suppliers 8 4
5 Action Plan implementation: enotification phase Contract specifications Publication +Access to Bidding Evaluation +Submission of offers of offers +Contract award Contracting +Ordering Monitoring of Contract Ordering +Invoicing +Payment Electronic Purchasing Methods Choice of procedure Thresholds/ Rules of aggregation Shorter time-limits for online notices & electronic access to tender -Online standard forms for OJEU -CPV - TED Data integrity Confidentiality Security & Authentication Traceability Nondiscrimination - e-certificates - e-catalogues - DPS - e-signatures evaluation Award -e-auctions Outside the scope of EU public procurement Directives E-commerce Directive Electronic Signatures Directive E-invoicing (VAT Directive) Data protection 9 Milestones I: Common Basic Tools E-notification Revised online standard forms: Regulation (EC) n 1564/2005 EU public procurement portals (SIMAP, TED) Common Procurement Vocabulary (CPV) Regulation (EC) n 213/2008 of 28 Nov 2007 (published 15 March 2007) 23 languages and more... Updated and completed codes New supplementary vocabulary Accessible at SIMAP
6 Example: TED (OJEU) - online business opportunities 11 Example: SIMAP - gateway for public purchasers 12 6
7 Example: N of notices received in XML format % struct ,09% ,50% ,20% ,40% Jan ,0% 25 0 janv-04 mars-04 mai-04 juil-04 sept-04 nov-04 janv-05 mars-05 mai-05 juil-05 sept-05 nov-05 janv-06 mars-06 mai-06 juil-06 sept-06 nov-06 janv-07 mars-07 mai-07 juil-07 sept-07 nov-07 janv-08 mars Action Plan implementation: esubmission phase Contract specifications Publication +Access to Bidding Evaluation +Submission of offers of offers +Contract award Contracting +Ordering Monitoring of Contract Ordering +Invoicing +Payment Electronic Purchasing Methods Choice of procedure Thresholds/ Rules of aggregation Shorter time-limits for online notices & electronic access to tender Data integrity Confidentiality Security & Authentication Traceability Nondiscrimination - Standard forms - e-certificates for publication - e-catalogues in OJEU -DPS -CPV -- e-signatures - TED evaluation Award e-auctions Outside the scope of EU public procurement Directives E-commerce Directive Electronic Signatures Directive E-invoicing (VAT Directive) Data protection 14 7
8 Milestones IIa: Interoperable tools & standards Explanatory tools Preliminary functional requirements & Learning demonstrators (April 2005) IDABC XML model schemas (April 2005) Explanatory Document on EU Directives (June 2005) Interoperability studies Compliance verification mechanism(s) (Sept. 2007) e-catalogues (Nov. 2007) e-signatures (Dec. 2007) e-signatures Action Plan (mid-2008) e-certificates & attestations (June 2008) 15 Milestones IIb: Interoperability pilot projects CIP large-scale cross-border e-procurement pilot PEPPOL ( ) Member States project, EU co-financed 12 MS participants Provide common specifications & building blocks in 4 areas e-signature Virtual Company Dossier (e-certificates) e-catalogues (pre- and post-award) e-invoicing CEN e-procurement standardisation workshop ( ) 16 8
9 Example: ecatalogues - preliminary functional requirements DG MARKT study (2007), vol. III Mandatory Requirements Information to be given in tender if used for submission of offers, Contracting Authorities must define specifications for acceptable ecatalogues in tender Creation & submission of offer in form of ecatalogue: Conditions for electronic receipt of offers apply (confidentiality, integrity, 4-eyes pple, time-stamping, traceability) Allow for punch-out : retrieval of catalogue data from supplier website only possible according to pre-determined schedule & arrangements Optional requirements Tools for technical compliance: Make available to suppliers tools for verifying the technical compliance of their ecatalogues prior to submission ecatalogue comparison tool: Simplify tender evaluation process by automatically comparing and evaluating submitted ecatalogues Technical verification technical compliance of ecatalogues with formatting specifications may be verified during tender submission but only in automated way to preserve integrity and confidentiality of data 17 Example: ecatalogue content standardisation Categories Trading partner ID Product Identification Product Description Manufacturer Product Categorisation Product Quantity Pricing & Discount Delivery information Handling & Packaging Warranty and contracting Information Catalogue Validity Dates Invoicing Common Catalogue Contents -Supplier Identification -Product Identification code -Product Name -Product Description -Technical Information -Picture -Product Description URL -Manufacturer Name -Manufacturer Part Number -CPV Code, UNSPSC Code -Unit -Quantity per Unit -Measurement Unit -Minimum Quantity (Smallest delivery -Price -VAT -Price per Unit -Currency Code (Type) -Discount -Delivery Time -Stock Quantity -Units in Package -Warranty -Contracting Information -Start Date -End Date -Revision date -Invoicing Information Description Identification code of the supplying organisation Unique code for a specific product/service Description of the product and its characteristics Name and identification code of the product manufacturer Class or category of the product according to classification system Quantity ordering details such as: -Package type or physical unit in which the product is sold -Minimum n of orderable units the supplier will accept on purchase order Information about prices, discounts, taxes, terms of payment, delivery charges Information about lead time and delivery dates, stock availability, billing addresses, contact information, etc. Quantity of units of use inside the orderable package size of the product. Agreement terms Attributes for the entire catalogue, specifying from and until when the offered products are available Information for issuing invoices in electronic format 18 9
10 Example: ecatalogue standardisation - product classification schemes CPV UN/SPSC ecl@ss NCS GPC eotd Responsible Organization EC UNDP Cologne Institute for Business Research NATO Global Standards One (GS1) ECCMA Europe / Mandated by EU law for Geographical Focus procurement notification Global Cross-Industry Global / Mainly Germanspeaking countries Global Designed to meet the needs of NATO Global Global Open Source & Open Standard Hierarchy Levels Frequency of Updates No / Available for free Divisions, Groups, Classes, Categories Periodically (less than once per year) Yes / Available for free Segment, Family, Class, Commodity, Business Function Periodically Yes / Available for free Segments, Main Groups, Groups, Commodity Classes One major & one minor update per year No Groups, Classes Bi-monthly Yes/Available for free Segment, Family, Class, Brick Quarterly Yes / Available for Free Assigned to several external class hierarchies (ecl@ss, CPV, UN/SPSC) Monthly Multilingualism 20 Official EU Languages EN, FR, ES, PT, DE, IT, DA, NL, Korean, Japanese, Chinese Further on demand DE, EN, FR, ES, IT, Chinese Multilingual EN EN, FR, ES, PL, DE, NL, CS Support of Attributes Terminology & Synonyms (new version) (new version) No No Yes Synonyms Yes Synonyms Yes No Yes Synonyms 19 Action Plan implementation: post-etendering Contract specifications Publication +Access to Bidding Evaluation +Submission of offers of offers +Contract award Contracting +Ordering Monitoring of Contract Ordering +Invoicing +Payment Electronic Purchasing Methods Choice of procedure Thresholds/ Rules of aggregation Shorter time-limits for online notices & electronic access to tender Data integrity Confidentiality Security & Authentication Traceability Nondiscrimination - Standard forms - e-certificates for publication - e-catalogues in OJEU - DPS -CPV - e-signatures - TED evaluation Award -e-auctions Outside the scope of EU public procurement Directives E-commerce Directive Electronic Signatures Directive E-invoicing (VAT Directive) Data protection 20 10
11 MILESTONES III: post-award & B2B tools Feasibility studies European e-invoicing framework (EEF) Preparatory task force e-invoicing ( ) Expert group e-invoicing ( ) COM e-invoicing pilot 21 MOVING AHEAD: future e-procurement policy Short term priorities ( ) Objective: each MS has operational e-procurement Continue on-going implementation efforts Review progress of Action Plan Move into operational phase E-Signatures Action Plan Mid-long term priorities ( ) Objective: generalised interoperability across EU COM policy document on follow-up strategy (to be issued 2009/2010) Complete full operational + interoperable cross-border e-procurement environment 22 11
12 MOVING AHEAD: Action Plan Progress Review Action Plan calls for progress review at end 2007 Work started 15 January 2008, results expected mid-2009 Evaluate the effective up-take of e-procurement extent to which PP procedures have been digitised How: legal, organisational, economic, technical aspects How the AP contributed to it 4 work packages 1) Overview of the state of play 2) Assess extent to which AP objectives have been reached 3) Identify issues, gaps + recommendations 4) Provide improved methodology for future monitoring 23 FOR MORE INFORMATION DG Markt e-procurement (Action Plan, explanatory, studies) IDABC e-procurement (e-procurement tools, technical background, demonstrators) SIMAP -TED (EU PP portal, e.g. standard forms, publication of notices, links) Multilateral Development Banks e-gp site (explanatory, assessment tools) 24 12
13 Thank you! 25 13
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