Brussels unveils strategy for making e-procurement "the rule rather than the exception"

E-procurement should become the standard method of procurement adopted by public sector organisations in the European Union by mid-2016, the European Commission has proposed.

Launching its strategy for e-procurement, Brussels called for the method to become “the rule rather than the exception”

The Commission acknowledged that this transition would be “ambitious” but said a series of flanking measures would support all stakeholders – including SMEs – to be ready in time.

These measures in the strategy include:

• Providing financial and technical support for the development of e-procurement infrastructure via EU programmes and funding;
• Identifying and sharing best practice;
• Monitoring the level of take-up and the benefits of e-procurement; and
• Implementing a wide-ranging dissemination strategy to inform stakeholders about the opportunities and benefits offered by e-procurement.

Brussels said the European Commission would itself move towards full e-procurement by mid-2015. E-procurement solutions developed by the Commission will be made available to member states.

It insisted that the move towards e-procurement would generate significant savings for member states, and provide new sources of economic growth and jobs.

“Public entities that have already implemented e-procurement report savings of between 5% and 20% of their procurement expenditure,” Brussels said.

At the moment e-procurement is only used in 5-10% of procurement procedures.

Michel Barnier, Commissioner for internal market and services, said: "It's time to act. E-procurement represents a significant untapped potential for the EU economy. It can simplify the way procurement is conducted, reduce burdens and costs, increase the participation of SMEs and deliver better quality and lower prices. The sooner the transition is initiated, the sooner we will reap the benefits offered by e-procurement."

Under reform plans unveiled in December 2011, the Commission proposed that electronic means of communication should be made mandatory for certain phases of the procurement process (electronic notification of tender opportunities and electronic availability of tender documents) by mid-2014.

Central purchasing bodies would also move to full electronic means of communication, including electronic submission of bids by mid-2014.

Electronic means of communication would then be made mandatory for all contracting authorities and all procurement procedures by mid-2016 (two years after the expected transposition of the revised Directive). More detailed provisions would also be adopted to encourage interoperability and standardisation of e-procurement processes.