How Does on-Line Bidding Support Public Sector Procurement Goals of Transparency and Accountability?

EPROCUREMENT

1. How does on-line bidding (e-procurement) support public sector procurement goals of transparency and accountability?

The public sector institutions must consider a great deal when they spend public money, given to level of scrutiny that they are subject of ,t also hey are tangled in a web of trade treaties, legislation and government directives. However, their transparency and full disclose of all the evaluation criteria as part of their solicitation documents regardless of the format used  is guarantee of traceability and accountability.

 The public sector’s procurement processes are a matter of public record because of the scope of public access laws. Further, many governments self-impose an obligation to provide debriefings to unsuccessful proponents. While a private sector entity may not want to expose them self out to the open, old and antiques practices are commonly undertaken by  the private sector. Transparent evaluation, and supplier debriefings, improves  and maintain relationships with the vendor base and, in cases where a supplier is dissatisfied with the outcome of a competitive process, allows them a constructive opportunity to discuss the process without resulting in a formal legal challenge.

1. What are the benefits of e-procurement?

E-procurement connects businesses directly to suppliers , facilitating procurement with supplier.  Companies have embraced e-procurement to increase productivity, provide visibility into day to day transactions and make it easier for users to get the supplies that they need.

 The benefits provided by e-procurement are listed below:

• Reducing costs

Costs can be reduced by leveraging volume, having structured supplier relationships and by using system improvements to reduce external spend while improving quality and supplier performance. E-procurement eliminates paperwork, rework and errors.

• Visibility of spend

Centralized tracking of transactions enables full reporting on requisitions, items purchased, orders processes and payments made.

Controls

Standardized approval processes and formal workflows ensure that the correct level of authorization is applied to each transaction and that spend is directed to draw off existing contracts.

Using technology

Software tools are needed to create the standard procurement documentation: electronic requests for information (e-RFI), requests for proposal (e-RFP) and requests for quotation (e-RFQ). These are proven methods to source goods and make the framework agreements that offer the best prices.

The investment in technology will boost efficiency. The longer term reduction in costs will enable companies to direct their resources to more strategic initiatives.

1. Does on-line bidding give rise to any special

challenges or potential drawbacks for public sector procurers?