We sure didn’t see that one coming: The European Commission decided that all public sector buyers should be required to carry out procurement electronically by 2016.
By proposing this deadline for mandatory e-procurement, a massive €100 billion should be saved annually across the EU from the even more staggering €2 trillion procurement spend across the EU.
Multiple deadlines for mandatory e-procurement in the EU
In fact the European Commission proposes several deadlines for mandatory e-procurement:
- Central government bodies have to achieve all this by mid-2014.
- The wider public sector have to achieve the first two elements by the same date, but will be given until mid-2016 to meet the communication aspect.
- The Commission itself wants to move to full e-procurement by mid-2015.
This will include posting all contract opportunities online, making all tender documents available, the electronic submission of bids and making all communication digital.
Response from the EC Internal Market commissioner
EC internal market commissioner Michel Barnier said in a statement:
“It’s time to act. 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 and deliver better quality and lower prices. The sooner the transition is initiated, the sooner we will reap the benefits offered by e-procurement”
Did you know?
In 2005 (seven years ago), the Commission attempted to set out targets for e-procurement implementation in the public sector previously, but these have been missed. It proposed in 2005 to move all procurement online by 2010. In reality, e-procurement is used in just 5 to 10 per cent of procurement processes.
With manadatory E-Gov requirements for EU just steps up excitement and potential savings. E-invoicing and E-procurement will be brought into a new light of discovery!