Electronic Procurement System in Latvia

1. Electronic Procurement System in Latvia March, 2009

2. Electronic procurement system like an eMarketplace www.eiepirkumi.gov.lv

3. The main benefits of eCatalogues Ensuring of the fair competition while reopening the competition in e-catalogues; Better prices for small purchases due to high turnover in the system; Reduction of the administrative burden through centralized procurement process made by highly qualified experts; Saving oftime and resources needed for organization of procurement procedure; e-Catalogue benefits Reduction of the amount of maverickbuying without agreements. Reduction of bureaucracy and the risk of corruption; Increasing of transparency; www.eiepirkumi.gov.lv

4. Legal basis - EU directive 2004/18/EC Open framework agreements: Many suppliers whom the contract was awarded through open procurement procedure, which is organized by the central procurement body; Fixed maximal prices; The possibility to reduce prices in order to make them more competitive while reopening of competitions; The possibility for predefined types of buyers to join the system while the agreement is valid. www.eiepirkumi.gov.lv

5. The ordering process is as easy as usage of the common internet shops (1) www.eiepirkumi.gov.lv

6. The ordering process is as easy as usage of the common internet shops (2) www.eiepirkumi.gov.lv

7. eProcurement system process tree • The types of users: • Buyer organization - buyer (■); - approver (■); - receiver; - administrator. • Supplier organization - supplier (■); - administrator. • System management (EPS users) www.eiepirkumi.gov.lv

8. The main steps of development • Upgrade of the system, smart tuning in framework agreements • Later on: • eAuction • eCompetition Now 11 catalogues in the Pilot system limitations: no obligation to use the system Pilot project expanded:system accessible for all state and municipal buyers Begin of Pilot project Users: Ministry of Finance and subordinated institutions, 1 catalogue. 2005 2006 2010 - 2011 2007 - 2009 www.eiepirkumi.gov.lv

9. The content of eCatalogues • Computer hardware;* • Presentation equipment; • Office equipment; • Photocopiers; * • Printing equipment accessories; * • Office paper; * • Stationery; • Office furniture; • Household goods; * • Medical remedies; * • Medical products. ______________ *catalogues, which totally produce more than 80% of turnover www.eiepirkumi.gov.lv

10. Turnover of the Electronic Procurement System from 2005 to 2008, LVL with VAT www.eiepirkumi.gov.lv

11. SME and eCatalogues The eCatalogue system has very intuitive interface and even one employee can successfully ensure all activities from both buyer and supplier side The rules of the open procurement procedure allow SME to operate in a few or even one region the territory of Latvia is split into 5 regions SME can submit their offer to tender with large-scale technical specification for a few or even one procurement lot only when medical remedies are purchased the supplier cansubmit their offer even for single medical item SME can choose the best time for doing transactions the e-catalogue can be accessed in 24x7 regime www.eiepirkumi.gov.lv

12. Benefits of the technologies chosen No new licence is needed for new users Data exchange by using XML and xCBL No costs per transaction Benefits of the technologies Possibility to integrate with many ERP Well known Microsoft products, which can be managed easily and cost-effectively Integration with eSignature platform WEB based user friendly interface www.eiepirkumi.gov.lv