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The Electronic System for Public Acquisitions - E-licitatie
Institution: The Ministry for Communication and Information Technology (MCIT)
Theme: Knowledge Management in Government
Implementation Date: Mar 01, 2002
Summary: E-licitatie is a nation-wide governmental web portal for procurement in Romania where government clients and private sector vendors can interact after being authenticated into the system.

The system covers a broad range of procurement from the purchase of office supplies for some schools to services such as construction contracts.

The system works on a reverse auction basis. The contracting authority from the government side issues a public notification through the system with terms of reference for the purchases to be made, including a clear description of the goods required.

There is a time-bound automated bidding system, and the choice of winner is based on the lowest price bid to supply the required goods. The system provides equal chances and a transparent environment for all players.

As well as automating the procurement auctions, E-licitatie can also provide information about:
  • How public funds are being spent by the participant institutions;
  • The rules and procedures used in procurement;
  • The participants (both contracting authorities and bidding companies);
  • The winners of the contracts;
  • The interface offers advanced search options for quick retrieval of specific information.
Impact: The project testifies to the cost saving potential of online public purchases. At present (2005) the system is assisting some 1,000 public authorities and more than 3,000 companies, resulting in over €150 million in direct price savings – a staggering 24.5% reduction in cost.

Cost cuts go hand in hand with improved services. The system has put in place more efficient and transparent processes of public acquisitions by providing a single point of access, through which all relevant information can be obtained. The paperless environment has also significantly simplified participation.

From a technical perspective, the project has proved to be a driving factor for technological development and increased competition in public sector procurement.

This new system creates the premises for diminished corruption, reduced bureaucracy and enhanced transparency, thereby contributing to the effort of building efficient and accountable public sector institutions capable of sustaining long-term development.

The benefits of the system in this respect are widely recognized by its users. By procuring electronically, the Romanian government is also reducing costs for all parties involved – including the service providers – opening up the possibility that the system can act as a business catalyst and growth factor for small and medium-sized enterprises (SMEs).

Since its launching in 2002 until the end of H1 2005, e-licitatie performed 471,553 electronic transactions, and 4,364 digital certificates were issued through this system. During this period, the users saved 178 million euro.
Source: Institute for Development Policy and Management, University of Manchester - Europa (European Commiss
Project Home URL: http://www.e-licitatie.ro

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