1 e-tendering Danish Defense Procurement Project: Repair and Maintenance of Buildings By Niels B. Sørensen, Projectmanager

2 Danish Defense Procurement Project Repair and maintenance of Buildings Office machines Office supplies Office furniture Computers Food Telephone services Small vehicles Consultants e

3 Hourly rates/ Ad Hoc Project based UrgentPlannedProjects Frame contracts Price list Types of work Method of procurement Focus area Suggested action: Contracts based on hourly rates Mini-tenders Combination of identical projects Tenders for broad regional frame contracts based on price lists on defined work combined with hourly rates. Considerations Repair and Maintenance of Buildings

4 Context Framework: Expenditure: CZK 1 – 1,4 Billion/year Suppliers: >500 Work categories: 14 Local Building Centers: 5 De-centralized and fragmented contracting Objectives: Savings: 15% = CZK 160 Million/year Centralized contracting Local planning and ordering <=100 suppliers 100% compliance with EU-regulations

5 Functional + regional 11 types of work and 15 regions 165 sub-contracts Primary, secondary and tertiary supplier on each sub-contract: Total 495 sub-contracts

6 Electronic tendering; why ETHICS? Numerous potential bidders Many regions Many types of work = many different specifications Requirement for detailed documentation throughout the bidding process automated selection process easy communication with the bidders as little administration as possible focus on the project – not the process proven off the shelf system tailored to the needs of the Danish Defense hot line service

7 Restricted procedure Pre-qualification: 23 question groups in 6 areas: General information Application for type of work and region. Economical information Technical abilities List of references Quality assurance Information on staff and their training Security Additional information

8 Pre-qualification 670 applied for access to the special homepage. 348 applied for pre-qualification 1,3 GB data received (7 – 10 meters of shelf) 210 pre-qualified 2 complaints were filed (and later withdrawn)

9 Tender (lowest price) Easy access to all bidding material (44 documents) Questionnaire with only 2 questions Bidding sheets for all types of work including general and specific requirements (27 documents) Handling of Q and A (17 documents) 800 MB of data received (4 – 6 meters of shelf)

10 Outcome 155 suppliers made bids for 495 sub-contracts. 115 awards for 409 sub-contracts 98% coverage across sub-contracts and economy Savings: ?