Discussion

After Mr. Shiojiri opened the floor to discussion, Mr. Enomoto asked a question to Mr. Park, about what cost reductions were possible and how cost reduction effects could be calculated.

Mr. Park responded by noting that it was very difficult to calculate the savings and cost reductions to both government and suppliers achieved through e-procurement. He added that a break down of cost savings on the government and supplier side could be provided and he would pass those on to Mr. Enomoto.

Mr. Sogo noted that in Japan, in the case of public works procurement, it was not always the case that "cheapest was best", for example, when people's lives were at stake, design and construction were critical. He asked if any countries had a system that did not necessarily pursue only the cheapest price, adding that the CALS/EC system was different system in Japan.

Dr. Pukall noted that there were also different systems in Germany for procurement, but consideration was under way to make procurement models universal. She added that under German law, the government is obliged to award the contract to the most economic bid, which would not necessarily be the cheapest bid.

Mr. Park responded that in Korea, too, different types of bidding are adopted. In the case of goods and small items, he noted that the lowest bid wins, but that in larger projects, other economic aspects are taken into consideration, in a similar way to Germany. Mr. Park noted that in the case of construction contracts, the financial ability of companies are analyzed in addition to other factors, and target prices are often set as a guideline.

Mr. Hughes asked if the e-procurement initiative in Korea applied only to the 25% of procurement undertaken by the PPS. Mr. Park responded that the system used by PPS can be applied to the whole procurement system and the goal is to try and connect all procurement entities and create a portal service.

Mr. Sogo noted that in Japanese public works, in order to minimize the lifecycle costs, the reduction of data costs is a significant issue and that in the future it was hoped that 3D data could be used. Mr. Hughes noted that he did not know the current status of 3D data in Ireland but would forward any information to the secretariat.

Dr. Granholm noted that Mr. Hughes had said that Ireland now had the capability to place all procurement under "one roof," and suggested that Austria could find a similar method. Mr. Hughes noted that, in Ireland, procurement is centrally decided to ensure transparency and then implementation is given to local government.

Mr. Raber responded that, in Austria, it was still not clear what levels of cooperation could be achieved among the different levels of government, but that work would begin to bring procurement under roof during the course of 2001. He stressed the fact that procurement in Austria was still lacking in transparency.