RESTRICTED
WORLD TRADE GPA/IC/W/36
21December 1995
ORGANIZATION(95-4113)
Original: English Interim Committee onGovernment Procurement
ELECTRONIC COMMERCE
Communication from theUnited States
Thefollowing communication fromthedelegation oftheUnited States wasdistributed atthe
meeting oftheInterim Committee on7December 1995.
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On-going technological advances inelectronic information exchange present wide-ranging
opportunitiesforprocurementauthoritiestousecomputerandtelecommunicationssystemsforpublicizing
procurement opportunities and,inthefuture, evenforming contracts. Thepotential economies and
efficiencies associated withautomation arenumerous andwell-known. Applying electronic commerce
totheprocurement process canresult in,among other things, increased competition, lower prices,
shortened acquisition timetables, reduced administrative costs, andimproved inventory control.
ArticleXXIV:8oftheAgreementonGovernmentProcurementrecognizesthatnewtechnologies
canincrease efficiency andcompetition ingovernment procurement andreflects thedesire ofthe
signatories totheAgreement onGovernment Procurement toensure thattheAgreement onGovernment
Procurement doesnotconstitute anunnecessary obstacle totechnical progress inacquisition methods.
Consequently, Article XXIV:8 callsforregular consultations intheCommittee regarding developments
intheuseofinformation technology ingovernment procurement and,where necessary, modifications
totheAgreement. Article XXIV:8 specifically mandates thatsuchconsultations shallaimtoensure
that:(1)theuseofinformation technology promotes open, non-discriminatory andefficient government
procurement through transparent procedures; (2)contracts covered under theAgreement areclearly
identified; and(3)allavailable information relating toaparticular contract canbeidentified.
Accordingly, theUnited States proposes thatthesignatories totheAgreement onGovernment
Procurement undertake areview oftheAgreement inlightofrecent technological advances inelectronic
commerce. Inaccordance withArticle XXIV:8, suchareview would beundertaken withtheobjective
ofidentifying means foraccommodating technological advances intheAgreement while ensuring and
enhancing non-discriminatory access tothegovernment procurement markets ofthesignatories ofthe
Agreement onGovernment Procurement.
Based uponapreliminary analysis bytheUnited States, three areas intheAgreement present
themselves asappropriate forcloser examination:
1. Selective tendering :Duetothefactthatutilizing electronic commerce mayresult ina
significantly greater volume ofbidssubmitted, procurement authorities mayrelymore heavily
onselective tendering procedures. Itmaybenecessary, therefore, toconsider ways toensure
thatforeign suppliers canparticipate onanequal footing withdomestic suppliers inselective
tendering procedures under Article XoftheAgreement onGovernment Procurement thatarise
from theuseofelectronic commerce.GPA/IC/W/36
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2. Areas ofambiguity :TheAgreement onGovernment Procurement contains various provisions
thatareambiguous regarding useofelectronic means ofpublication orsubmission ofbids.
These provisions should bereviewed andclarified astotreatment ofelectronic transmission.
Forexample, Article IXdoesnotexplicitly refer toelectronic publication andArticle XIII
doesnotrefertonewforms ofelectronic submission oftenders, which mayrequire special
safeguard provisions.
3. Deadlines :Deadlines under Article XIshould bereviewed inlightofthefactthatelectronic
publication canreduce theleadtimenecessary forinforming interested suppliers ofpotential
procurement opportunities andelectronic submission oftenders candecrease thetimerequired
bybidders forsubmitting responsive tenders.