SD13 - A Joint Study of Methods of Electronic Contracting and Procurement Under the Virginia Public Procurement Act


Executive Summary:
One of the most significant changes in the history of commerce is presently underway across the United States and, to a somewhat lesser degree, worldwide. Within both the private and public sector, the use of electronic technology is reshaping traditional business practices. This business revolution, most commonly referred to as electronic commerce (EC), is beginning to influence the very nature of how organizations interact with their customers. One specific area of EC where government is beginning to respond is in the use of electronic contracting (Ec) and electronic procurement (EP). At the federal, state and local level, such things as online bidding systems and vendor registration are being used to automate the procurement process.

As is typical with state and local governments across the nation, Virginia's implementation of EC is as varied as the many organizations that make up the Commonwealth. The Virginia Department of Transportation (VDOT) is presently converting to new enterprise software that will give them a significant Ec/EP capability. The University of Virginia (UVA) and Virginia Polytechnic Institute and State University (VPISU), along with the Department of General Services (DGS) and the Department of Motor Vehicles (DMV), have each taken steps to utilize electronic technology in the automation of the procurement process. Almost all state agencies, universities, and many local governments are using some form of procurement card (P-card) and electronic data interchange (EDI) as part of their routine purchasing and payment functions. There is no question that the Commonwealth has begun to utilize EC to improve operations and provide better service to customers, nor is there any question that the automation of the contracting and procurement process has begun in selected state organizations. The question that remains is what are the logical next steps to be taken by Virginia in order to gain full advantage from electronic contracting and procurement.

In addition to answering the specific questions raised in Senate Joint Resolution (SJR) Number 36, this report provides recommendations that suggest the next logical steps to be taken in order to make effective and efficient Ec/EP a widely implemented reality in the Commonwealth. A consensus, which has been derived from discussions with SJR 36 Study Team participants, is that the next steps taken should be broadly permissive in their intent and actively promote the expanded use of Ec/EP. It is also a consensus that, because of the diverse nature of state organizations, mandating Ec/EP through legislative or regulatory changes would not necessarily achieve the most beneficial or cost effective results. This consensus of Study Team participants provides an overarching framework for the final report and, most importantly, the specific recommendations presented in the report.