SD12 - Study of Methods and Technologies Needed to Implement Competitive Procurement by Electronic Means


Executive Summary:
Senate Joint Resolution No. 403 (Appendix A) requested the Department of General Services (DGS) to study the methods and technologies needed to implement competitive procurement via electronic means, including electronic sealed bidding. In conducting this study, DGS was also requested to determine and recommend any changes to the provisions of the Code of Virginia that are necessary to accommodate electronic competitive procurement. The Code § 2.2-1111 gives DGS the sole authority to establish the policy and procedures implementing the Virginia Public Procurement Act (VPPA) (Appendix B).

To conduct this study, DGS reviewed the VPPA and implementing policy and regulations as affecting electronic procurement; the Commonwealth's electronic procurement solution (eVA) directed by Executive Order 65(00) and approved by the Secretary of Technology (Appendix C); other electronic solutions being implemented within the Commonwealth; electronic procurement initiatives by the Department of Defense, state and local governments. Further, DGS reviewed the Commonwealth's electronic procurement initiatives from the Code's intent that procurements, even though conducted electronically, would be conducted the "Virginia Way,".....fair, open, and honest with equal opportunity for all in compliance with Code § 2.2-4300 (Appendix D).

Findings from the review are summarized below:

• DGS is in the process of completing the implementation of eVA, the Commonwealth's total electronic procurement solution, including electronic sealed bidding. VDOT is currently conducting electronic sealed bidding over the internet for highway construction projects.

• There are no known Code of Virginia legal requirements that prevent implementing electronic procurement, including electronic sealed bidding.

• A policy change, outside of DGS authority is needed to remove a barrier to implementing electronic procurement. Administrative policy needs to reflect that records for audit and financial review can be stored in electronic format and that electronic signatures are acceptable.

• Technology solutions that permit full implementation of electronic procurement, including electronic competitive sealed bidding, compliance with security requirements and compliance with the Code of Virginia are being implemented or used in the Commonwealth.

• The e Government Office of the Secretary of Technology, working with a team of Commonwealth agencies and institutions, is developing interfaces or data exchange protocols between eVA and agency business management systems (ERPs).

• Procurement regulations require the use of eVA, the Commonwealth's electronic procurement solution, including electronic sealed bidding, unless an exception is granted by DGS.

Recommendations from the review are summarized below:

• Policies be revised to reflect that records for audit and financial review can be stored in electronic format and that electronic signatures are acceptable.