A Framework of Electronic Tendering For Government Procurement: A Lesson Learned in Taiwan

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Automation in Construction 11 (2002) 731 – 742

www.elsevier.com/locate/autcon

A framework of electronic tendering for government procurement:


a lesson learned in Taiwan
T.S. Liao, M.T. Wang, H.P. Tserng*
Department of Civil Engineering, National Taiwan University, Taipei 10617, Taiwan

Accepted 20 February 2002

Abstract

To render government procurement efficient, transparent, nondiscriminating, and accountable, an electronic government
procurement system is required. Accordingly, Taiwan Government Procurement Law (TGPL) states that suppliers may employ
electronic devices to forward a tender. This investigation demonstrates how the electronic government procurement system
functions and reengineers internal procurement processes, which in turn benefits both government bodies and venders. The
system features explored herein include posting/receiving bids via the Internet, vender registration, certificate authorization,
contract development tools, bid/Request For Proposal (RFP) development, online bidding, and online payment, all of which can
be integrated easily within most existing information infrastructures. D 2002 Elsevier Science B.V. All rights reserved.

Keywords: Certification authority; Payment gateway; Government electronic procurement system; Public key infrastructure

1. Introduction larly, obtaining and submitting tenders are also costly


for suppliers. The Electronic Tender Obtaining and
Taiwan spends more than US$12 billion on public Submitting System simplifies original administration
works annually. Only 2% of public work tenders are procedures and, therefore, the government and suppli-
valued at more than US$1.7 million, which accounts ers can save US$14 and US$26 million, respectively,
for 60% of the total public works investment and each year. To accelerate the procurement process,
often becomes the target of bid collusion. This not reduce administration cost, and incorporate the use of
only damages the government’s image but also costs the Internet, this paper reviews electronic tendering of
taxpayers US$0.36 billion in annual losses. government procurement. An electronic system is
Preparing tendering documentation and conducting introduced to obtain, submit, and open tenders. Nota-
tender obtaining processes requires much labor. Simi- bly, the system promotes government procurement
efficiency as well as prevents bid collusion.
The electronic government procurement system can
*
be combined with electronic commerce and prevent
Corresponding author. Tel.: +886-2-2364-4154; fax: +886-2- bid collusion effectively. With our system, venders can
2366-1640.
E-mail addresses: tsliao@moea.gov.tw (T.S. Liao), download tender documents through the Internet and
mtwang@ce.ntu.edu.tw (M.T. Wang), hptserng@ce.ntu.edu.tw hence eliminate the paperwork and inconvenience of
(H.P. Tserng). conventional procurement processes. Furthermore,

0926-5805/02/$ - see front matter D 2002 Elsevier Science B.V. All rights reserved.
PII: S 0 9 2 6 - 5 8 0 5 ( 0 2 ) 0 0 0 1 3 - 4
732 T.S. Liao et al. / Automation in Construction 11 (2002) 731–742

tender authorities can invest less labor and resources tender submitting subsystem, and tender opening sub-
into tender document preparation. Bid collusion, which system.
typically occurs in conventional procurement pro- The electronic procurement system provides a fair
cesses, can also be suppressed. It is beneficial to both and open environment to reduce the overall workload.
the government as well as law-abiding venders. Tender authorities can upload tender documents to the
Fig. 1 illustrates the electronic procurement sys- networking center billboard, which enables venders to
tem. In addition to the three major participants: the browse current government cases. All procurement
networking center, the government, and venders. Our processes can be accomplished via the Internet.
system also incorporates other members including the Through public key infrastructure (PKI) and security
certification authority (comprised of the government module protection, venders can complete the tender
and government procurement system CAs) and the obtaining and submitting processes anonymously and,
payment gateway. The former is the third party for therefore, prevent criminal interference. The security
tender authority and vender identity verification. The infrastructure of the system is based on procurement
latter serves as the means for receiving and refunding laws as well as the requirements of government author-
application fees as well as bidding deposits. Notably, ities. Vender identity is protected during the tender
the procurement process can be divided into tender submitting process. Authority and responsibility of
documentation preparation subsystem, document government agencies are therefore defined clearly.
uploading subsystem, tender obtaining subsystem, Furthermore, the system provides a paperless, environ-

Fig. 1. Framework of the electronic procurement system.


T.S. Liao et al. / Automation in Construction 11 (2002) 731–742 733

mentally sound process. Descriptions regarding sys- fore verify their identity. Within an electronic
tem design, possible problems, and applicable counter procurement process, government authorities and ten-
acts for the transition from conventional to electronic ders can employ the third party CA to verify identi-
procurement process are given below as tender invita- fications.
tion process, tender obtaining process, tender submit- Notably, CA certification applications must be
ting process, and tender opening process, respectively. submitted through certification organizations (net-
working centers, venders, and government authori-
ties). Issued electronic certification is the identification
2. Tender invitation process (ID). It is stored in unduplicated IC chips, which are
more reliable than ID cards. Chunghwa Telecom has
During the transition from a conventional procure- developed complete CA techniques and the govern-
ment process to an electronic one, possible limitations ment certification administration center (GCA) is also
and preventive measures are listed below. in operation. These two organizations provide suffi-
cient support for our electronic procurement system.
2.1. Immunity of electronic files of tender document Also, the system described herein employs the GCA
toward computer virus developed and managed by Chunghwa Telecom. Prior
to uploading documents, authorities should request
Generally, tender documents prepared by govern- authorization for identity verification. Subsequently,
ment authorities are in text or image files. The text or the networking center receives the uploading request
image files will be changed to electronic forms, which with the authorization from the government authority,
tend to be infected by computer viruses and therefore which is identified via the GCA center. Similarly,
should be scanned prior to opening. If the networking vender identification can be ascertained through the
center is really affected by computer viruses, server CA devoted to electronic procurement exclusively.
attendants must perform emergent measures such as
canceling the case, interrupting venders from down- 2.4. Paper-based documents
loading files, and informing government authorities to
restart the case. The management of paper-based documents, such
as product samples and confidential information,
2.2. Undeniableness and complicity of electronic presents an obstacle. Thus, two approaches were
documents devised to resolve this problem. In addition to a
written description, paper-based information can be
Conventionally, tendering documents are sealed displayed via multimedia, such as high-resolution
with government stamps, which can be identified images transformed from pictures, as well as video
easily. However, to prevent altering on electronic and audio files prepared by digital cameras. Other-
documents, coding techniques and public key infra- wise, conventional approaches such as preparing a
structure are required. Also, by enforcing electronic showroom for interested venders to examine can be
signature law, public confidence as well as the rights established. In the next subsequent stage, this system
of all parties are assured via the ability of undeni- is coordinated with post office or document preparing
ableness of electronic documents. In fact, electronic center to relay paper-based documents.
signature laws can identify document senders and
determine their legitimacy. That is, when documents 2.5. Document digitalization [10]
are received, the sender’s identity and complicity of
the document can be verified. Generally, tender documents can be categorized
into two categories: text and figures. Conventional
2.3. Identity certification text documents include deed documents, spreadsheets,
and lists. Typically, government procurement systems
Conventionally, tenders must visit the govern- provide sample tender documents in DOC and TXT
ment authorities to obtain tender documents and there- files for downloading, which can be transformed into
734 T.S. Liao et al. / Automation in Construction 11 (2002) 731–742

alternate formats. To generate text documents, editing 2.7. Network bandwidth


tools, such as MS Word, Word Perfect, and Excel can
be employed. Furthermore, figures such as pictures, Construction cases may contain hundreds or thou-
drafts, and diagrams (described in Section 2.10) are sands of figures, which may be sizeable. Time
often required. Text documents, including contracts, required for uploading depends on Internet stability
bid regulations, and declaration forms can be trans- as well as connection speed. Hence, to facilitate the
formed easily into electronic formats. These digital- use of the electronic procurement system, Chunghwa
ized text documents can be applied to similar jobs Telecom, for example, upgraded their networking
without extensive modification. infrastructures with T1 or ISDN connections to reduce
uploading time. In the future, broadband ISP services
2.6. Electronic file formats [2,3] will be available from various providers and resolve
the bandwidth problem.
Basically, this system should be invariant to file
formats. Users can select the sort of editing tool to use 2.8. Case progress updates for government authorities
in preparing and browsing tender documents. MS
Word, MS Excel, and Lotus Notes are examples of Eventually, this system will enable a government
common editing tools. authority that oversees the case to request case pro-

Fig. 2. Flow chart of obtaining of tender documentation.


T.S. Liao et al. / Automation in Construction 11 (2002) 731–742 735

gress information, such as the number of tender images should be stored in compressed formats. Digital-
browses, awards, and submissions. ized images can be created, transformed, and printed by
other institutions. Procurement authorities can acquire
2.9. System requirements digitalized images via the following four strategies.
(1) Images created and transformed by procure-
To execute the proposed system, a 486 or higher ment authorities. Procurement authorities can design
PC with minimum 32 MB RAM, floppy disk, and and produce digitalized images or create drafts first,
online equipment, such as modem and Ethernet card then transform them into digitalized images such as
are recommended. Windows 98/NT operating systems Tiff G4 format files via image transform software.
are also recommended. Furthermore, this system (2) Drafts created and transformed by an outside
requires a web browser, such as Netscape Communi- institution. If procurement authorities do not possess
cator 4.X, Internet Explorer 4.0, or later versions. image transform software, another institution can
transform drafts and figures into Tiff G4 format.
2.10. Transformation of image formats [2] (3) Drafts and transformed images prepared by
consultant companies. Procurement authorities can
Electronic procurements were divided into three hire consultant companies to design construction
groups, which are property, service, and construction drafts. If the consultant company possesses or has
works. The construction works may contain a large access to image-transforming services, Tiff G4 format
number of drafts. In order to minimize uploading time, images can be forwarded to procurement authorities.

Fig. 3. Flow chart of tendering.


736 T.S. Liao et al. / Automation in Construction 11 (2002) 731–742

(4) Consultants design drafts without image trans- Internet. Anonymity is secured and hence reduces the
formation. If the consultant companies cannot provide possibility of bid collusion, which is notably the
transformation service, the procurement authority can primary purpose of this system. However, to block
convert the drafts and non-Tiff G4 format images. hackers, documents transferred on this system must be
coded due to the openness of the Internet. Additionally,
as electronic signatures aid in source verification and
3. Tender obtaining process determine document reliability, each tender document
must bear the private key of the managing institution.
Rather than conventional approaches, such as Disputes are still resolved in the conventional fash-
obtaining tenders in person or through the mail, ion. Restated, if questions or disputes occur, corre-
tenders can be obtained electronically via the Internet. sponding paper documentation is required. Fig. 2
Venders can also submit deposit and download tender illustrates the flow chart of the tender obtaining process.
documents online. PCs, Internet equipment, and cor-
responding software are required equipment.
The traffic problems exist throughout the Internet. 4. Tender submittal process
One significant feature of the system is its transfer
speed. That is, to increase downloading speed. It is Rather than the postal system, electronic tender
recommended that tender authorities prepare docu- submitting process uses the Internet to deliver bidding
ments in a concise format, such as Tiff G4 image materials. Therefore, transmission speed is critical.
format. Also, faster Internet connections, such as Compared to the tender obtaining process, bidding
ISDN and ADSL are recommended. Moreover, the documents are submitted primarily through uploading.
user’s system should support downloading in seg-
ments, which assists venders to download parts of
the documents when the traffic is busy and download Table 1
Limitations and solutions of electronic tender system
the remainder when the traffic is low.
Items Limitations Solutions
Also, conventional paper documents should be
transformed into electronic formats. It is recommended (1) undeniable and using the signature private
confidentiality of key of tenders
that tender authorities employ commonly used editing
tender documents
tools, such as MS Office, to enable ready opening and (2) confidentiality of private key for tender opening
reading without requiring additional software. tender documents is available only when opening
Obtaining tender documents electronically reduces prior to opening commences
printing costs. Furthermore, once documents are (3) security of tender opening key is shared
preserving tender between the host and
uploaded, the tender obtaining process is complete
opening key the supervisor
and venders only need to download documents when (4) networking documents can be downloaded
needed. The cost of producing documents for tender bandwidth in segments with faster
authorities can be included into designing fees. connections, such as ADSL
An HTML index, which is included in download- (5) fairness of opening private key is held separately to
tender document ensure fairness
able documents, is designed to facilitate electronic
(6) verification tender documents can be
procurement document browsing. Notably, this file lists of tender reviewed through monitors
the corresponding document’s filename and includes documents or printed in paper format
hyperlinks to select files. Via our system, venders can (7) bidding deposit enable electronic deposits
browse the contents of tender documents quickly, verification
(8) verifying tender the system stores qualification,
which is a convenient feature of electronic documents.
documents specification, and bid information
Anonymity is the most prominent feature of elec- in multistage separately; information can be
tronic tenders. Conventionally, venders had to obtain decoded in multistage depending
tender documents in person, which may result in bid on case requirement
collusion. Alternately, via the electronic process, vend- (9) updating tender display online
progress
ers can execute all required processes through the
T.S. Liao et al. / Automation in Construction 11 (2002) 731–742 737

The system also permits segmented file uploading. private key, which is employed to sign tender docu-
Similarly, bidding documents must be in an electronic ments. Owing to its unduplicated property, the private
format. Some specific documents, such as business key is more secure than traditional stamps. Coding
registration forms and tax receipts, can be scanned techniques are applied to achieve security. Triple DES
initially into an electronic format and stored for future Key, which is RSA coded with government authorities
use [4,5]. Furthermore, Government Electric Procure- public key, must code all documents. Therefore, only
ment System (GEPS) CA can help recognize vender the owner of the very private key can access file
qualification. These certificates are equivalent to qual- contents. Moreover, electronic bidding documents
ification documents. Thus, vender qualification is forwarded to the networking center contain no vender
examined upon GEPS certificate application. information. Prior to tender opening, bidders are
Bidding deposit submission is another significant anonymous and venders’ rights are secure.
step in tender submitting process. Vender can go to the One limitation, which is common in both conven-
banks providing this service to get an electronic file tional and electronic procurement processes, is deter-
confirming deposit submission. Notably, this file must mining whether or not the tender document meets
be submitted along with other bidding documents. tender authority requirements. That is, tender author-
Electronic procurement documents use electronic ities require venders to fill empty columns but not to
signatures to represent vender acknowledgement. This alter conditions and regulations text. Unless the docu-
process is accomplished via GEPS CA. Upon certifi- ment bears official stamps, venders within the tradi-
cate receipt, venders are granted a corresponding tional process can duplicate files and alter its contents.

Fig. 4. Flow chart of opening of tenders.


738 T.S. Liao et al. / Automation in Construction 11 (2002) 731–742

In electronic processing, documents may be changed in ments. When opening tender, tender authorities must
editing process no matter if the vender is doing that on download related details regarding deposit certificates
purpose or not. This problem remains unsolved. Thus, from a networking center. Tender authorities can then
the only preventative measure is to examine documents compare the serial numbers of the deposit certificate
manually when opening tenders. Since the networking issued by banks and the one included in the qualifi-
center retains the original documents as well as elec- cation documents. Also, the electronic signature of the
tronic signatures that were uploaded by tender author- deposit certificate will be examined to ensure its
ities, the networking center can examine and compare validity. Fig. 4 displays the flow chart for the tender
files as the third party if disputes arise. Fig. 3 presents opening process.
the flow chart of tender submitting process.

6. Comparison of electronic procurement systems


5. Tender opening process with other countries

Table 1 lists limitations and corresponding solu- This research collects the information about func-
tions that may occur during the transition from con- tion charts of electronic procurement systems used in
ventional to electronic tender opening. The system the United States, Canada, Japan, Singapore, Aus-
downloads bidding documents both completely and tralia, and EC as tabulated in Table 2. According to
partially. Tender authorities can choose their prefer- the table, most systems are used on providing procure-
ence according to their connection speed and require- ment information, receiving bidding information and
ments. When tenders are opened, both tender host and venders’ catalogs, and using purchase cards on pro-
supervisor must be presented to engage the process. curement of small items. The electronic procurement
Therefore, in our system, four parties share the private system used in the R.O.C. has similar features like
key. Any two of the four parts can reconstruct the other countries such as electronic catalogs, price
original private key. The tender opening host, super- inquiring/submitting system, and the government pro-
visor, and two correspondents hold these four key curement information publishing system. In addition,
parts. When bidding documents are opened, tender this system further enhances its functionality by con-
authorities will request the bid-opening keys from the necting the procurement authorities, GCA, financial
networking center. Once the networking center institutions, payment interface, and venders through
receives the request, it will determine whether it is the network service center to process jobs online such
due. If overdue, the networking center will refuse to as bidding receiving/submitting, deposit withholding,
deliver bid-opening keys from venders; otherwise, and bidding opening. The whole governmental pro-
files containing venders’ bid-opening keys will be curement process can be totally digitalized into a
forwarded to tender authorities via e-mail. Tender paperless environment regardless of procurement
authorities can employ their key to open these files budget amount. It is not only easy for use and main-
and use venders’ keys to disclose bidding information. tenance, but is also expendable with a high efficiency.
Based on various tender opening procedures, bids can It secures information with multiple protecting meas-
be opened immediately or in several stages. Hence, ures and stops criminal actions such as bid collusion.
the system is designed to open tender qualification, Since the establishment of the electronic procure-
specification, and bids individually. Depending on the ment system on January 1, 2001, the subsystem of
specifications of each case, the tender authority can obtaining tender documentations has been operated.
therefore disclose this information in whole or in part. Until September 28, 2001, 18,015 tenders have been
Once the bidding documents are decoded, bidding registered to the network service center from govern-
information can be reviewed via browsers. The system ment entities nationwide and 58,558 bidding docu-
enables document viewing and printing. ments have been received via Internet. Furthermore,
Prior to submitting bidding documents, venders our government requires that the rates of electronic
must apply for the electronic deposit certificate from bidding receiving/submitting cases should meet 15%
banks and enclose this file in the qualification docu- and 5% increases before the end of 2002 for the central
T.S. Liao et al. / Automation in Construction 11 (2002) 731–742 739

Table 2
Comparison of governmental electronic procurement system
Country Governmental electronic Functions
procurement system
United States FACNET (1) Announcing governmental procurement opportunities
FACNET applies to open procurement (2) Providing related governmental procurement information
processes if simplified procurement (3) Accepting bidding electronically
process requirement is met [1] (4) Processing online payment toward venders
(5) Collecting related governmental procurement information
Electronic catalogue [4] (1) Contracts with pre-established business arrangements with industry
(2) A way to identify and order goods and services
(3) Sufficient and timely information to compare the items offered by
performance, price, and delivery
(4) Mechanisms for vender payment, including, where possible,
government purchase cards
Canada MERX (1) With built-in procurement matching system, venders can be
MERX applies to open procurement informed immediately with appropriate procurement cases and receiving
processes and some limited procurement related information
processes [8] (2) Accepting bidding electronically
(3) Providing documents to venders, confirming orders online, and
inquiring buyers’ ordering history
Australia Transigo (1) Publishing federal government procurement gazette and process
electronically
Transigo applies to open and limited (2) Inquiring related information about federal government procurements
procurement processes [4,7] (3) Accepting online orders
Singapore GTS GTS: supply government procurement bidding invitation, publishing
Venders are not required to use GTS and updated procurement news, bidder name, and bidding submission,
GTS is used for open procurement only as well as winning bidder and price (in 1998, GTS stopped operation
because Teleview system was no longer in use)
GITIS GITIS: providing online procurement information, bidding processing,
GITIS applies to all new procurement government procurement handbook, and application form government
information accessing and bidding procurement vender registration
submitting services, including open,
selected, and limited procurement
processes [6]
MIPS MIPS: the defense department online procurement system provides
MIPS applies to defense related open, browsing, price inquiring, bidding submission, and receives buying
selected, and limited procurement orders according to encoded defense department public key with
processes [6] digital certificate identity confirmation
Japan JETRO Supplying information such as government procurement announcement,
JETRO applies to open and limited item category, construction category, procurement institution and
procurement processes [4] location, announcement publication date, application deadline, bidding
winner announcement dates, and procurement announcement dates
Euro SIMAP SIMAP: providing government procurement related information and
SIMAP applies to open and limited new procurement cases
procurement processes
TED database TED database: providing database of electronic bidding news,
TED database also applies to open and digitalized procurement announcement, procurement information,
limited procurement processes [3,9,11] winning bidder information. It contains all procurement data files
since 1986 and is updated daily during weekdays
R.O.C. Electronic tendering system Electronic tendering system: digitalizing procurement and bidding
(Taiwan) This system applies to open, submission documents, which can be retrieved and submitted online
selective, and limited procurement
(continued on next page)
740 T.S. Liao et al. / Automation in Construction 11 (2002) 731–742

Table 2 (continued)
Country Governmental electronic Functions
procurement system
Electronic catalogue system Electronic catalog system:
applies to equipment procurements (1) Electronic catalog information about product descriptions,
below budget NT$1,000,000 specifications, prices, and features. It not only saves paper cost but
can also be updated quickly. Furthermore, products can be categorized
for quicker inquiring
(2) Electronic price inquiring/submitting system publishes
governmental equipment procurements, which has budget amount
below NT$1,000,000
(3) Venders can submit price directly through the Internet to the
procurement entity
Government procurement Government procurement information system: providing information
information system about government procurement announcement, classification,
this system applies to open, procurement entity and address, deadline for requesting tender
selected, and limited procurement documentation and bidding, means of requesting tender documentation,
vender requirements, contract deadline, budgets,
winning bid price, winning venders, and debarred venders

and the local governments, respectively. We believe logues, and purchasing cards of others countries, the
that the Electric Signature Act will be enacted in the electronic procurement system presented here has
near future and therefore put the bidding submitting/ several advantages as follows [4,5]:
opening system into action.
Contents about the system’s technical issues will (1) it establishes an open, fair, transparent, and
be shown in Fig. 5. efficient environment for government procurement;
(2) it renders the procurement process more open
and transparent, and thus reduces the possibility of
7. Lesson learned in Taiwan bid collusion;
(3) it simplifies the procurement process, reduces
The number of Internet users in Taiwan is more than paperwork, and enhances procurement efficiency;
7 million, which is about 32% of the total population. (4) it facilitates business opportunities and encour-
Taiwan is going to join the WTO as a member and will ages suppliers’ participation in government pro-
sign GPA to build a non-boundary purchasing environ- curement;
ment among other countries. For the purpose of admin- (5) it encourages venders’ participation and
istration innovation, the Taiwan government is reduces transaction costs;
computerizing the purchasing system of the public (6) it enhances the application of electronic
construction through the progress of Information Tech- techniques.
nology in order to be more efficient and open. The
problems that the system might be facing and the The system needs the followings to become more
solutions to the problems have been stated in Section effective.
2. The electronic procurement system is basically a (a) Legislation of Electric Signature Act: this Act
digitalized format of the conventional procurement should be done as soon as possible to solve legal
process and works in a more open and more efficient issues about electronic signatures and procurement
fashion. paper documents.
The range of the system will be expanded. The (b) Establishment of online certificate authorization
subsystem of tendering and opening of tenders will system: there are many CAs established in Taiwan.
be in use, soon after the approval of Electronic Sig- However, Root CA is needed to integrate existing
nature Act from the Legislation Yuan. By comparing CAs. For governmental procurement, the Chunghwa
the electronic information system, electronic cata- Telecom CA (GCA) is used temporarily.
T.S. Liao et al. / Automation in Construction 11 (2002) 731–742 741

Fig. 5. System framework of software environment.

(c) Network environment requires further upgrade: the system proposed herein. Firstly, the electronic
a high-speed network is critical in avoiding network procurement process must resemble conventional pro-
jams and has not been fully constructed in Taiwan. curement processes. Secondly, complete measures
(d) More training is needed: the security measures of should be developed to digitalize documents. Thirdly,
this system are pretty complete. However, it depends on security control measures must adhere to government
how well the users (including government authorities procurement regulations. Fourthly, measures must
and venders) can accept and use information technol- ensure application fee and deposit submitting process
ogy to fully utilize this system. Therefore, it is impor- security. However, the most significant step is con-
tant to take more training and marketing measures. stant avocation and training to guide procurement
associates to operate the electronic system. In this
study, the system’s operation was described compre-
8. Conclusions hensively. Solutions for relevant problems to execute
electronic procurement were presented, and the intro-
Several conditions are required to ensure the suc- duction of electronic commerce was adopted. In
cess of the tender obtaining and submittal processes of addition, this system integrates the structure of various
742 T.S. Liao et al. / Automation in Construction 11 (2002) 731–742

electronic commerce services, including tender invita- Electric System of Government Procurement, Public Construc-
tion document preparation, uploading, tender obtain- tion Commission (Taiwan, R.O.C., 1998).
[5] J. Taylor, H. Bjornsson, Construction supply chain improve-
ing, submitting, and opening subsystems. Owing to ments through Internet pooled procurement, Proc. 7th Ann.
this system, procurement efficiency is increased and Conf. Int’l. Group for Lean Constr., University of California,
bid collusion possibility is reduced. Thus, vender Berkeley (CA, USA, 26 – 28 July 1999).
participation is encouraged and nation competitive [6] National Computer Systems, GITIS, The Government Internet
Information System, http//160.96.179.95/gitis/regime html (18
ability is increased. In the future, business-to-business
Dec. 2000).
electronic commerce applications can be developed [7] New South Wales Government, Australia. NSW Government
furthermore. Electronic Procurement Implementation Strategy, http://www.
cpsc.nsw.gov.au/e-procurement/framework.htm, (21 Dec.
2001).
[8] Public Works and Government Services Canada, MERX: Can-
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com/Services/AboutMERX/English/WM/WM _ Default.asp,
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append _ n.htm (2 Oct. 2001). supply.com (12 Oct. 2001).
[2] eBid Systems, Internet Bid Management Software for Owners, [10] W. Brenner, V. Hamm, Information technology for purchasing
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