E-Procurement: State Government Learns from the Private Sector

Abstract

This essay is a careful examination of the effect of leveraging and integrating the power of the Internet as a tool in the total procurement process and its relationship to the supply and demand for goods and services. This work will be of interest to both informed and uninformed readers who wish to broaden their understanding and the effect of e-Procurement within the process of government purchasing. The chapter begins with a discussion of legacy systems and past practice purchasing methods. This is followed by sections on public sector versus private sector business practices, business models for e-Procurement, culture changes, legislative changes allowing for adoption of e-Procurement and advisory committees. There are also sections addressing the benefits of e-Procurement versus paper-based procurement, vendor retention and training. A case study of eMaryland Marketplace, the State of Maryland’s e-Procurement Portal, is discussed with particular attention given to theoretical use versus “real life” experience associated with implementing an e-Procurement system. Statistics are cited comparing savings achieved in user efficiency and direct cost between e-Procurement versus “paper” purchasing methods. A discussion is presented outlining added modules to the initial eMaryland Marketplace program. This discussion will include the future implementation of regular and reverse-auctions conducted online through the eMaryland Marketplace portal. In addition, a discussion ensues on how the capital project solicitations were brought onto eMaryland Marketplace. These include all construction, architectural, and engineering contracts let through the eMaryland Marketplace. Finally, recommendations are made for other state or local jurisdictions that are considering implementation of e-Procurement.