Electronic contracting system (ECS)

• Information system of public administration
• Tool for fully automated placement of orders
• Central trading place obligatory for public procurement and voluntary for anyone, who registers for free

• Consists of sub-systems:

  • electronic market place (e-market)
  • dynamic procurement system
  • electronic support of processes of information provision, communication, explanation electronic delivery

• Functional features of electronic market place are available in the following scope:

  • registrations
  • order placement process
  • offer placement
  • creation of structured description of order subject in form layout
  • creation of placements
  • registers and statistics of completed trades
  • automated notification of suppliers in the form of e-mail invitation to join open bidding for selected subjects of contracts
• Functionality of dynamic procurement system and electronic support of processes to be available during the current year

Trading on e-market:

• Placement of orders on electronic market place can be done by:

  • selecting from catalogue offer (electronic catalogue),
  • defining placement electronically
• In both cases a 72 hour period (in case of complicated trade to be appropriately prolonged) of anonymous bidding takes place; competition of suppliers resulting in reduction of price of contract subject.
• Evaluation of bidding followed by generation of business relationship through contract agreement with the winner of the bidding is performed by the information system, without the possibility of personal interaction.
• The participants of the trade are publically disclosed after the expiration of bidding period following evaluation of the bidding, when the results are available and contract agreement is generated, which is automatically created from the placement information, winning bid and general contract terms specified in the business terms of electronic market place.
• The contract agreement is published in central register of contracts; the course of trading is recorded, archived and publically disclosed in full extent within the period of five years.

Liable parties of e-market:

Contracting authority as stipulated by § 7 and person as stipulated by § 8 of the Act on public procurement.

§ 7
(1) For the purpose of this Act, “contracting authority” is
a) the Slovak Republic represented by its authorities,
b) a municipality,
c) a higher regional unit,
d) a legal entity, satisfying requirements pursuant to paragraph 2,
e) an association of legal entities, whose at least one member is a contracting authority referred to letters a) to d),

(2) Legal entity pursuant to paragraph 1, letter d) is a person incorporated or established for special purpose of fulfilment of needs of general interest, which do not have industrial or commercial character, and
a) fully or for the most part funded by a contracting authority pursuant to paragraph 1 letters a) to d),
b) controlled by contracting authority pursuant to paragraph 1 letters a) to d) or
c) where a contracting authority pursuant to paragraph 1 letters a) to d) appoints or elects more than half of the members of its executing organ or supervisory organ.

§ 8
(1) Where a contracting authority provides a person that is neither a contracting authority, nor contracting entity, over 50 % of funds for the supply of products, execution of building works and provision of services, that person shall be obliged to comply with
a) the same rules as the contracting authority, if the estimated contract value equals to or exceeds the financial limit pursuant to Article 5 paragraph 2 set out for such contracting authority,
b) Article 108 paragraph 1 subparagraph a) or subparagraph b), if the estimated contract value is lower than the financial limit according to subparagraph a) and, at the same time, equals to or exceeds
1. EUR 40 000, if it is a supply contract, except for supply of foods, and a service contract, except for the service listed in Annex 1,
2. EUR 80 000, if it is a contract for supply of products that are foods,
3. EUR 140 000, if it is a building works contract,
4. EUR 400 000, if it is a contract for provision of the service listed in Annex 1,
c) Article 117 paragraphs 1, 3 and 4, if the estimated contract value is lower than the financial limit set out in subparagraph b).
(2) Where a contracting authority provides a person that is neither a contracting authority, nor contracting entity a part of funds representing percentage equal to or lower than 50 % of funds for the supply of products, the execution of building works and the provision of services, the person shall be obliged to comply with
a) Article 108 paragraph 1 subparagraph a) or subparagraph b), if the estimated contract value equals to or exceeds
1. EUR 40 000, if it is a supply contract, except for supply of foods, and a service contract except for the service listed in Annex 1,
2. EUR 80 000, if it is a contract for supply of products that are foods,
3. EUR 140 000, if it is a building works contract,
4. EUR 400 000, if it is a contract for provision of the service listed in Annex 1,
b) Article 117 paragraphs 1, 3 and 4, if the estimated contract value is lower than the financial limit set out in subparagraph a).
(3) Obligations set out in paragraphs 1 and 2 shall not apply to a person that is neither a contracting authority, nor contracting entity and obtained funds within the measures of a common organisation of agricultural markets28) or funds determined for the support for rural development, agricultural primary production, food, forestry and fisheries sectors according to special provisions;29) this shall not apply to a building works contract or service contract related to such building works, the estimated value of which exceeds the financial limit pursuant to Article 5 paragraph 2 and for which a contracting authority provides over 50 % of funds.
(4) Obligations set out in paragraph 2 shall not apply to a person that is neither a contracting authority, nor contracting entity and obtained funds for the supply of products, the execution of building works or the provision of services according to a special act.29a)
(5) Where a contracting authority provides a contracting entity with funds for the supply of products, the execution of building works or the provision of services related to the activity pursuant to Article 9 paragraphs 3 to 9 and the estimated value of which is lower than the financial limit set out for the award of contracts above the limit by the contracting entity or in case of supplies, building works or services not related to the activity pursuant to Article 9 paragraphs 3 to 9, the contracting entity shall be obliged to comply with the same rules as the contracting authority according to this Act.

28) For instance REGULATION (EU) No 1305/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (Official Journal of the European Union, L 347, 20.12.2013) as amended, REGULATION (EU) No 1308/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (Official Journal of the European Union, L 347, 20.12.2013) as amended.
29) For instance REGULATION (EU) No 1305/2013 as amended, REGULATION (EU) No 508/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 May 2014 on the European Maritime and Fisheries Fund and repealing Council Regulations (EC) No 2328/2003, (EC) No 861/2006, (EC) No 1198/2006 and (EC) No 791/2007 and Regulation (EU) No 1255/2011 of the European Parliament and of the Council (Official Journal of the European Union, L 149, 20.5.2014) as amended.
29a) Act No. 561/2007 Coll. on investment aid and amendments to certain acts as amended.

BENEFITS of e-market:

1. Efficiency, effectiveness and removal of administrative burden

• significant reduction of time for process administration
• minimization of actions by the supplier in presentation of offers
• presentation of documents by the supplier is only required at the registration process
• structured form of orders, that is significant reduction of its scope
• most of the actions is executed by the information system

2. Transparency and elimination of corruption behaviour

• minimization of personal interventions
• automatic evaluation and generation of contract agreements by the information system
• public control of the procurement process without any restrictions
• transparency thanks to trading at one place
• same time, same manner and same conditions for all suppliers
• quality of economic competition by increase in number of suppliers
• simplicity and understandability
• removal of elitism and functional illiteracy by blanket education and support
• online trading on the web
• public access to the course of all purchases, orders, offers and contract agreements

3. Quality and synergy

• standardization of structure and descriptions of subject matters and contract agreements
• emergence of benchmarks for descriptions and prices also affecting above limit contracting
• creation of reference formulas of purchasing and statistics on behaviour of suppliers
• fast and professional placement by copying of successful trades

4. Support of SME suppliers

• simplification of bidding process
• reduction of material, fee and labour costs for an offer
• provision of free advisory for registration, placement of bids and bidding
• shortening of subcontractor chain
• accessible from anywhere

5. Saving time, money and natural environment

• shortening of public procurement process on average from 7 weeks to 1 week
• reduction of administrative burden by removing “paper and envelop”
• reduction of labour costs for administration of bid / bidding
• preparation of an offer comprises of calculation of bidding price and its inserting to the electronic form
• economies of scale due to the amount of trades at one place