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Contracting Authorities


Many EU countries already use electronic procurement to make tendering of public sector contracts, issued by a respective contracting authority, simpler and more efficient. However, most of these solutions are implemented solely on a national or regional level, with limited access to other communities. PEPPOL will break down these barriers to allow seamless electronic communication across borders and communities.


A contracting authority means a state, regional or local authorities, bodies governed by public law, associations formed by one or several of such authorities or one or several of such bodies governed by public law.


Significant benefits for taxpayers and government authorities on all levels are the result:

  • Improved market access, particularly for SMEs (small and medium enterprises), increases competition and lowers costs

  • Greater transparency increases public accountability and reduces potential for corruption

  • Automated procurement speeds up administrative activities and reduces costs

  • Streamlined processes facilitate faster transition to green, sustainable purchasing

  • Enhanced exports by national businesses increase the tax base


Through their purchasing power, governments significantly influence market dynamics. In the near future, eProcurement will become the norm for conducting business within the EU. Government authorities are expected to save Euro 50 billion to Euro 75 billion annually once eProcurement is fully operational (Source: Deutsche Bank Research eProcurement, February 2011). These savings though do not rely on job cuts; rather, with greater efficiencies, government authorities can redeploy personnel in higher value functions.


Local governments in particular will benefit from PEPPOL. They will be able to easily adopt the inexpensive automated procurement solutions. They can take advantage of all the benefits previously enjoyed by larger organisations.


Awareness and consensus building are therefore of utmost importance to PEPPOL’s success beyond the lifetime of the current pilot project. This is achieved through dissemination of project information, encouraging Member States to join as project partners, and facilitating the take-up of project deliverables, with specific focus on SMEs.


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