RESTRICTEDWORLD TRADE
ORGANIZATIONGPA/W/24/Add.6
15 July 1998
(98-2798)
Committee on Government Procurement Original:  English
QUESTIONNAIRE ON INFORMATION TECHNOLOGY
IN GOVERNMENT PROCUREMENT
Response by the United States
Addendum
The attached communication contains the replies from the United States to the questionnaire
on Information Technology in Government Proc urement contained in document GPA/W/24, dated
22 August 1996.GPA/W/24/Add.6
Page 2
QUESTIONNAIRE ON INFORMATION TECHNOLOGY
1. Could delegations give a brief description of any steps taken or planned to introduce
information technology into public procurement?  If  so, does this cover contracts which are covered
under the 1994 Agreement?  At all levels of gover nment?  In the event that delegations are not
considering introducing information technology into public procurement, could they explain the
reasons?
The United States is undertaking an ambitious and far-reaching initiative to utilize Electronic
commerce (EC) to enhance the public procurement process.  There have been several executive-level
memoranda and legislative initiatives that have reinforced the high priority of EC.  To help foster
government EC partnerships, the President's Management Council (PMC) - comprised of cabinet
agency chief operating officers - provides a fo rum for coordinating EC development activity across
the federal acquisition, finance, and information technology communities.  The PMC has created theElectronic Processes Initiatives Committee (EPIC), a functionally integrated, inter-agency body, to
coordinate EC development activity across the federal acquisition, finance, and information
technology communities.  In March 1998, EPIC submitted to Congress a strategic plan for integrating
procurement and payment functions with the latest developments in EC technology and business
practice.
It is anticipated that all departments and agencies will eventually utilize electronic commerce
for purchases as appropriate.  Initially, the sp ecific focus will be on high-volume, low-dollar
purchasing.
2. What function(s) would information technology  serve in such systems and who will be the
users?
Our vision is that all federal agencies will support their programs by making available
customer-friendly electronic purchasing tools integrated with end-to-end commercial electronic
processing of payment, accounting, and performance reporting information as appropriate.  An ECtoolkit is being developed in such a manner as to  permit the exchange of procurement information
electronically for various phases of the procurement process.  This includes:  improving market
research, providing notice of contract opportunities through a single point of entry for opportunities
valued at or above US$25,000, providing notice of contract award, and making payment.
Buyers, sellers, financial and information techno logy providers, and reviewing authorities are
all interested stakeholders.  The needs of each stakeholder must be identified and addressed in order to
successfully make the transition from paper to electronics.  For example, sellers - small and large,
selling domestically and from abroad - need easy, effective, and inexpensive ways to find customers
and market their products.  Sellers competing from abroad need to be able to learn as quickly as
possible about contracting opportunities and communicate as efficiently as possible usinginternationally-recognized standards that ease the electronic interchange of information.  The strategic
plan provides policy principles that reflect the varying needs of buyers and sellers to guide the
government's EC investment decisions.
3. Could delegations describe the technical aspects of the systems in use or planned?  In
particular as regards infrastructure/hardware-software and its options/standards?
Agencies are using commercial off-the-shelf so ftware.  Electronic Data Interchange (EDI) is
being utilized, especially with major vendors on a one-to-one basis.  Agencies are starting to focus on
the Internet for low-cost, reliable delivery of procurement information to a broad audience.  Purchase
card use has grown dramatically; purchase cards were used for more than ten million transactions
worth in excess of US$5 billion in 1997.  The purchase card reduces the administrative time and costGPA/W/24/Add.6
Page 3
associated with micro-purchases (purchases below US$2,500).  Agency buyers are increasingly using
electronic catalogues.  Electronic catalogues can help to shorten order-cycle times.  In addition,
agency personnel can use electronic catalogues to gain greater awareness of the products and services
available under contract and more easily make informed comparisons.
An Electronic Posting System pilot using Internet is presently being conducted to provide
sellers with:  full text search of all solicitation documents government-wide; indexed search of
solicitations government-wide;  download of soli citation documents for local printing and editing;
and automated query of contract opportunity databases by federal supply code, date, or location, and
the ability to sign up for mailing lists that automatically send notices of new solicitations.  In addition,
the pilot is intended to provide important increased functionality to buyers, including:  direct upload
of solicitation documents to the Internet including requests for information, draft requests for
proposals, questions and answers, engineering drawings , bidder lists, and award notices and the ability
to use a bidders list to provide directed notification to vendors of solicitation actions for buys between
US$2,500 and US$25,000 where they wish to find new sources or alternative sources.
4. Could delegations describe any limitations affecting access to information available and use
of systems?  How wide is potential access to interested suppliers?  What are the access possibilities
for suppliers of other signatory countries?  What possible obstacles to access might arise for
suppliers in other signatory countries?
As there is more movement to Internet, there are concerns about security and authentication
of users.  At present, there are major efforts under way to research and resolve these issues.
EC will help promote greater access for the foreign and domestic suppliers to the
United States procurement system.  Rather than restricting access by foreign suppliers, EC will reduce
many of the disadvantages experienced by foreign suppliers due to their distance from the procuring
entity, by providing faster notification.  Using the Internet, for example, sellers worldwide can access
CBDnet to learn about contracting opportunities.
5. For those Parties who use databases which list government procurement opportunities:
(i) What are the names of their databases?
The Commerce Business Daily (CBD), the publication which provides information on
contracting opportunities, is available online.  CBDNet provides advertizers and users with better
access and support.
(ii) How long have the databases been operational and how many suppliers use the
databases?
CBDNet has been operational since 1 November 1996.  CBDNet has, on the average, 79,000
hits a day.
(iii) Is a fee charged to suppliers using the systems?  If so, how much, and what is
included in the fee?
No fee is charged to the vendor.
(iv) Can suppliers obtain tender documentation electronically?  If so, how?
CBDNet allows federal government agencies who are advertizing contract opportunities to
instantaneously submit procurement notices by Internet email and permits users to find, select, andGPA/W/24/Add.6
Page 4
display synopsis information using text or classification code searches.  It also provides for agencies
to establish hot links between the CBD notice and the actual solicitation.
(v) How is information on the databases organized?
Information can be accessed by date, location, key word or phrase, contracting officer name
and address, agency, standard industrial classification code, URL, award notice, and email address.
(vi) Do the databases offer any other features?
Other features include:  email link, three search engines, a help section, a live help desk, and a
URL link.
(vii) What is the approximate number of procurement opportunities listed on the databases
annually?
137,000 procurement opportunities were listed last year.
(viii) Are the systems managed by the government or a private company?The United States Government manages CBDNet.
(ix) Can Parties' databases be interrogated using international standards, such as SQL
Standard Query Language?
Currently, CBDNet can not accept SQL.  In an effort to provide acquisition-related
information to industry more quickly and cheaply, CBDNet will be enhanced.  The enhancement ofCBDNet will use SQL.
(x) Are all notices which are required to be published under Articles IX and XVIII: I of
the Agreement - for entities in Annexes 1, 2 and 3 - also available on databases?  If
so, do such notices contain at least the minimum information required to be published
under Articles IX and XVIII:1?
Currently, all open market contract opportunities above US$25,000 are published
electronically and available through a convenient, universally accessible, Government-wide, single
point of entry, called CBDNet.  Synopses of contract awards that are currently published in the CBD
(e.g., because the award is subject to the Trade Agreements Act or is over US$25,000 and is likely to
result in the award of any subcontracts) may also be found on CBDNet.
(xi) How are Agreement-covered notices identified?
On CBDNet,  they are identified by a numbered note, number 12.
(xii) To what extent does each type of notice contained in databases conform to a standard
structure?
The notice conforms to the standard specified in Part 5 of the Federal Acquisition Regulation
(FAR).GPA/W/24/Add.6
Page 5
(xiii) Is any particular classification used in such notices to describe purchases and, if so,
which classification?
There is no special classification code.  The CBDNet classification code covers types of
supplies and services.
(xiv) Where databases exist in a non-WTO language, to what extent are notices and
information summarized in a WTO language?
The CBDNet information and notices are presented in the English language.
6. For those Parties who are involved in action in the area of electronic commerce:
(i) Please provide full information on projects and plans with regard to electronic
commerce.
(ii) Could those parties who have experience with electronic commerce provide
information on such experiences.
A strategic plan for procurement was transmitted to Congress on 1 March 1998.  The plan,
Electronic Commerce for Buyers and Sellers , presents our vision of how EC-related technology can
improve government acquisition and related processes.  The plan provides a strategy - not a "one sizefits all" solution - for expanding use of EC.  The plan presumes that agencies will rely on commercial
products, services, and practices whenever possible.  Moreover, the plan recognizes that technology
and the market-place are dynamic and accordingly anticipates change.  A brief discussion of some of
the current initiatives follows:
A. P
ROMOTING EASY, USER-FRIENDLY INTERACTIONS BETWEEN BUYERS AND SELLERS
Easy interaction in an electronic environment begins with information.  To this end, the
National Partnership for Reinventing Government, the Office of Federal Procurement Policy, and the
General Services Administration (GSA) created th e Acquisition Reform Network (ARNet) to serve as
a central location on the Internet for both government and industry for quick access to a wide variety
of information relating to government contracting.  ARNet includes a reference library of governmentlaws, regulations, policies, best practices and training packages.  Most government agencies have
developed their own Internet websites (or homepage s) and linked them to ARNet to provide sellers
with additional agency-specific information on contracting, including, in some cases, long-range
forecasts of agency needs, draft requests for proposals (RFPs), and solicitations.
Improving access to open market contracting opportunities through the use of EC has long
been, and remains, a key government initiative.  As discussed above, CBDNet serves as the single,
government-wide point of entry through which sellers may obtain, free-of-charge, notices of all open
market purchases above US$25,000.  Sellers looking for contract opportunities may search CBDNet
by text, fields, or classification codes.  Future enhancements will permit buyers to post solicitations
and other pertinent information, in addition to notices, directly to the Internet, thus giving sellers
access to this information through a single, government-wide point of entry.
The Small Business Administration (SBA) recently implemented PRONet, a free-of-charge,
Internet-based online search engine providing access to the profiles of more than 170,000 small
businesses, including disadvantaged, 8(a) certified women-owned firms.  PRONet contains company
profiles with products and services, history, references, and other information.  It also provides
contractors with assistance in locating small business contractors and subcontractors as well as
teaming opportunities with small businesses.GPA/W/24/Add.6
Page 6
B. USING EC T O FACILITATE SMALLER DOLLAR PURCHASES
Purchase cards (i.e., credit cards for business) are revolutionizing the way the government
buys and pays for small dollar purchases.  In 1997, purchase cards were used for more than
ten million transactions worth in excess of US$5 billion.  According to a study, the purchase card
helps agencies reduce administrative transaction costs producing cost savings of greater than50 per cent, or US$54 per transaction on average, when compared to purchase order processing.  In
February 1998, the GSA awarded a government-wide multiple award task order contract for the next
generation of purchase cards.  This contract (which takes effect in November 1998) will allow
agencies to select a service provider to help re-engineer and integrate business practices related to
purchase, travel-related payment services and fleet services.
Agencies are creating electronic catalogues.  These are web-based electronic systems
involving contracts with pre-established business arrangements that government buyers can browseand place orders under electronically.  Agencies report that electronic catalogues help them to:  (1)
shorten order-cycle times;  (2) reduce the resources required to fulfill needs;  and (3) gain greater
awareness of the products and services available under contract.
__________