By establishing a framework for joint Eurosystem procurement, the European Central Bank (ECB) aims at fostering the participation of the ECB and the national central banks of the Member States that have adopted the euro in such joint procurement. For that purpose, the ECB adopted on November, 17th, a Decision laying down the framework for joint Eurosystem procurement (ECB/2008/17).

The Eurosystem aims at complying with the principles of cost-efficiency and effectiveness and seeks the best value for money from the procurement of goods and services. The Governing Council has considered that joint procurement of goods and services would be an instrument to achieve these objectives by exploiting synergies and economies of scale.

Therefore, the Governing Council created a Eurosystem Procurement Coordination Office (EPCO) to coordinate joint procurement, and has appointed the Banque centrale du Luxembourg to host EPCO for the period from January, 1st, 2008 to December, 31st, 2012.

Within this scope, Decision ECB/2008/17 will apply to the joint procurement by central banks of goods and services which are necessary for the performance of Eurosystem tasks, taking into account that the participation of central banks in EPCO’s activities and in joint tender procedures will be voluntary.

Eurosystem Procurement Coordination Office main tasks

• Facilitate the adoption of best procurement practices within the Eurosystem.
• Develop the infrastructure (e.g. skills, functional tools, information systems, processes) required for joint procurement.
• Identify potential cases for joint procurement which fall within or outside the scope of this Decision on the basis of procurement needs that central banks address to EPCO.
• Prepare and update as necessary an annual procurement plan for joint tender procedures based on the assessment described in the previous point.
• Prepare common requirements in cooperation with the central banks participating in a joint tender procedure.
• Support the central banks in joint tender procedures.
• Support the central banks in procurement relating to common projects of the European System of Central Banks, if so requested by the central bank leading the project.

A joint tender procedure will be necessary for the purpose of this Decision if either:

1. It is reasonable to expect that the joint procurement of goods and services would result in more advantageous purchase conditions in accordance with the principles of cost-efficiency and effectiveness.
2. The central banks need to adopt harmonised requirements and standards in relation to such goods and/or services.

After having identified a potential case for a joint procurement, EPCO will invite the central banks to participate in a joint tender procedure. The central banks will inform EPCO in good time whether they intend to participate in the joint tender procedure and, if so, communicate their business requirements to EPCO. A central bank may withdraw from participating in a joint procurement prior to the publication of the contract notice.

Tendering and Joint Procurement in the EU

European Community procurement legislation allows for the joint procurement of goods and services by several contracting authorities. This principle is reflected in Directive 2004/18/EC of the European Parliament and of the Council of March, 31st, 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts, which provide for the use of certain centralised purchasing techniques.

Since the introduction of the obligation for publication and transparency in the tendering process within the European Union, in order to assure a level playing field for all economic operators, many actions have put forward in order to ease the access to such procedures, especially to SMEs, as well as ensure the most cost-effective criteria to be met.