Use of electronic bidding was largely responsible for the US$ 255.51 million (520 million reais) that the Brazilian federal government saved last year in goods and services procurement in comparison with 2004, according to Sérgio Santana, secretary of Logistics and Information Technology in Brazil’s Ministry of Planning.
The savings in relation to 2004 amounted to 9%. This year the government expects to economize 10% through the use of electronic bidding, Santana informed.
The secretary affirmed that, besides the savings, electronic bidding offers other advantages, such as greater transparency in the bidding process.
"Electronic bidding makes business transactions more trustworthy: It inhibits previous deals and arrangements among suppliers, since they don’t know who the other bidders are and who is judging the bids. So there is greater security and transparency throughout the process."
Another plus is that many of the companies that participate in the electronic bidding process are small firms. According to Santana, half of the 232,000 suppliers are small firms.
Santana affirmed that electronic bidding is proving so successful that the government is examining a project to extend internet use to include all other types of bidding. The project is under analysis in the office of the presidential civilian advisory staff.
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