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Electronic Auctions save millions for towns

Electronic auctions have been used successfully by Levice, Nová Dubnica, Piešťany, Bytča and the Prešov University Hospital. “We started as early as in December 2005. We have organised dozens of auctions and sometimes with savings up to sixty per cent,” says Božena Krajčovicová from the Municipal Office in Levice. As an example she gives a 417 thousand saving in a million contract for the covering of a municipal building.

Unlike the state system, anyone can use these private systems, if they buy a licence for any procurement, whether in hundreds or millions of euro. In most cases only the Contracting entity pays for a yearly licence and they invite suppliers for their auction, which submit bids. If they meet the relevant conditions, they are invited to the tendering round where they submit their bids, either by price or economic criteria downwards. The automatic system decides which of the submitted bid is the most advantageous for the Contracting entity, thus ensuring transparency and impartiality.

Source: http://www.sme.sk/c/4162072/aukcie-setria-mestam-miliony.html#ixzz1Mmg9xdgu

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