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1994.10.04 : Electronic Procurement System

Contact:  HHS Press Office     (202) 690-6343
Tuesday, Oct. 4, 1994


    HHS IS FIRST CIVILIAN AGENCY ON ELECTRONIC PROCUREMENT SYSTEM

     HHS Secretary Donna E. Shalala today formally launched the
department's participation in a government-wide electronic commerce
system.  Through the new system, federal agencies will be able to
announce requests for bids, receive bids from private firms, and
make purchases over an electronic network.

     "This is a good example of our effort to reinvent and modernize
the processes of government," Secretary Shalala said. "It will make
our procurement process work better, work faster, and cost less. 
And at the same time, it can make opportunity more accessible to all
those who want to do business with the government, which can mean a
more competitive environment." 

     Shalala marked the launch by making a purchase electronically
over the new system.  

     HHS will phase in its use of the new system in FY 1995 for
smaller purchases, and by January 1997 will have full electronic
support for its entire procurement system.  The department makes
purchases totalling almost $3.5 billion each year through the
procurement process.

     HHS is the first civilian agency to join the government-wide
system, which uses a Department of Defense-operated network to
provide a single point of entry for any vendor wishing to bid for
government business.  A government-wide electronic commerce system
was called for by the president in a memorandum last Oct. 26 when
the Vice President's National Performance Review was released.

       Steve Kelman, administrator of the Office of Federal
Procurement Policy at the Office of Management and Budget, took part
in the launch event today and complimented HHS and DoD for their
cooperation.  Deputy Undersecretary of Defense Colleen Preston also
took part.

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