IBM Transforms Procurement for German Labor Office

IBM Launches Electronic Procurement Management System for Bundesagentur für Arbeit

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STUTTGART, GERMANY - 20 Feb 2007: The Bundesagentur für Arbeit (BA), the federal government agency responsible for supporting Germany's labor market, and IBM (NYSE: IBM) today announced an innovative new project to improve the agency's procurement processes. The solution includes a web-based procurement and contract awarding management system called Public Electronic Procurement BA (PeP). The new system ensures uniform nationwide handling of all procurement processes, thus reducing purchasing costs and improving efficiencies.

PeP will support all public sector central and regional purchasing processes in Germany for commercial enterprises and freelance services. IBM Global Business Services consultants will be responsible for managing the launch of the IT project and the implementation of the Administration Intelligence (AI) Vergabemanager and AI LV-Assistent software. AI Vergabemanager will perform management and control functions, while AI LV-Assistent will evaluate purchasing requests and suggest suppliers from the agency's preferred supplier database.

Within the framework of the PeP e-solution, the Bundesagentur für Arbeit has already seen positive results from two previous projects, including a Web-based e-ordering system and a materials management system. All of the systems will be critical in the future as both the purchasing volume and materials requests continue to increase.

PeP will also be compliant with the new EU public procurement law. The specific requirements of the Bundesagentur für Arbeit and its regional procurement centers regarding bought-in services such as further education and integration measures to comply with the social security code are also being accommodated.

The agreement was signed in Q4, 2006.

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