About the Federal Procurement Agency
The Federal Government founded the Federal Procurement Agency (BBG, "Bundesbeschaffung GmbH" in 2001 by the Federal Procurement Agency Act ("BBGmbH-Gesetz") to provide central procurement services to federal agencies, in particular to negotiate framework contracts and make them available to the agencies. Its primary tasks are to bundle requirements to obtain better prices and terms from suppliers and to standardise public purchasing to reduce processing costs and legal risks. From the beginning it was clear that only e-enabled services would lead to consistent usage of the framework contracts and would also strengthen the complete audit ability of the procurement process. The e-procurement-solution hence comprises of an electronic publication and notification platform, a desktop purchasing system, a travel booking tool and a data warehouse and analysis tool where the purchase data is saved for analysis and reporting.
The BBG is a non-profit organisation providing free services to their mandatory clients. Federal Insitutions are obliged to order from these contracts - unless they are able to obtain the same product to better conditions. Other public sector organisations like universities, communities, states, state-owned organisations or health organisations may take advantage of BBG's contracts and services for a modest fee. Delivery and payment is done directly between supplier and requesting public body.
The central aim of the BBG is the reduction of costs of public procurement by standardisation and bundling of needs. In 2014 the FPA reported procurements of 1,2 Billion Euro and savings of 17.7 percent (253 Million Euro).
In 2014 the Federal Procurement Agency saved a total amount of 253 Million Euro.