[Weekly Compilation of Presidential Documents Volume 29, Number 43 (Monday, November 1, 1993)]
[Pages 2174-2175]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Memorandum on Streamlining Procurement Through Electronic Commerce

 October 26, 1993

Memorandum for the Heads of Executive Departments and Agencies, the 
President's Management Council

Subject: Streamlining Procurement Through Electronic Commerce

    The Federal Government spends $200 billion annually buying goods and 
services. Unfortunately, the red tape and burdensome paperwork of the 
current procurement system increases costs, produces unnecessary delays, 
and reduces Federal work force productivity. Moving to an electronic 
commerce system to simplify and streamline the purchasing process will 
promote customer service and cost-effectiveness. The electronic exchange 
of acquisition information between the private sector and the Federal 
Government also will increase competition by improving access to Federal 
contracting opportunities for the more than 300,000 vendors currently 
doing business with the Government, particularly small businesses, as 
well as many other vendors who find access to bidding opportunities 
difficult under the current system. For these reasons, I am committed to 
fundamentally altering and improving the way the Federal Government buys 
goods and services by ensuring that electronic commerce is implemented 
for appropriate Federal purchases as quickly as possible.

1. Objectives.

    The objectives of this electronic commerce initiative are to:
    (a) exchange procurement information--such as solicitations, offers, 
contracts, pur- 

[[Page 2175]]

chase orders, invoices, payments, and other contractual documents--
electronically between the private sector and the Federal Government to 
the maximum extent practical;
    (b) provide businesses, including small, small disadvantaged, and 
women-owned businesses, with greater access to Federal procurement 
opportunities;
    (c) ensure that potential suppliers are provided simplified access 
to the Federal Government's electronic commerce system;
    (d) employ nationally and internationally recognized data formats 
that serve to broaden and ease the electronic interchange of data; and
    (e) use agency and industry systems and networks to enable the 
Government and potential suppliers to exchange information and access 
Federal procurement data.

2. Implementation.

    The President's Management Council, in coordination with the Office 
of Federal Procurement Policy of the Office of Management and Budget, 
and in consultation with appropriate Federal agencies with applicable 
technical and functional expertise, as necessary, shall provide overall 
leadership, management oversight, and policy direction to implement 
electronic commerce in the executive branch through the following 
actions:
    (a) by March 1994, define the architecture for the Government-wide 
electronic commerce acquisition system and identify executive 
departments or agencies responsible for developing, implementing, 
operating, and maintaining the Federal electronic system;
    (b) by September 1994, establish an initial electronic commerce 
capability to enable the Federal Government and private vendors to 
electronically exchange standardized requests for quotations, quotes, 
purchase orders, and notice of awards and begin Government-wide 
implementation;
    (c) by July 1995, implement a full scale Federal electronic commerce 
system that expands initial capabilities to include electronic payments, 
document interchange, and supporting databases; and
    (d) by January 1997, complete Government-wide implementation of 
electronic commerce for appropriate Federal purchases, to the maximum 
extent possible.
    This implementation schedule should be accelerated where 
practicable.
    The head of each executive department or agency shall:
    (a) ensure that budgetary resources are available, within approved 
budget levels, for electronic commerce implementation in each respective 
department or agency;
    (b) assist the President's Management Council in implementing the 
electronic commerce system as quickly as possible in accordance with the 
schedules established herein; and
    (c) designate one or more senior level employees to assist the 
President's Management Council and serve as a point of contact for the 
development and implementation of the Federal electronic commerce system 
within each respective department or agency.

3. No Private Rights Created.

    This directive is for the internal management of the executive 
branch and does not create any right or benefit, substantive or 
procedural, enforceable by a party against the United States, its 
agencies or instrumentalities, its officers or employees, or any other 
person.
    The Director of the Office of Management and Budget is authorized 
and directed to publish this memorandum in the Federal Register.
                                            William J. Clinton

[Filed with the Office of the Federal Register, 11:12 a.m., October 27, 
1993]

Note: This memorandum was published in the Federal Register on October 
28.