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Transcript of E-procurem.andra Predesh
8/8/2019 E-procurem.andra Predesh
http://slidepdf.com/reader/full/e-procuremandra-predesh 1/38
eProcurementeProcurementin Andhra Pradeshin Andhra Pradesh
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Procurement in GoAP Procurement in GoAP
GoAP annual procurement ~ Rs. 8000 Cr ± Goods, Services, Works and Turnkey contracts
Procurement Practices
± Centralised Procurement ± AP Medical Infrastructure, COT ± Distributed Procurement ± APSRTC
Common Procurement Mechanisms ± Tenders ± Open, Limited, Single
± Rate contracts ± Direct Purchase Orders
Processes governed by the guidelines of AP Govt. andof external agencies like WB and OECF
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Problems in Conventional Problems in Conventional
Procurement Procurement Tender boxes at multiple locations
Delays in issue of tender schedules to suppliers
Cartel formation suppresses competition
± keeping financial bids close to the maximum permissible
Physical threats to bidders
Manual movement of tender files from districts to theoffices of the Heads of Department
Delays in finalisation of tenders
Possibility of tampering or loss of records
Human interface at every stage
Difficulty in maintaining confidentiality of evaluation
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Cabinet subCabinet sub--committee on tender committee on tender
reformsreforms ± ± Year 2000Year 2000
Simplification of procurement procedures
Achieving greater transparency in procurement
Reducing delay in procurement
Improving quality of construction
Ensuring timely completion of projects
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I nitial Steps in 2002 I nitial Steps in 2002
eProcurement identified as a core eGovernance project
± with relevance across the government
First among governments to implementeProcurement
Services of PwC utilized to prepare RFP
Steering Committee initially headed by SpecialCS, T,R&B ± later headed by CS
Transparent & meticulous selection process
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ee--Procurement Objectives for GoAP Procurement Objectives for GoAP
Leverage buying power through demand aggregation
Better value for money for government
Significantly reduced cost and time of doing business
for both government and industry
Level playing field, ³fair´ competitive platform and
single registration for the suppliers
Increased transparency, monitoring and control of
procurement process
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Steering CommitteeSteering Committee
Chaired by Spl. Chief Secretary, Transport Roads &Buildings Dept during pilot phase
Now chaired by Chief Secretary
Members include ± Concerned Principal Secretaries/ Secretaries
± Heads of all participating Departments and organizations
± Representative of Service Provider
Mandate to take decisions on business model, selectionof service provider, process re-engineering & changemanagement
Acted as platform for inter agency collaboration
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Initiate
Implement
e-Procurement
Decision on
Exchange Model
Decision on
Ownership Model
Join Existing
Exchange
Build PrivateExchange
Independent
Exchange
Supplier-Led
Exchange
Exchange#1
Exchange#n
Govt.-Led
Exchange
Business & technology models Business & technology models
Decision on
Operational Model
Single Point
Co-ordination
Distributed
Operations
Decision on:
Technology
Leveraged
Solution
Ground up
Development
Package
Implementn.
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Scope of eScope of e--Procurement Services Procurement Services
Pre-procurement processes
Tender Management system ± Online publication of tender notice
± Online bid submission ± Online evaluation
± Online issue of Letter of award
Rate contracts and catalog buying
Auctions & reverse auctions Supplier registration
Contract monitoring
ePayments, PKI
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ee--Procurement Procurement ± ± Business Model Business Model
Public Private Partnership Model selected
Partner expected to:
± invest upfront in the project based on the ASP model
± build and customize an eProcurement exchange ± recover investment through hosting, transaction fees and
value-added services to suppliers
Pilot for 9 months with 4 key depts/organizations
± APTS, APSRTC, APHMHIDC & COT ( I&CAD, R&B)
After success of pilot, option kept to form JV, or toexplore alternate models
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Departments Selected for Pilot Departments Selected for Pilot
APSRTC
Deals with big suppliers like MICO,Ashok Leyland etc.
Total procurement spend of Rs.946 crores
Over 2000 suppliers
Majority of tenders are µLimited¶.
APTS
Web interface for other department users
exists for inquiring the procurement
status, submitting the tender.
Procurement spend of over Rs 65 Crores.
APHMHIDCComputerization exists at the store levels.
Supplies drugs to over 1500 hospitalsProcurement spend of over Rs 100 Crores
Over 1000 PO¶s per annum
COT
Central cell for Irrigation and R&B
Total value of tenders accepted in
F.Y.2002-03 , 330Cr
Procurement of works above 1 Cr
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Selection of Private Partner Selection of Private Partner
Ariba
Commerce One
12 Technologies
Iplanet ± SUN Oracle
SAP Markets
Tejari.com
Wipro01 markets
Indiamarkets
Freemarkets People soft
Broad vision
M/s PwC prepared RFP
Based on market research RFP was issued to 12
leading eProcurement firms in India and abroad
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ee--Procurement project phases Procurement project phases
Phase I
Analysis and Design
Phase II
Solution Selection
Phase III
Conduct Pilot
Phase IV
Roll Out
Analyse spend Study business
requirements
Assess supplier
readiness
Identify high level
technical and
functionalrequirements
Develop business
model
Solution evaluationapproach
Solution selection
Identify select
departments for e-
Procurement pilot
Identify necessary
third party solutionproviders
Functionalrequirements for the
pilot
Creation of catalogs
Supplier adoption
Infrastructure
creation
³Sample´ transaction Training and
documentation
Change
management
Analysis of learnings
Roll-out plan
Departmental roll-out Additional
functionality roll-out
On-going operations,
maintenance,
administration
CurrentStage
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I nfrastructure & Training in Pilot I nfrastructure & Training in Pilot
www.procurement.gov.in hosted on 4 high-end
RAID 5 servers at Tata Data Centre
Infrastructure made operational in:
R&B: 20 circles + 5 Chief Engineers + EnC Irrigation: 25 circles + 9 Chief Engineers + EnC
APHMHIDC: 23 stores + HQs
Commissionerate of Tenders
APTS & APSRTC (infrastructure upgraded)
More than 300 contractors/suppliers registered
500+ contractors/suppliers trained on eProc
More than 300 officers trained on eProc
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GOAP e-Procurement Architecture DiagramTheimage cannotbed isplayed.Your computer may nothaveenough memory toopen theimage,or theimage may havebeen corrupted.Restart your computer,and then open thefile again.If thered x stillappears,you may havetodeletethe imageand then insertit again.
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E E --Procurement Security Features Procurement Security Features
Encryption of sensitive information at the database level
PKI enabled: Supports Digital certificates from any CA
Digital Notorization services for time stamping
128 bit SSL encryption of all transactions
Admin & transaction log of each event
Firewall to prevent unauthorised access
Intrusion detection system
Antivirus protection
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Ex ecutive OrdersEx ecutive Orders
& Service Level Agreement & Service Level Agreement Government orders issued
± Generic G.O. Ms. No. 2 dt. 15.01.03 by IT&C Dept
± Engineering: G.O. Ms. No. 36 dt. 07.03.03 by I&CAD Dept
_ On line tenders mandatory for transactions above Rs 1 Cr
± Instructions issued to publish all NITs on eProcurement
marketplace ± Model SLA approved by Steering Committee on Jan 24th 2003
± SLA signed by participating departments separately
eProcurement portal launched on Jan 29th, 2003
Threshold limit lowered to Rs 50 Lakhs for eprocurement
Roll out to all depts.: G.O. Ms. No. 20dt. 06.07.2004 byIT&C Dept
- Threshold limits further lowered to Rs 10 Lakhs
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eProcurement eProcurement -- Benefits demonstrated Benefits demonstrated
Savings to Government
± Total anonymity generated more competition
± Discounts quotations even in Single bid tenders
± Savings estimated at Rs. 255 Cr in 2003-04 ± Significant reduction in newspaper advertising costs
± Automated work flows shortened tender cycle time from 90 to
180 days in the manual process to 45 days in eProcurement
Transparency
± Bid documents freely available on Net.
± Tender evaluation status automatically published to bidders
± Corrigendums in public domain
± No interface with departments upto tender opening
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Reformist outlook to Govt
± Eliminated cartels, syndicates
± Avoided fighting among potential bidders
± Drastic reduction in adverse press reports
± Project won Golden Icon award for eGovernance
Initiative
Empowerment of Bidders ± Remote submission of bids
± Reduced bidding costs
± No more dependence on departmental officials
eProcurement eProcurement -- Benefits demonstrated Benefits demonstrated
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Tender AnalysisTender Analysis source source--COT COT
Year No. of tenders ECV(Cr) TCV (Cr) %
2001-02 188 755.29 735.57 (-)2.65
2002-03 125 558.36 510.07 (-) 8.65
2003-04 160 1101.69 884.21 (-) 19.74
Type No. of
tenders
ECV (Cr) TCV (Cr) %
eProcurement 107 733.55 549.93 (-)25
Conventional 53 368.14 334.78 (-) 9
Tender approved during 2003-04
Additional discount due to eProcurement was 16%
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E-Procurement MISTheimage cannotbe displayed.Your computer may nothaveenough memory toopen theimage,or the imagemay havebeen corrupted. Restartyour computer,and then open thefileagain.If thered x stillappears,you may havetodeletethe imageand then insertit again.
http://www.eprocurement.gov.in/http://www.eprocurement.gov.in/
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ASP model to be continued
7 servers at Primary site and 2 servers at DR site
Exclusivity to C1 India for e-procurement for tendersabove Rs. 10 lakhs ECV.
APTS to develop an alternate eprocurement platformfor Rs. 10 lacs and below
Agreement period for 3 years (from 1-4-2004 to 31-3-2007)
Source Code will be kept in an Escrow account GoAP would buy the software at the end of three
years at the Residual Value of Software
Eprocurement fund proposed to sustain theeprocurement initiatives and for supporting related
projects
N ew Business Model N ew Business Model Recommended by SubRecommended by Sub--committee and approved by Steering Committeecommittee and approved by Steering Committee
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Pricing payable to C1 India:
± No tender hosting charges
± 0.04% of ECV with a cap of Rs. 10,000/- per bidder for
all works upto ECV of Rs. 50 crores and Rs.25, 000(Twenty five thousand) per bidder for works with ECV
above Rs. 50 crores. Service charge @10.2% is extra
over above tariff.
± GoAP would not give any guarantee to C1 India on the
revenues
± The bid processing fee to be collected from the bidders
electronically at the time of submission of bid.
N ew Business Model N ew Business Model Recommended by SubRecommended by Sub--committee and approved by Steering Committeecommittee and approved by Steering Committee
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Current statusCurrent status
Pilot done successfully & Rolled out
15 Departments & Organizations currently participating ± PR Engg, SW Engg, PH Engg, Police Housing, Animal Husbandry dept, APSRTC,
Horticulture, HMWS&SB, HUDA, APSTC, 6 Municipalities joined later apartfrom those in pilot phase
APTransco and Singareni are expected to join in
Decision taken to extend eProcurement to all Depts.
WB concurrence to use portal for funded projects sought
2003-04: Rs.1982 Cr (564 Nos)2004-05: Rs. 1308 Cr (1401 Nos - upto Jan 05)completed & Rs 1124 Cr (2070 Nos) in progress.
Target volume for 2004-05 is Rs. 5000 cr.
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Change Management Change Management
Key officers of engineering depts trained as CIOs
³As Is´ position documented having multiple rounds of interaction with each department
eProcurement processes explained to officers
Series of workshops with departments and contractors tocapture requirements
³To Be´ models based on feedback from stake holders
Customized processes validated by departments
Friendly User interface ± departmental terms used Intensive training for officers and contractors
Tender fee pegged at zero in pilot project
Very active help desk support
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Some lessons «Some lessons «
Support of Top Leadership is must
ASP model ± innovative & effective, but always under close scrutiny
Pricing model ± combination of value & no. of transactions ± a new pricing model has emerged
A significant part of Government¶s eProcurement isthrough engineering tenders
Denial of tender ad revenues initially alienates press Building support among suppliers essential
Core policy & implementation team critical for success
Supplemented by CIOs trained within key depts
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W ay Forward «W ay Forward «
Contractors Database Information System
- Validated database of contractors experience
- Drastically reduces tender cycle time to 2 to 3days
- online updating facility of database
Auto bid evaluation in eprocurement Contract management module
Online work bills and e-payments to contractors
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Message « Message «
Think Big ± Start Small- Scale up Fast
Quantum Jump but not Small
Long term plan with aggressive strategy Transparency and Accountability
Involve stake holders
Mobilise Top leadership support.
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Thank YouThank You